Categories: Media ReleasePublished On: 19/01/2021

The Malaysian Institute of Accountants (MIA) is pleased to announce the release of its inaugural e-book as part of its Digital Technology Blueprint implementation plan. In its commitment to continuous self-learning and professional development via digital platforms, the Interactive e-Book of the MIA Illustrative MPERS Financial Statements, with Commentaries and Guidance Notes (MPERS Interactive e-Book) is now launched. MPERS refers to the Malaysian Private Entities Reporting Standard.

“This e-book is part of MIA’s ongoing advocacy to develop the technical and digital competencies of the profession, and to digitalise the profession to ensure its future relevance,” said MIA CEO Dr. Nurmazilah Dato’ Mahzan at the virtual launch of the e-book recently.

The e-book is a digitalised and augmented version of the MIA Illustrative MPERS Financial Statements, with Commentaries and Guidance Notes, written by renowned accountancy expert, educator and author Professor Mr Tan Liong Tong. The original print version was published in 2018 and has been very well received in the market as well as by the accountancy profession.

The e-book is portable and easily accessible as it is available on Windows, Android and iOS and can be accessed from laptops, smartphones and tablets, compared to the physical book that was published in 2018 in an A4 size with over 300 pages. This greatly enhances usability and enables learning anywhere, anytime. To improve the learning experience, the e-book has interactive features such as informative videos, audio commentaries and quizzes that will engage the reader’s attention actively and enhance the reader’s understanding. This e-book is made available as part of MIA’s new e-Library which was launched in July 2020.

“The e-book will be especially relevant in the light of the uncertainty caused by the COVID-19 pandemic which affects every business, including SMEs,” emphasised Dr. Nurmazilah. COVID-19 has accounting implications for SMEs that are reporting using MPERS, which include, among others, impairment of assets, going concern assessment as well as subsequent events. “This e-book will be very helpful in guiding both preparers and auditors to understand and accordingly address the impact of these issues on the MPERS financial statements, especially when many entities are reaching their financial year end,” she added.

In addition to the original content by Prof. Tan, the e-book features the collaborative efforts of MIA’s stakeholders, subject matter experts and internal talent, including Tan Khoon Yeow, Partner, Learning & Development, BDO and Danny Tan, MIA Trainer and Project Manager with MASB on Financial Reporting by Small and Medium Entities.


COVID-19 Financial Reporting Issues for Entities Using MPERS

To support the launch of the e-Book, Prof. Tan, Khoon Yeow, and Danny participated in a panel session on the “Impact of COVID-19 on MPERS Reporting Entities and MPERS Updates”, moderated by Rasmimi Ramli, Deputy Executive Director, Digital Economy, Reporting and Risk, MIA.

The following are some highlights of the panel session:

  • In a snap poll of the participants at the launch, 77.5% ranked Going Concern as the most worrying financial reporting implication of COVID-19, followed by Impairment of Non-Financial Assets (10.2%), Impairment of Financial Assets (4.1%), Subsequent Events (4.1%) and Financial Statement Presentation (4.1%).
  • With the economy in distress due to the COVID-19 pandemic, one of the most crucial tests in financial reporting is the going concern assumption i.e. whether a reporting entity would be able to continue to operate its businesses as a going concern or whether it needs to be liquidated or restructured.
  • When management has decided to shut down or cease business, the financial statements can no longer be prepared on the going concern basis, but must be prepared on the break-up or liquidation basis where assets are measured at net realisable values and liabilities at settlement values.
  • The assessment of the going concern requires judgment. Some of the indicators that a reporting entity might face going concern issues include: current liabilities exceeding current assets; insufficient cash to meet short-term obligations; a high debt-to-equity ratio with debts maturing in the near future; huge accumulated losses; and negative shareholders’ equity i.e. the entity is technically insolvent.
  • Impairment of non-financial assets is subject to the requirements of Section 27 of MPERS and the scope of assets subject to this include inventory, property, plant and equipment, investment property (cost model) as well as intangible assets, among others.
  • Currently, one of the most difficult challenges with regard to impairment of non-financial assets is the confusion of indicators of impairment with events after reporting, or hindsight. It is appropriate to exercise hindsight in assessing going concern. However, a key challenge is to refrain from applying too much hindsight in making that decision on impairment. According to paragraph 27.7 of MPERS, the indication of impairment, whether it is internal or external, must be assessed at that entity’s reporting data such as on 31st December 31.
  • With regards to financial instruments, particularly financial liabilities, accounting challenges have arisen from the unprecedented loan repayment moratorium. Such moratorium does not involve a cash outflow, however, interest on the outstanding loan continues to accrue and will be a finance cost in the profit or loss.

To purchase the e-book and access the e-Library, please visit

Please click  to view the launching gambit of the e-book.