What is the difference between MPERS and MFRS?
MFRS is the full set of Malaysian standards, aligned with IFRS, used by listed and regulated entities. MPERS is a shorter, simplified framework based on the IFRS for SMEs standard, designed for private entities. Both give a true and fair view; MPERS has fewer disclosures and simpler rules.
MFRS (Malaysian Financial Reporting Standards)
- Full IFRS-equivalent standards issued by the Malaysian Accounting Standards Board
- Detailed rules and extensive disclosures
- Mandatory for entities with public accountability
MPERS (Malaysian Private Entities Reporting Standard)
- Based on the IFRS for SMEs Standard, with Malaysian adaptations
- A single self-contained standard instead of dozens of separate standards
- Fewer disclosures and simpler treatment for some items, such as goodwill and development costs
- MPERS (2016) applies for periods beginning on or after 1 January 2016; MASB issued a revised MPERS (2025), based on the third edition of the IFRS for SMEs, for annual periods beginning on or after 1 January 2027 (earlier application is permitted), and MPERS (2016) is withdrawn for those periods
Practical differences for a small company:
- Lower preparation cost under MPERS
- Fewer changes when standards are updated
- MFRS may suit companies planning an IPO, a foreign parent that reports under IFRS, or investors who want comparability
Private entities may choose between the two, but must apply the chosen framework in full, not mix them. Check your constitution, loan agreements and investor requirements before choosing.
Legal basis
- Companies Act 2016, s.248
- MASB approved accounting standards
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- How long must a Malaysian company keep its accounting records?A company must keep accounting records for seven years after the transactions they record were completed. For tax, documents must be kept for seven years from the end of the relevant year of assessment. Use whichever period ends later.
- How soon must transactions be recorded in the books?Under section 245 of the Companies Act 2016, entries must be made in the accounting records within 60 days after the transaction is completed. Leaving the books for a full year-end rush is therefore not compliant.
- What do a company's financial statements contain?A company's financial statements normally include a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows and notes with accounting policies. The set must give a true and fair view.
- Who prepares and approves a company's financial statements?Directors are legally responsible for the financial statements. An in-house accountant or external firm often drafts them, but the board approves them by resolution and signs a directors' statement. The statements are then presented to the members.
- Who must use MFRS, and who can use MPERS?A private company that is not required to file financial statements under Securities Commission or Bank Negara law, and is not a subsidiary or associate of, or jointly controlled by, an entity that is, is a private entity and may use MPERS or full MFRS. Other entities must use MFRS.