(Jan 17): Malaysian Financial Reporting Standard (MFRS) 9 Financial Instruments: Recognition and Measurement, which replaces MFRS 139, will take effect on 1 January 2018. that credit losses are recorded too late in the economic cycle, this new accounting standard will introduce a new impairment model based on expected credit losses, thereby bringing forward the recognition of credit losses. To better gauge the banking industry’s readiness with respect to MFRS 9, RAM Ratings conducted a survey in July-October 2016 among 20 financial institutions in Malaysia. “We view the introduction of MFRS 9 as a prudent move, as it will accelerate the recognition of credit losses. As such, RAM expects most of the domestic banks to be able to manage the impacts of MFRS 9 adoption.

Source: The Edge Markets January 17, 2017 03:02 UTC