(Tan, and identify the most appropriate framework to

(Tan, 2015) Since the last PERS Standard was issued in
the year of 2003, MASB has no issue any new PERS standards afterward. The PERS
Standards have not been updated even though there are significant changes,
developments and improvements to MFRS in the last 11 years. The gap between
PERS and newer reporting frameworks will become wider in future if the private entities
continue to use PERS. Besides, SMEs with the potential to contribute
significantly to the nation’s economic growth and prepared to access in a global
arena are having an expectation that their financial reporting must be of high
quality given its accountability to the public. Therefore, MASB has prioritized
the updating of an accounting framework for SMEs after convergence with IFRS in
year 2012 (Azmi, 2012). This portrays
MASB play an important and active role continuously in developing a set of
accounting standards which is suitable for the SMEs.

In 2012, MASB started to understand the accounting
needs of constituents and identify the most appropriate framework to replacing
PERS Standard. Moreover, MASB issued a Request for Views (RFV) document which
stated the alternative approaches that MASB is considering then collects
responses from majority of SMEs together with MIA (Azmi, 2012). After considering and analysing the feedbacks
received from public on the Roadmap for Private Entities
Financial Reporting Framework, MASB proposed for a single financial reporting
framework for SMEs due to the lack of support for the initial proposal to stratify SMEs (Azmi, 2013). In
order to reduce the burdens of SMEs to adopt IFRS and align local businesses to
global standards, MASB issued MPERS as a new financial reporting framework for
SMEs which came into force on 1 January 2016. MPERS is practically identical to
IFRS for SMEs issued by IASB except for the requirements on property
development activities (Lee, 2016). MASB established
MPERS Task Force with the purpose to equip the preparers with updated information
and coordinate their transition to MPERS, hence it leads to a smooth implementation
of MPERS (Azmi, 2014).

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Sharing knowledge and
experience

MASB with the
objectives to collaborate with other national standard-setters for the
development of financial reporting standards which are accepted and used
internationally is focusing on knowledge and experiences sharing with other
parties. For instance, MASB published articles related to the current issues or
amendments of accounting standards, hosted a real-time outreach meeting through
video conference on the discussion paper of IASB. Furthermore, MASB offered training
to the Accounting Standards Board of Nepal to assist them for the adoption of
IFRS in Nepal (Azmi, 2013).
The MASB shared experiences through conducting a comprehensive presentation of
the steps it had taken for the convergence with IFRS.