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.
The Companies Act 2016 requires directors to prepare financial statements that give a true and fair view of the company's position and performance and comply with approved accounting standards.
A full set under MPERS or MFRS includes:
- Statement of financial position (balance sheet): assets, liabilities and equity at year end
- Statement of profit or loss and other comprehensive income: revenue, expenses and profit for the year
- Statement of changes in equity: movements in share capital and retained earnings
- Statement of cash flows: where cash came from and went
- Notes: accounting policies, details behind the numbers, related-party disclosures, and contingent liabilities
The statements show prior-year comparatives. Group structures may also need consolidated statements.
Extras that accompany them:
- The directors' report
- The directors' statement and a statutory declaration by the officer responsible for financial management
- The auditor's report, where the company is not audit-exempt (see the audit section)
A trial balance or a tax computation on its own is not a set of financial statements.
Legal basis
- Companies Act 2016, s.248
- Companies Act 2016, s.251
- Companies Act 2016, s.252
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.
- 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.
- 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.
- 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.