Understanding MFRS
Malaysian Financial Reporting Standards — Applied, Not Just Explained
A comprehensive 2-day workshop for finance and accounting professionals who need a working understanding of current MFRS standards — including how each standard affects financial statements, and the correct accounting entries to apply them.
MFRS Is Constantly Evolving — Keeping Up Is Not Optional
MFRS standards are not static. They change, expand, and interact with each other in ways that directly affect how your company recognises revenue, reports assets, classifies financial instruments, and discloses information to stakeholders. For finance and accounting professionals, staying current is a professional obligation — not a preference.
The challenge is that MFRS documentation is dense and technical. Reading the standards alone is rarely enough to understand how they apply in practice, what the correct accounting treatment looks like, or how a change in one standard cascades into your P&L, Balance Sheet, and Cash Flow Statement simultaneously.
This 2-day workshop bridges that gap — taking each standard from definition through to practical accounting entries, financial statement impact, and disclosure requirements. Participants leave knowing not just what each standard says, but how to apply it.
Are your accounting entries for leases, revenue, or financial instruments still based on the old FRS rather than current MFRS?
Do your team members understand how MFRS 9 classification affects the P&L — or do they apply it mechanically without understanding the impact?
Has your team struggled to explain MFRS-driven changes in financial results to management or auditors?
Are impairment calculations, borrowing cost capitalisation, or employee benefit disclosures areas where your team lacks confidence?
From Standard Knowledge to Confident Application
By the end of this 2-day programme, participants will be able to apply all 8 MFRS standards covered — not just define them. The focus is on recognition, measurement, accounting entries, and financial statement impact in each case.
Apply MFRS 9 to classify, measure, and derecognise financial assets and liabilities correctly
Recognise revenue under MFRS 15 using the 5-step model and identify performance obligations accurately
Account for leases under MFRS 16 — including right-of-use assets, lease liabilities, and sale-and-leaseback
Calculate depreciation and disposal of PP&E under MFRS 116 with correct accounting entries
Assess and calculate asset impairment under MFRS 136 and understand when impairment must be recognised
Account for employee benefits — short-term, post-employment, and termination under MFRS 119
Apply income tax accounting under MFRS 112 — current tax, deferred tax, recognition and measurement
Capitalise borrowing costs correctly under MFRS 123 and apply correct disclosure requirements
Workshop Methodology — Applied, Not Passive
Technical standards are learned best through application. Every module uses a combination of structured teaching, worked examples, and exercises so participants can test their understanding before leaving the room.
Interactive Lecture
Each standard is taught with clear explanation of the principle before application — no assumption of prior knowledge.
Group Discussion
Scenarios drawn from real company situations — participants discuss how each standard applies to their own context.
Individual Assignments
Worked exercises to confirm understanding of accounting entries and financial statement impact for each standard.
Group Activities
Collaborative application of standards across multi-topic scenarios — reinforces how standards interact.
2-Day Programme — 8 MFRS Standards
Day 1 covers the three most complex and frequently updated standards — MFRS 9, 15, and 16. Day 2 covers MFRS 116, 136, 119, 112, and 123, completing the full picture of how each standard affects financial statement preparation and disclosure.
MFRS 9 · MFRS 15 · MFRS 16
MFRS 116 · MFRS 136 · MFRS 119 · MFRS 112 · MFRS 123
MFRS 9 replaced FRS 139 and introduced significant changes to how financial instruments are classified, measured, and impaired. This module covers the full standard — from initial recognition through to derecognition, derivatives, and disclosure.
- Definition, concept, and scope of MFRS 9
- Definition and classification of Financial Assets and Financial Liabilities
- Recognition and initial measurement of financial instruments
- Subsequent measurement, reclassification, gains and losses
- Derecognition of Financial Assets and Financial Liabilities
- Accounting for Derivative Instruments
- Impact of MFRS 9 on the financial position and profit and loss
- Presentation and Disclosure requirements under MFRS 9
MFRS 15 fundamentally changed when and how revenue is recognised. This module works through the 5-step revenue recognition model in full — from identifying contracts through to recognising revenue and accounting for contract costs.
- Concept, scope, and changes introduced by MFRS 15
- The 5-step revenue recognition model
- Identifying Performance Obligations in a contract
- Determining and allocating the Transaction Price
- Satisfaction of a Performance Obligation — point in time vs over time
- Recognition of revenue and Contract Costs
- Accounting entries for MFRS 15
- Specific guidance for sales of goods and rendering of services
- Presentation and Disclosure under MFRS 15
MFRS 16 eliminated the distinction between operating and finance leases for lessees, requiring most leases to be recognised on the Balance Sheet as right-of-use assets and lease liabilities. This module covers the full lessee accounting model and the impact on key financial ratios.
- Concept, scope, and lease identification under MFRS 16
- The fundamental approaches to lease accounting — lessee model
- Initial and subsequent measurement of right-of-use assets and lease liabilities
- Accounting entries for MFRS 16
- Impact of MFRS 16 on financial position, P&L, and key ratios
- Sales and leaseback arrangements
- How MFRS 16 changes affect financial performance reporting
MFRS 116 governs the recognition and measurement of property, plant, and equipment — the assets that form the backbone of most businesses. This module focuses on correct accounting treatment for asset acquisition, depreciation, and disposal.
- Concept, scope, and recognition criteria under MFRS 116
- Initial and subsequent measurement of PP&E
- Accounting entries for PP&E acquisition and revaluation
- Depreciation methods — calculation and application
- Calculating gain or loss on disposal of fixed assets
- Impact on financial position and profit and loss
MFRS 136 ensures assets are not carried at more than their recoverable amount. Impairment testing is a requirement — but many finance teams lack confidence in the calculation basis and the conditions that trigger it. This module covers both.
- Concept, scope, and recognition criteria under MFRS 136
- Indicators of impairment — when impairment testing is required
- Recoverable amount — Value in Use vs Fair Value less Costs of Disposal
- Basis and calculation of impairment of assets
- Accounting entries for impairment recognition and reversal
- Impact on financial position and profit and loss
MFRS 119 covers a wide range of obligations companies have to employees — from salaries and bonuses to gratuity schemes and post-employment benefits. This module clarifies what must be recognised, measured, and disclosed for each category.
- Concept, scope, and recognition criteria under MFRS 119
- Short-term employee benefits — recognition and measurement
- Post-employment benefits — defined contribution vs defined benefit plans
- Termination benefits — when and how to recognise
- Accounting entries and financial statement impact under MFRS 119
MFRS 112 governs income tax accounting — including the notoriously complex area of deferred tax. This module provides a clear, practical framework for recognising current and deferred tax, with worked examples on how temporary differences arise and how they flow through the financial statements.
- Introduction and scope of MFRS 112
- Current tax — recognition and measurement
- Deferred tax — temporary differences, deferred tax assets and liabilities
- Recognition criteria for deferred tax assets
- Measurement and presentation of income tax in financial statements
- Disclosure requirements under MFRS 112
MFRS 123 sets out the treatment for borrowing costs — specifically, when they must be capitalised as part of a qualifying asset versus expensed in the period incurred. Errors in this area directly affect both the Balance Sheet and P&L. This module provides clarity on the criteria and calculation.
- Introduction and scope of MFRS 123
- Definition of qualifying assets and borrowing costs
- Accounting treatment — capitalisation vs expensing
- Capitalisation rate calculation and commencement/suspension/cessation rules
- Accounting entries under MFRS 123
- Disclosure requirements
Who Should Attend
This workshop is designed for finance and accounting professionals who are directly involved in preparing, reviewing, or auditing financial statements — and who need a structured, applied understanding of current MFRS standards.
Practical Clarity on Standards That Matter
The MFRS 16 module finally clarified how to account for our operating leases on the Balance Sheet. The accounting entries were explained step by step — I came back to work and updated our records the very next day.
I struggled with deferred tax for years. The MFRS 112 section broke it down in a way that finally made sense. The trainer connected the theory directly to how it appears in the financial statements — that made all the difference.
Covering 8 standards in 2 days sounds rushed but it was not. The trainer kept it focused on what matters for our work — recognition, entries, and impact. Pre and post study materials helped us prepare and reinforce what we learned.
* These are representative placeholder testimonials — replace with real participant feedback when available.
Want This Workshop Delivered In-House for Your Finance Team?
We can tailor the content to your company’s industry, reporting structure, and the specific MFRS standards most relevant to your operations. Your team can work through their own real financial data as part of the exercises. Minimum 5 participants. HRD Corp SBL-Khas claimable.
100% HRD Corp Claimable — No Upfront Payment Needed
This 2-day workshop is claimable under the HRD Corp SBL-Khas scheme. If your company is an active HRD Corp contributor, you pay nothing upfront. We guide your HR team through the entire application process — including documentation and submission.
Frequently Asked Questions
Questions we regularly hear from HR managers, L&D teams, and finance professionals when evaluating this workshop.
Is this MFRS training HRD Corp claimable?
+Yes — this 2-day workshop is 100% HRD Corp claimable under the SBL-Khas scheme. KS Training is a registered HRD Corp training provider. Eligible companies pay nothing upfront. We prepare all documentation and guide your HR team through the full application process.
Which MFRS standards are covered in this workshop?
+The workshop covers 8 standards: MFRS 9 (Financial Instruments), MFRS 15 (Revenue from Contracts with Customers), MFRS 16 (Leases), MFRS 116 (Property, Plant and Equipment), MFRS 136 (Impairment of Assets), MFRS 119 (Employee Benefits), MFRS 112 (Income Taxes), and MFRS 123 (Borrowing Costs).
Do participants need prior MFRS knowledge to attend?
+A basic accounting background is assumed — participants should be familiar with financial statements, double-entry bookkeeping, and general accounting concepts. Prior knowledge of MFRS is helpful but not required. The workshop is designed for finance and accounting professionals at executive level and above, including those transitioning from FRS to MFRS.
What is the difference between MFRS and MPERS?
+MFRS applies to public listed entities and their subsidiaries, as well as companies that voluntarily adopt the full standard framework. MPERS (Malaysian Private Entities Reporting Standard) applies to private entities that are not publicly accountable. This workshop focuses on MFRS — the full standard framework used by listed and public-interest entities in Malaysia.
Can this be delivered in-house for our company?
+Yes. In-house sessions are available and can be tailored to your company’s industry, reporting structure, and the MFRS standards most relevant to your operations. Your team can work through exercises using your own financial data. Minimum 5 participants. Contact Rachel at 017-330-2519 to discuss.
Equip Your Finance Team to Apply MFRS with Confidence
Speak to Rachel about the next available run or request an in-house session tailored to your company’s reporting requirements.