1

MYANMAR ACCOUNTING STANDARD 1

PRESENTATION OF FINANCIAL STATEMENTS
CONTENTS
paragraphs
OB1ECTIVE 1
SCOPE 26
DEFINITIONS 78A
FINANCIAL STATEMENTS 946
Purpose of financial statements 9
Complete set of financial statements 1014
General features 1546
Fair presentation and compliance with MFRSs 1524
Going concern 2526
Accrual basis o accounting 2!2"
Materialit# and aggregation 2$%1
&setting %2%5
Fre'uenc# o reporting %6%!
(omparati)e inormation %"44
(onsistenc# o presentation 4546
STRUCTURE AND CONTENT 47138
Introduction 4748
Identification of the financial statements 4953
Statement of financial position 5480A
*normation to be presented in the statement o inancial position 545$
(urrent+non,current distinction 6-65
(urrent assets 666"
(urrent liabilities 6$!6
*normation to be presented either in the statement o inancial
position or in the notes
!!"-A
Statement of comprehensive income 81105
*normation to be presented in the statement o comprehensi)e
income
"2"!
.roit or loss or the period """$
&ther comprehensi)e income or the period $-$6
*normation to be presented in the statement o comprehensi)e
income or in the notes
$!1-5
Statement of changes in equity 106110
Statement of cash flows 111
Notes 112138
Structure 112116
/isclosure o accounting policies 11!124
Sources o estimation uncertaint# 1251%%
(apital 1%41%6
.uttable inancial instruments classiied as e'uit# 1%6A
&ther disclosures 1%!1%"
Myanmar Financial Reporting Standards/MAS1
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Myanmar Accounting Standard 1 Presentation of Financial Statements
Objective
1 0his Standard prescribes the basis or presentation o general purpose inancial statements to ensure
comparabilit# both with the entit#1s inancial statements o pre)ious periods and with the inancial
statements o other entities2 *t sets out o)erall re'uirements or the presentation o inancial statements3
guidelines or their structure and minimum re'uirements or their content2
Scope
2 An entity shall apply this Standard in preparing and presenting general purpose financial
statements in accordance with Myanmar Financial Reporting Standards (MFRSs).
% &ther MFRSs set out the recognition3 measurement and disclosure re'uirements or speciic transactions
and other e)ents2
4 0his Standard does not appl# to the structure and content o condensed interim inancial statements
prepared in accordance with MAS %4 Interim Financial Reporting2 4owe)er3 paragraphs 15%5 appl# to
such inancial statements2 0his Standard applies e'uall# to all entities3 including those that present
consolidated inancial statements and those that present separate inancial statements as deined in MAS
2! Consolidated and Separate Financial Statements2
5 0his Standard uses terminolog# that is suitable or proit,oriented entities3 including public sector business
entities2 * entities with not,or,proit acti)ities in the pri)ate sector or the public sector appl# this
Standard3 the# ma# need to amend the descriptions used or particular line items in the inancial statements
and or the inancial statements themsel)es2
6 Similarl#3 entities that do not ha)e e'uit# as deined in MAS %2 Financial Instruments: Presentation 5eg
some mutual unds6 and entities whose share capital is not e'uit# 5eg some co,operati)e entities6 ma# need
to adapt the inancial statement presentation o members1 or unitholders1 interests2
Definitions
7 The following terms are used in this Standard with the meanings specified:
General purpose financial statements (referred to as financial statements`) are those intended to
meet the needs of users who are not in a position to require an entity to prepare reports tailored to
their particular information needs.
Impracticable Applying a requirement is impracticable when the entity cannot apply it after making
every reasonable effort to do so.
Myanmar Financial Reportin Stan!ar!s "MFRSs# are Standards and Interpretations adopted by the
Myanmar Accountancy Council (MAC). They comprise:
(a) Myanmar Financial Reporting Standards;
(b) Myanmar Accounting Standards; and
(c) Interpretations developed by the Myanmar Financial Reporting Interpretations Committee
(MFRIC) or the former Standing Interpretations Committee (SIC).
Material Omissions or misstatements of items are material if they could, individually or collectively,
influence the economic decisions that users make on the basis of the financial statements. Materiality
depends on the size and nature of the omission or misstatement judged in the surrounding
circumstances. The size or nature of the item, or a combination of both, could be the determining
factor.
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Assessing whether an omission or misstatement could inluence economic decisions o users3 and so be
material3 re'uires consideration o the characteristics o those users2 0he Framework for the Preparation
and Presentation of Financial Statements states in paragraph 25 that 7users are assumed to ha)e a
reasonable 8nowledge o business and economic acti)ities and accounting and a willingness to stud# the
inormation with reasonable diligence21 0hereore3 the assessment needs to ta8e into account how users
with such attributes could reasonabl# be e9pected to be inluenced in ma8ing economic decisions2
Notes contain information in addition to that presented in the statement of financial position,
statement of comprehensive income, separate income statement (if presented), statement of changes
in equity and statement of cash flows. Notes provide narrative descriptions or disaggregations of
items presented in those statements and information about items that do not qualify for recognition
in those statements.
Ot$er compre$ensi%e income comprises items of income and expense (including reclassification
adjustments) that are not recognised in profit or loss as required or permitted by other MFRSs.
0he components o other comprehensi)e income include:
5a6 changes in re)aluation surplus 5see MAS 16 Property, Plant and Equipment and MAS %"
Intangile !ssets6;
5b6 actuarial gains and losses on deined beneit plans recognised in accordance with paragraph $%A
o MAS 1$ Employee "enefits;
5c6 gains and losses arising rom translating the inancial statements o a oreign operation 5see MAS
21 #he Effects of Changes in Foreign E$change Rates6;
5d6 gains and losses on remeasuring a)ailable,or,sale inancial assets 5see MAS %$ Financial
Instruments: Recognition and %easurement6;
5e6 the eecti)e portion o gains and losses on hedging instruments in a cash low hedge 5see MAS
%$62
O&ners are holders of instruments classified as equity.
Profit or loss is the total of income less expenses, excluding the components of other comprehensive
income.
Reclassification a!'ustments are amounts reclassified to profit or loss in the current period that were
recognised in other comprehensive income in the current or previous periods.
Total compre$ensi%e income is the change in equity during a period resulting from transactions and
other events, other than those changes resulting from transactions with owners in their capacity as
owners.
0otal comprehensi)e income comprises all components o 7proit or loss1 and o 7other comprehensi)e
income12
" Although this Standard uses the terms 7other comprehensi)e income13 7proit or loss1 and 7total
comprehensi)e income13 an entit# ma# use other terms to describe the totals as long as the meaning is
clear2 For e9ample3 an entit# ma# use the term 7net income1 to describe proit or loss2
"A 0he ollowing terms are described in MAS %2 Financial Instruments: Presentation and are used in this
Standard with the meaning speciied in MAS %2:
5a6 puttable inancial instrument classiied as an e'uit# instrument 5described in paragraphs 16A and
16< o MAS %26
5b6 an instrument that imposes on the entit# an obligation to deli)er to another part# a pro rata share
o the net assets o the entit# onl# on li'uidation and is classiied as an e'uit# instrument
5described in paragraphs 16( and 16/ o MAS %262
Financial statements
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Purpose of financial statements
$ Financial statements are a structured representation o the inancial position and inancial perormance o
an entit#2 0he ob=ecti)e o inancial statements is to pro)ide inormation about the inancial position3
inancial perormance and cash lows o an entit# that is useul to a wide range o users in ma8ing
economic decisions2 Financial statements also show the results o the management1s stewardship o the
resources entrusted to it2 0o meet this ob=ecti)e3 inancial statements pro)ide inormation about an entit#1s:
5a6 assets;
5b6 liabilities;
5c6 e'uit#;
5d6 income and e9penses3 including gains and losses;
5e6 contributions b# and distributions to owners in their capacit# as owners; and
56 cash lows2
0his inormation3 along with other inormation in the notes3 assists users o inancial statements in
predicting the entit#1s uture cash lows and3 in particular3 their timing and certaint#2
Complete set of financial statements
10 A complete set of financial statements comprises:
(a) a statement of financial position as at the end of the period;
(b) a statement of comprehensive income for the period;
(c) a statement of changes in equity for the period;
(d) a statement of cash flows for the period;
(e) notes, comprising a summary of significant accounting policies and other explanatory
information; and
(f) a statement of financial position as at the beginning of the earliest comparative period
when an entity applies an accounting policy retrospectively or makes a retrospective
restatement of items in its financial statements, or when it reclassifies items in its financial
statements.
An entity may use titles for the statements other than those used in this Standard.
11 An entity shall present with equal prominence all of the financial statements in a complete set of
financial statements.
12 As permitted b# paragraph "13 an entit# ma# present the components o proit or loss either as part o a
single statement o comprehensi)e income or in a separate income statement2 >hen an income statement
is presented it is part o a complete set o inancial statements and shall be displa#ed immediatel# beore
the statement o comprehensi)e income2
1% Man# entities present3 outside the inancial statements3 a inancial re)iew b# management that describes
and e9plains the main eatures o the entit#1s inancial perormance and inancial position3 and the
principal uncertainties it aces2 Such a report ma# include a re)iew o:
5a6 the main actors and inluences determining inancial perormance3 including changes in the
en)ironment in which the entit# operates3 the entit#1s response to those changes and their eect3
and the entit#1s polic# or in)estment to maintain and enhance inancial perormance3 including
its di)idend polic#;
5b6 the entit#1s sources o unding and its targeted ratio o liabilities to e'uit#; and
5c6 the entit#1s resources not recognised in the statement o inancial position in accordance with
MFRSs2
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14 Man# entities also present3 outside the inancial statements3 reports and statements such as en)ironmental
reports and )alue added statements3 particularl# in industries in which en)ironmental actors are
signiicant and when emplo#ees are regarded as an important user group2 Reports and statements presented
outside inancial statements are outside the scope o MFRSs2
General features
Fair presentation and compliance with MFRSs
15 Financial statements shall present fairly the financial position, financial performance and cash flows
of an entity. Fair presentation requires the faithful representation of the effects of transactions,
other events and conditions in accordance with the definitions and recognition criteria for assets,
liabilities, income and expenses set out in the Frame&or(. The application of MFRSs, with additional
disclosure when necessary, is presumed to result in financial statements that achieve a fair
presentation.
16 An entity whose financial statements comply with MFRSs shall make an explicit and unreserved
statement of such compliance in the notes. An entity shall not describe financial statements as
complying with MFRSs unless they comply with all the requirements of MFRSs.
1! *n )irtuall# all circumstances3 an entit# achie)es a air presentation b# compliance with applicable MFRSs2
A air presentation also re'uires an entit#:
5a6 to select and appl# accounting policies in accordance with MAS " !ccounting Policies, Changes
in !ccounting Estimates and Errors2 MAS " sets out a hierarch# o authoritati)e guidance that
management considers in the absence o an MFRS that speciicall# applies to an item2
5b6 to present inormation3 including accounting policies3 in a manner that pro)ides rele)ant3
reliable3 comparable and understandable inormation2
5c6 to pro)ide additional disclosures when compliance with the speciic re'uirements in MFRSs is
insuicient to enable users to understand the impact o particular transactions3 other e)ents and
conditions on the entit#1s inancial position and inancial perormance2
18 An entity cannot rectify inappropriate accounting policies either by disclosure of the accounting
policies used or by notes or explanatory material.
19 In the extremely rare circumstances in which management concludes that compliance with a
requirement in an MFRS would be so misleading that it would conflict with the objective of financial
statements set out in the Frame&or(, the entity shall depart from that requirement in the manner set
out in paragraph 20 if the relevant regulatory framework requires, or otherwise does not prohibit,
such a departure.
20 When an entity departs from a requirement of an MFRS in accordance with paragraph 19, it shall
disclose:
(a) that management has concluded that the financial statements present fairly the entity`s
financial position, financial performance and cash flows;
(b) that it has complied with applicable MFRSs, except that it has departed from a particular
requirement to achieve a fair presentation;
(c) the title of the MFRS from which the entity has departed, the nature of the departure,
including the treatment that the MFRS would require, the reason why that treatment
would be so misleading in the circumstances that it would conflict with the objective of
financial statements set out in the Frame&or(, and the treatment adopted; and
(d) for each period presented, the financial effect of the departure on each item in the financial
statements that would have been reported in complying with the requirement.
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21 When an entity has departed from a requirement of an MFRS in a prior period, and that departure
affects the amounts recognised in the financial statements for the current period, it shall make the
disclosures set out in paragraph 20(c) and (d).
22 .aragraph 21 applies3 or e9ample3 when an entit# departed in a prior period rom a re'uirement in an
MFRS or the measurement o assets or liabilities and that departure aects the measurement o changes in
assets and liabilities recognised in the current period1s inancial statements2
23 In the extremely rare circumstances in which management concludes that compliance with a
requirement in an MFRS would be so misleading that it would conflict with the objective of financial
statements set out in the Frame&or(, but the relevant regulatory framework prohibits departure
from the requirement, the entity shall, to the maximum extent possible, reduce the perceived
misleading aspects of compliance by disclosing:
(a) the title of the MFRS in question, the nature of the requirement, and the reason why
management has concluded that complying with that requirement is so misleading in the
circumstances that it conflicts with the objective of financial statements set out in the
Frame&or(; and
(b) for each period presented, the adjustments to each item in the financial statements that
management has concluded would be necessary to achieve a fair presentation.
24 For the purpose o paragraphs 1$2%3 an item o inormation would conlict with the ob=ecti)e o inancial
statements when it does not represent aithull# the transactions3 other e)ents and conditions that it either
purports to represent or could reasonabl# be e9pected to represent and3 conse'uentl#3 it would be li8el# to
inluence economic decisions made b# users o inancial statements2 >hen assessing whether compl#ing
with a speciic re'uirement in an MFRS would be so misleading that it would conlict with the ob=ecti)e o
inancial statements set out in the Framework3 management considers:
5a6 wh# the ob=ecti)e o inancial statements is not achie)ed in the particular circumstances; and
5b6 how the entit#1s circumstances dier rom those o other entities that compl# with the
re'uirement2 * other entities in similar circumstances compl# with the re'uirement3 there is a
rebuttable presumption that the entit#1s compliance with the re'uirement would not be so
misleading that it would conlict with the ob=ecti)e o inancial statements set out in the
Framework2
Going concern
25 When preparing financial statements, management shall make an assessment of an entity`s ability to
continue as a going concern. An entity shall prepare financial statements on a going concern basis
unless management either intends to liquidate the entity or to cease trading, or has no realistic
alternative but to do so. When management is aware, in making its assessment, of material
uncertainties related to events or conditions that may cast significant doubt upon the entity`s ability
to continue as a going concern, the entity shall disclose those uncertainties. When an entity does not
prepare financial statements on a going concern basis, it shall disclose that fact, together with the
basis on which it prepared the financial statements and the reason why the entity is not regarded as
a going concern.
26 *n assessing whether the going concern assumption is appropriate3 management ta8es into account all
a)ailable inormation about the uture3 which is at least3 but is not limited to3 twel)e months rom the end
o the reporting period2 0he degree o consideration depends on the acts in each case2 >hen an entit# has
a histor# o proitable operations and read# access to inancial resources3 the entit# ma# reach a conclusion
that the going concern basis o accounting is appropriate without detailed anal#sis2 *n other cases3
management ma# need to consider a wide range o actors relating to current and e9pected proitabilit#3
debt repa#ment schedules and potential sources o replacement inancing beore it can satis# itsel that the
going concern basis is appropriate2
Accrual basis of accounting
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27 An entity shall prepare its financial statements, except for cash flow information, using the accrual
basis of accounting.
2" >hen the accrual basis o accounting is used3 an entit# recognises items as assets3 liabilities3 e'uit#3
income and e9penses 5the elements o inancial statements6 when the# satis# the deinitions and
recognition criteria or those elements in the Framework2
Materiality and aggregation
29 An entity shall present separately each material class of similar items. An entity shall present
separately items of a dissimilar nature or function unless they are immaterial.
%- Financial statements result rom processing large numbers o transactions or other e)ents that are
aggregated into classes according to their nature or unction2 0he inal stage in the process o aggregation
and classiication is the presentation o condensed and classiied data3 which orm line items in the
inancial statements2 * a line item is not indi)iduall# material3 it is aggregated with other items either in
those statements or in the notes2 An item that is not suicientl# material to warrant separate presentation in
those statements ma# warrant separate presentation in the notes2
%1 An entit# need not pro)ide a speciic disclosure re'uired b# an MFRS i the inormation is not material2
Offsetting
32 An entity shall not offset assets and liabilities or income and expenses, unless required or permitted
by an MFRS.
%% An entit# reports separatel# both assets and liabilities3 and income and e9penses2 &setting in the
statements o comprehensi)e income or inancial position or in the separate income statement 5i
presented63 e9cept when osetting relects the substance o the transaction or other e)ent3 detracts rom the
abilit# o users both to understand the transactions3 other e)ents and conditions that ha)e occurred and to
assess the entit#1s uture cash lows2 Measuring assets net o )aluation allowances?or e9ample3
obsolescence allowances on in)entories and doubtul debts allowances on recei)ables?is not osetting2
%4 MAS 1" Re&enue deines re)enue and re'uires an entit# to measure it at the air )alue o the consideration
recei)ed or recei)able3 ta8ing into account the amount o an# trade discounts and )olume rebates the entit#
allows2 An entit# underta8es3 in the course o its ordinar# acti)ities3 other transactions that do not generate
re)enue but are incidental to the main re)enue,generating acti)ities2 An entit# presents the results o such
transactions3 when this presentation relects the substance o the transaction or other e)ent3 b# netting an#
income with related e9penses arising on the same transaction2 For e9ample:
5a6 an entit# presents gains and losses on the disposal o non,current assets3 including in)estments
and operating assets3 b# deducting rom the proceeds on disposal the carr#ing amount o the
asset and related selling e9penses; and
5b6 an entit# ma# net e9penditure related to a pro)ision that is recognised in accordance with MAS
%! Pro&isions, Contingent 'iailities and Contingent !ssets and reimbursed under a contractual
arrangement with a third part# 5or e9ample3 a supplier1s warrant# agreement6 against the related
reimbursement2
%5 *n addition3 an entit# presents on a net basis gains and losses arising rom a group o similar transactions3
or e9ample3 oreign e9change gains and losses or gains and losses arising on inancial instruments held or
trading2 4owe)er3 an entit# presents such gains and losses separatel# i the# are material2
Frequency of reporting
36 An entity shall present a complete set of financial statements (including comparative information) at
least annually. When an entity changes the end of its reporting period and presents financial
statements for a period longer or shorter than one year, an entity shall disclose, in addition to the
period covered by the financial statements:
Myanmar Financial Reporting Standards/MAS1
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(a) the reason for using a longer or shorter period, and
(b) the fact that amounts presented in the financial statements are not entirely comparable.
%! @ormall#3 an entit# consistentl# prepares inancial statements or a one,#ear period2 4owe)er3 or practical
reasons3 some entities preer to report3 or e9ample3 or a 52,wee8 period2 0his Standard does not preclude
this practice2
Comparative information
38 Except when MFRSs permit or require otherwise, an entity shall disclose comparative information
in respect of the previous period for all amounts reported in the current period`s financial
statements. An entity shall include comparative information for narrative and descriptive
information when it is relevant to an understanding of the current period`s financial statements.
%$ An entit# disclosing comparati)e inormation shall present3 as a minimum3 two statements o inancial
position3 two o each o the other statements3 and related notes2 >hen an entit# applies an accounting
polic# retrospecti)el# or ma8es a retrospecti)e restatement o items in its inancial statements or when it
reclassiies items in its inancial statements3 it shall present3 as a minimum3 three statements o inancial
position3 two o each o the other statements3 and related notes2 An entit# presents statements o inancial
position as at:
5a6 the end o the current period3
5b6 the end o the pre)ious period 5which is the same as the beginning o the current period63 and
5c6 the beginning o the earliest comparati)e period2
4- *n some cases3 narrati)e inormation pro)ided in the inancial statements or the pre)ious period5s6
continues to be rele)ant in the current period2 For e9ample3 an entit# discloses in the current period details
o a legal dispute whose outcome was uncertain at the end o the immediatel# preceding reporting period
and that is #et to be resol)ed2 Asers beneit rom inormation that the uncertaint# e9isted at the end o the
immediatel# preceding reporting period3 and about the steps that ha)e been ta8en during the period to
resol)e the uncertaint#2
41 When the entity changes the presentation or classification of items in its financial statements, the
entity shall reclassify comparative amounts unless reclassification is impracticable. When the entity
reclassifies comparative amounts, the entity shall disclose:
(a) the nature of the reclassification;
(b) the amount of each item or class of items that is reclassified; and
(c) the reason for the reclassification.
42 When it is impracticable to reclassify comparative amounts, an entity shall disclose:
(a) the reason for not reclassifying the amounts, and
(b) the nature of the adjustments that would have been made if the amounts had been
reclassified.
4% Bnhancing the inter,period comparabilit# o inormation assists users in ma8ing economic decisions3
especiall# b# allowing the assessment o trends in inancial inormation or predicti)e purposes2 *n some
circumstances3 it is impracticable to reclassi# comparati)e inormation or a particular prior period to
achie)e comparabilit# with the current period2 For e9ample3 an entit# ma# not ha)e collected data in the
prior period5s6 in a wa# that allows reclassiication3 and it ma# be impracticable to recreate the
inormation2
44 MAS " sets out the ad=ustments to comparati)e inormation re'uired when an entit# changes an
accounting polic# or corrects an error2
Consistency of presentation
Myanmar Financial Reporting Standards/MAS1
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45 An entity shall retain the presentation and classification of items in the financial statements from
one period to the next unless:
(a) it is apparent, following a significant change in the nature of the entity`s operations or a
review of its financial statements, that another presentation or classification would be more
appropriate having regard to the criteria for the selection and application of accounting
policies in MAS 8; or
(b) an MFRS requires a change in presentation.
46 For e9ample3 a signiicant ac'uisition or disposal3 or a re)iew o the presentation o the inancial
statements3 might suggest that the inancial statements need to be presented dierentl#2 An entit# changes
the presentation o its inancial statements onl# i the changed presentation pro)ides inormation that is
reliable and more rele)ant to users o the inancial statements and the re)ised structure is li8el# to
continue3 so that comparabilit# is not impaired2 >hen ma8ing such changes in presentation3 an entit#
reclassiies its comparati)e inormation in accordance with paragraphs 41 and 422
Structure and content
Introduction
4! 0his Standard re'uires particular disclosures in the statement o inancial position or o comprehensi)e
income3 in the separate income statement 5i presented63 or in the statement o changes in e'uit# and
re'uires disclosure o other line items either in those statements or in the notes2 MAS ! Statement of Cash
Flows sets out re'uirements or the presentation o cash low inormation2
4" 0his Standard sometimes uses the term 7disclosure1 in a broad sense3 encompassing items presented in the
inancial statements2 /isclosures are also re'uired b# other MFRSs2 Anless speciied to the contrar#
elsewhere in this Standard or in another MFRS3 such disclosures ma# be made in the inancial statements2
Identification of the financial statements
49 An entity shall clearly identify the financial statements and distinguish them from other information
in the same published document.
5- MFRSs appl# onl# to inancial statements3 and not necessaril# to other inormation presented in an annual
report3 a regulator# iling3 or another document2 0hereore3 it is important that users can distinguish
inormation that is prepared using MFRSs rom other inormation that ma# be useul to users but is not the
sub=ect o those re'uirements2
51 An entity shall clearly identify each financial statement and the notes. In addition, an entity shall
display the following information prominently, and repeat it when necessary for the information
presented to be understandable:
(a) the name of the reporting entity or other means of identification, and any change in that
information from the end of the preceding reporting period;
(b) whether the financial statements are of an individual entity or a group of entities;
(c) the date of the end of the reporting period or the period covered by the set of financial
statements or notes;
(d) the presentation currency, as defined in MAS 21; and
(e) the level of rounding used in presenting amounts in the financial statements.
52 An entit# meets the re'uirements in paragraph 51 b# presenting appropriate headings or pages3
statements3 notes3 columns and the li8e2 Cudgement is re'uired in determining the best wa# o presenting
such inormation2 For e9ample3 when an entit# presents the inancial statements electronicall#3 separate
pages are not alwa#s used; an entit# then presents the abo)e items to ensure that the inormation included
in the inancial statements can be understood2
Myanmar Financial Reporting Standards/MAS1
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5% An entit# oten ma8es inancial statements more understandable b# presenting inormation in thousands or
millions o units o the presentation currenc#2 0his is acceptable as long as the entit# discloses the le)el o
rounding and does not omit material inormation2
Statement of financial position
Information to be presented in the statement of financial position
54 As a minimum, the statement of financial position shall include line items that present the following
amounts:
(a) property, plant and equipment;
(b) investment property;
(c) intangible assets;
(d) financial assets (excluding amounts shown under (e), (h) and (i));
(e) investments accounted for using the equity method;
(f) biological assets;
(g) inventories;
(h) trade and other receivables;
(i) cash and cash equivalents;
(j) the total of assets classified as held for sale and assets included in disposal groups classified
as held for sale in accordance with MFRS 5 Non)current Assets *el! for Sale an!
+iscontinue! Operations;
(k) trade and other payables;
(l) provisions;
(m) financial liabilities (excluding amounts shown under (k) and (l));
(n) liabilities and assets for current tax, as defined in MAS 12 Income Ta,es;
(o) deferred tax liabilities and deferred tax assets, as defined in MAS 12;
(p) liabilities included in disposal groups classified as held for sale in accordance with MFRS 5;
(q) non-controlling interests, presented within equity; and
(r) issued capital and reserves attributable to owners of the parent.
55 An entity shall present additional line items, headings and subtotals in the statement of financial
position when such presentation is relevant to an understanding of the entity`s financial position.
56 When an entity presents current and non-current assets, and current and non-current liabilities, as
separate classifications in its statement of financial position, it shall not classify deferred tax assets
(liabilities) as current assets (liabilities).
5! 0his Standard does not prescribe the order or ormat in which an entit# presents items2 .aragraph 54
simpl# lists items that are suicientl# dierent in nature or unction to warrant separate presentation in the
statement o inancial position2 *n addition:
5a6 line items are included when the siDe3 nature or unction o an item or aggregation o similar
items is such that separate presentation is rele)ant to an understanding o the entit#1s inancial
position; and
5b6 the descriptions used and the ordering o items or aggregation o similar items ma# be amended
according to the nature o the entit# and its transactions3 to pro)ide inormation that is rele)ant to
an understanding o the entit#1s inancial position2 For e9ample3 a inancial institution ma#
Myanmar Financial Reporting Standards/MAS1
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amend the abo)e descriptions to pro)ide inormation that is rele)ant to the operations o a
inancial institution2
5" An entit# ma8es the =udgement about whether to present additional items separatel# on the basis o an
assessment o:
5a6 the nature and li'uidit# o assets;
5b6 the unction o assets within the entit#; and
5c6 the amounts3 nature and timing o liabilities2
5$ 0he use o dierent measurement bases or dierent classes o assets suggests that their nature or unction
diers and3 thereore3 that an entit# presents them as separate line items2 For e9ample3 dierent classes o
propert#3 plant and e'uipment can be carried at cost or at re)alued amounts in accordance with MAS 162
Current/non-current distinction
60 An entity shall present current and non-current assets, and current and non-current liabilities, as
separate classifications in its statement of financial position in accordance with paragraphs 6676
except when a presentation based on liquidity provides information that is reliable and more
relevant. When that exception applies, an entity shall present all assets and liabilities in order of
liquidity.
61 Whichever method of presentation is adopted, an entity shall disclose the amount expected to be
recovered or settled after more than twelve months for each asset and liability line item that
combines amounts expected to be recovered or settled:
(a) no more than twelve months after the reporting period, and
(b) more than twelve months after the reporting period.
62 >hen an entit# supplies goods or ser)ices within a clearl# identiiable operating c#cle3 separate
classiication o current and non,current assets and liabilities in the statement o inancial position pro)ides
useul inormation b# distinguishing the net assets that are continuousl# circulating as wor8ing capital
rom those used in the entit#1s long,term operations2 *t also highlights assets that are e9pected to be
realised within the current operating c#cle3 and liabilities that are due or settlement within the same
period2
6% For some entities3 such as inancial institutions3 a presentation o assets and liabilities in increasing or
decreasing order o li'uidit# pro)ides inormation that is reliable and more rele)ant than a current+non,
current presentation because the entit# does not suppl# goods or ser)ices within a clearl# identiiable
operating c#cle2
64 *n appl#ing paragraph 6-3 an entit# is permitted to present some o its assets and liabilities using a
current+non,current classiication and others in order o li'uidit# when this pro)ides inormation that is
reliable and more rele)ant2 0he need or a mi9ed basis o presentation might arise when an entit# has
di)erse operations2
65 *normation about e9pected dates o realisation o assets and liabilities is useul in assessing the li'uidit#
and sol)enc# o an entit#2 MFRS ! Financial Instruments: (isclosures re'uires disclosure o the maturit#
dates o inancial assets and inancial liabilities2 Financial assets include trade and other recei)ables3 and
inancial liabilities include trade and other pa#ables2 *normation on the e9pected date o reco)er# o non,
monetar# assets such as in)entories and e9pected date o settlement or liabilities such as pro)isions is also
useul3 whether assets and liabilities are classiied as current or as non,current2 For e9ample3 an entit#
discloses the amount o in)entories that are e9pected to be reco)ered more than twel)e months ater the
reporting period2
Current assets
66 An entity shall classify an asset as current when:
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(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the reporting period; or
(d) the asset is cash or a cash equivalent (as defined in MAS 7) unless the asset is restricted
from being exchanged or used to settle a liability for at least twelve months after the
reporting period.
An entity shall classify all other assets as non-current.
6! 0his Standard uses the term 7non,current1 to include tangible3 intangible and inancial assets o a long,term
nature2 *t does not prohibit the use o alternati)e descriptions as long as the meaning is clear2
6" 0he operating c#cle o an entit# is the time between the ac'uisition o assets or processing and their
realisation in cash or cash e'ui)alents2 >hen the entit#1s normal operating c#cle is not clearl# identiiable3
it is assumed to be twel)e months2 (urrent assets include assets 5such as in)entories and trade recei)ables6
that are sold3 consumed or realised as part o the normal operating c#cle e)en when the# are not e9pected
to be realised within twel)e months ater the reporting period2 (urrent assets also include assets held
primaril# or the purpose o trading 5e9amples include some inancial assets classiied as held or trading
in accordance with MAS %$6 and the current portion o non,current inancial assets2
Current liabilities
69 An entity shall classify a liability as current when:
(a) it expects to settle the liability in its normal operating cycle;
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within twelve months after the reporting period; or
(d) the entity does not have an unconditional right to defer settlement of the liability for at
least twelve months after the reporting period.
An entity shall classify all other liabilities as non-current.
!- Some current liabilities3 such as trade pa#ables and some accruals or emplo#ee and other operating costs3
are part o the wor8ing capital used in the entit#1s normal operating c#cle2 An entit# classiies such
operating items as current liabilities e)en i the# are due to be settled more than twel)e months ater the
reporting period2 0he same normal operating c#cle applies to the classiication o an entit#1s assets and
liabilities2 >hen the entit#1s normal operating c#cle is not clearl# identiiable3 it is assumed to be twel)e
months2
!1 &ther current liabilities are not settled as part o the normal operating c#cle3 but are due or settlement
within twel)e months ater the reporting period or held primaril# or the purpose o trading2 B9amples are
some inancial liabilities classiied as held or trading in accordance with MAS %$3 ban8 o)erdrats3 and
the current portion o non,current inancial liabilities3 di)idends pa#able3 income ta9es and other non,trade
pa#ables2 Financial liabilities that pro)ide inancing on a long,term basis 5ie are not part o the wor8ing
capital used in the entit#1s normal operating c#cle6 and are not due or settlement within twel)e months
ater the reporting period are non,current liabilities3 sub=ect to paragraphs !4 and !52
!2 An entit# classiies its inancial liabilities as current when the# are due to be settled within twel)e months
ater the reporting period3 e)en i:
5a6 the original term was or a period longer than twel)e months3 and
5b6 an agreement to reinance3 or to reschedule pa#ments3 on a long,term basis is completed ater the
reporting period and beore the inancial statements are authorised or issue2
!% * an entit# e9pects3 and has the discretion3 to reinance or roll o)er an obligation or at least twel)e
months ater the reporting period under an e9isting loan acilit#3 it classiies the obligation as non,current3
e)en i it would otherwise be due within a shorter period2 4owe)er3 when reinancing or rolling o)er the
Myanmar Financial Reporting Standards/MAS1
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obligation is not at the discretion o the entit# 5or e9ample3 there is no arrangement or reinancing63 the
entit# does not consider the potential to reinance the obligation and classiies the obligation as current2
!4 >hen an entit# breaches a pro)ision o a long,term loan arrangement on or beore the end o the reporting
period with the eect that the liabilit# becomes pa#able on demand3 it classiies the liabilit# as current3
e)en i the lender agreed3 ater the reporting period and beore the authorisation o the inancial statements
or issue3 not to demand pa#ment as a conse'uence o the breach2 An entit# classiies the liabilit# as
current because3 at the end o the reporting period3 it does not ha)e an unconditional right to deer its
settlement or at least twel)e months ater that date2
!5 4owe)er3 an entit# classiies the liabilit# as non,current i the lender agreed b# the end o the reporting
period to pro)ide a period o grace ending at least twel)e months ater the reporting period3 within which
the entit# can recti# the breach and during which the lender cannot demand immediate repa#ment2
!6 *n respect o loans classiied as current liabilities3 i the ollowing e)ents occur between the end o the
reporting period and the date the inancial statements are authorised or issue3 those e)ents are disclosed as
non,ad=usting e)ents in accordance with MAS 1- E&ents after the Reporting Period:
5a6 reinancing on a long,term basis;
5b6 rectiication o a breach o a long,term loan arrangement; and
5c6 the granting b# the lender o a period o grace to recti# a breach o a long,term loan
arrangement ending at least twel)e months ater the reporting period2
Information to be presented either in the statement of financial position or in the notes
77 An entity shall disclose, either in the statement of financial position or in the notes, further
subclassifications of the line items presented, classified in a manner appropriate to the entity`s
operations.
!" 0he detail pro)ided in subclassiications depends on the re'uirements o MFRSs and on the siDe3 nature
and unction o the amounts in)ol)ed2 An entit# also uses the actors set out in paragraph 5" to decide the
basis o subclassiication2 0he disclosures )ar# or each item3 or e9ample:
5a6 items o propert#3 plant and e'uipment are disaggregated into classes in accordance with MAS
16;
5b6 recei)ables are disaggregated into amounts recei)able rom trade customers3 recei)ables rom
related parties3 prepa#ments and other amounts;
5c6 in)entories are disaggregated3 in accordance with MAS 2 In&entories3 into classiications such as
merchandise3 production supplies3 materials3 wor8 in progress and inished goods;
5d6 pro)isions are disaggregated into pro)isions or emplo#ee beneits and other items; and
5e6 e'uit# capital and reser)es are disaggregated into )arious classes3 such as paid,in capital3 share
premium and reser)es2
79 An entity shall disclose the following, either in the statement of financial position or the statement of
changes in equity, or in the notes:
(a) for each class of share capital:
(i) the number of shares authorised;
(ii) the number of shares issued and fully paid, and issued but not fully paid;
(iii) par value per share, or that the shares have no par value;
(iv) a reconciliation of the number of shares outstanding at the beginning and at the
end of the period;
(v) the rights, preferences and restrictions attaching to that class including
restrictions on the distribution of dividends and the repayment of capital;
(vi) shares in the entity held by the entity or by its subsidiaries or associates; and
Myanmar Financial Reporting Standards/MAS1
14
(vii) shares reserved for issue under options and contracts for the sale of shares,
including terms and amounts; and
(b) a description of the nature and purpose of each reserve within equity.
80 An entity without share capital, such as a partnership or trust, shall disclose information equivalent
to that required by paragraph 79(a), showing changes during the period in each category of equity
interest, and the rights, preferences and restrictions attaching to each category of equity interest.
80A If an entity has reclassified
(a) a puttable financial instrument classified as an equity instrument, or
(b) an instrument that imposes on the entity an obligation to deliver to another party a pro
rata share of the net assets of the entity only on liquidation and is classified as an equity
instrument
between financial liabilities and equity, it shall disclose the amount reclassified into and out of each
category (financial liabilities or equity), and the timing and reason for that reclassification.
Statement of comprehensive income
81 An entity shall present all items of income and expense recognised in a period:
(a) in a single statement of comprehensive income, or
(b) in two statements: a statement displaying components of profit or loss (separate income
statement) and a second statement beginning with profit or loss and displaying components
of other comprehensive income (statement of comprehensive income).
Information to be presented in the statement of comprehensive income
82 As a minimum, the statement of comprehensive income shall include line items that present the
following amounts for the period:
(a) revenue;
(b) finance costs;
(c) share of the profit or loss of associates and joint ventures accounted for using the equity
method;
(d) tax expense;
(e) a single amount comprising the total of:
(i) the post-tax profit or loss of discontinued operations and
(ii) the post-tax gain or loss recognised on the measurement to fair value less costs to
sell or on the disposal of the assets or disposal group(s) constituting the
discontinued operation;
(f) profit or loss;
(g) each component of other comprehensive income classified by nature (excluding amounts in
(h));
(h) share of the other comprehensive income of associates and joint ventures accounted for
using the equity method; and
(i) total comprehensive income.
83 An entity shall disclose the following items in the statement of comprehensive income as allocations
for the period:
Myanmar Financial Reporting Standards/MAS1
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(a) profit or loss for the period attributable to:
(i) non-controlling interests, and
(ii) owners of the parent.
(b) total comprehensive income for the period attributable to:
(i) non-controlling interests, and
(ii) owners of the parent.
84 An entity may present in a separate income statement (see paragraph 81) the line items in
paragraph 82(a)(f) and the disclosures in paragraph 83(a).
85 An entity shall present additional line items, headings and subtotals in the statement of
comprehensive income and the separate income statement (if presented), when such presentation is
relevant to an understanding of the entity`s financial performance.
"6 <ecause the eects o an entit#1s )arious acti)ities3 transactions and other e)ents dier in re'uenc#3
potential or gain or loss and predictabilit#3 disclosing the components o inancial perormance assists
users in understanding the inancial perormance achie)ed and in ma8ing pro=ections o uture inancial
perormance2 An entit# includes additional line items in the statement o comprehensi)e income and in the
separate income statement 5i presented63 and it amends the descriptions used and the ordering o items
when this is necessar# to e9plain the elements o inancial perormance2 An entit# considers actors
including materialit# and the nature and unction o the items o income and e9pense2 For e9ample3 a
inancial institution ma# amend the descriptions to pro)ide inormation that is rele)ant to the operations o
a inancial institution2 An entit# does not oset income and e9pense items unless the criteria in paragraph
%2 are met2
87 An entity shall not present any items of income or expense as extraordinary items, in the statement
of comprehensive income or the separate income statement (if presented), or in the notes.
Profit or loss for the period
88 An entity shall recognise all items of income and expense in a period in profit or loss unless an
MFRS requires or permits otherwise.
"$ Some MFRSs speci# circumstances when an entit# recognises particular items outside proit or loss in the
current period2 MAS " speciies two such circumstances: the correction o errors and the eect o changes
in accounting policies2 &ther MFRSs re'uire or permit components o other comprehensi)e income that
meet the Framework1s deinition o income or e9pense to be e9cluded rom proit or loss 5see paragraph
!62
Other comprehensive income for the period
90 An entity shall disclose the amount of income tax relating to each component of other
comprehensive income, including reclassification adjustments, either in the statement of
comprehensive income or in the notes.
$1 An entit# ma# present components o other comprehensi)e income either:
5a6 net o related ta9 eects3 or
5b6 beore related ta9 eects with one amount shown or the aggregate amount o income ta9 relating to
those components2
92 An entity shall disclose reclassification adjustments relating to components of other comprehensive
income.
$% &ther MFRSs speci# whether and when amounts pre)iousl# recognised in other comprehensi)e income
are reclassiied to proit or loss2 Such reclassiications are reerred to in this Standard as reclassiication
ad=ustments2 A reclassiication ad=ustment is included with the related component o other comprehensi)e
income in the period that the ad=ustment is reclassiied to proit or loss2 For e9ample3 gains realised on the
Myanmar Financial Reporting Standards/MAS1
16
disposal o a)ailable,or,sale inancial assets are included in proit or loss o the current period2 0hese
amounts ma# ha)e been recognised in other comprehensi)e income as unrealised gains in the current or
pre)ious periods2 0hose unrealised gains must be deducted rom other comprehensi)e income in the period
in which the realised gains are reclassiied to proit or loss to a)oid including them in total comprehensi)e
income twice2
$4 An entit# ma# present reclassiication ad=ustments in the statement o comprehensi)e income or in the
notes2 An entit# presenting reclassiication ad=ustments in the notes presents the components o other
comprehensi)e income ater an# related reclassiication ad=ustments2
$5 Reclassiication ad=ustments arise3 or e9ample3 on disposal o a oreign operation 5see MAS 2163 on
derecognition o a)ailable,or,sale inancial assets 5see MAS %$6 and when a hedged orecast transaction
aects proit or loss 5see paragraph 1-- o MAS %$ in relation to cash low hedges62
$6 Reclassiication ad=ustments do not arise on changes in re)aluation surplus recognised in accordance with
MAS 16 or MAS %" or on actuarial gains and losses on deined beneit plans recognised in accordance
with paragraph $%A o MAS 1$2 0hese components are recognised in other comprehensi)e income and are
not reclassiied to proit or loss in subse'uent periods2 (hanges in re)aluation surplus ma# be transerred
to retained earnings in subse'uent periods as the asset is used or when it is derecognised 5see MAS 16 and
MAS %"62 Actuarial gains and losses are reported in retained earnings in the period that the# are
recognised as other comprehensi)e income 5see MAS 1$62
Information to be presented in the statement of comprehensive income or in the notes
97 When items of income or expense are material, an entity shall disclose their nature and amount
separately.
$" (ircumstances that would gi)e rise to the separate disclosure o items o income and e9pense include:
5a6 write,downs o in)entories to net realisable )alue or o propert#3 plant and e'uipment to
reco)erable amount3 as well as re)ersals o such write,downs;
5b6 restructurings o the acti)ities o an entit# and re)ersals o an# pro)isions or the costs o
restructuring;
5c6 disposals o items o propert#3 plant and e'uipment;
5d6 disposals o in)estments;
5e6 discontinued operations;
56 litigation settlements; and
5g6 other re)ersals o pro)isions2
99 An entity shall present an analysis of expenses recognised in profit or loss using a classification
based on either their nature or their function within the entity, whichever provides information that
is reliable and more relevant.
1-- Bntities are encouraged to present the anal#sis in paragraph $$ in the statement o comprehensi)e income
or in the separate income statement 5i presented62
1-1 B9penses are subclassiied to highlight components o inancial perormance that ma# dier in terms o
re'uenc#3 potential or gain or loss and predictabilit#2 0his anal#sis is pro)ided in one o two orms2
1-2 0he irst orm o anal#sis is the 7nature o e9pense1 method2 An entit# aggregates e9penses within proit or
loss according to their nature 5or e9ample3 depreciation3 purchases o materials3 transport costs3 emplo#ee
beneits and ad)ertising costs63 and does not reallocate them among unctions within the entit#2 0his
method ma# be simple to appl# because no allocations o e9penses to unctional classiications are
necessar#2 An e9ample o a classiication using the nature o e9pense method is as ollows:
Myanmar Financial Reporting Standards/MAS1
17
Re)enue E
&ther income E
(hanges in in)entories o inished goods and wor8 in progress E
Raw materials and consumables used E
Bmplo#ee beneits e9pense E
/epreciation and amortisation e9pense E
&ther e9penses E
0otal e9penses 5E6
.roit beore ta9 E
1-% 0he second orm o anal#sis is the 7unction o e9pense1 or 7cost o sales1 method and classiies e9penses
according to their unction as part o cost o sales or3 or e9ample3 the costs o distribution or
administrati)e acti)ities2 At a minimum3 an entit# discloses its cost o sales under this method separatel#
rom other e9penses2 0his method can pro)ide more rele)ant inormation to users than the classiication o
e9penses b# nature3 but allocating costs to unctions ma# re'uire arbitrar# allocations and in)ol)e
considerable =udgement2 An e9ample o a classiication using the unction o e9pense method is as
ollows:
Re)enue E
(ost o sales 5E6
Gross proit E
&ther income E
/istribution costs 5E6
Administrati)e e9penses 5E6
&ther e9penses 5E6
.roit beore ta9 E
104 An entity classifying expenses by function shall disclose additional information on the nature of
expenses, including depreciation and amortisation expense and employee benefits expense.
1-5 0he choice between the unction o e9pense method and the nature o e9pense method depends on
historical and industr# actors and the nature o the entit#2 <oth methods pro)ide an indication o those
costs that might )ar#3 directl# or indirectl#3 with the le)el o sales or production o the entit#2 <ecause
each method o presentation has merit or dierent t#pes o entities3 this Standard re'uires management to
Myanmar Financial Reporting Standards/MAS1
18
select the presentation that is reliable and more rele)ant2 4owe)er3 because inormation on the nature o
e9penses is useul in predicting uture cash lows3 additional disclosure is re'uired when the unction o
e9pense classiication is used2 *n paragraph 1-43 7emplo#ee beneits1 has the same meaning as in MAS 1$2
Statement of changes in equity
106 An entity shall present a statement of changes in equity showing in the statement:
(a) total comprehensive income for the period, showing separately the total amounts
attributable to owners of the parent and to non-controlling interests;
(b) for each component of equity, the effects of retrospective application or retrospective
restatement recognised in accordance with MAS 8; and
(c) FdeletedG
(d) for each component of equity, a reconciliation between the carrying amount at the
beginning and the end of the period, separately disclosing changes resulting from:
(i) profit or loss;
(ii) each item of other comprehensive income; and
(iii) transactions with owners in their capacity as owners, showing separately
contributions by and distributions to owners and changes in ownership interests
in subsidiaries that do not result in a loss of control.
107 An entity shall present, either in the statement of changes in equity or in the notes, the amount of
dividends recognised as distributions to owners during the period, and the related amount per share.
1-" *n paragraph 1-63 the components o e'uit# include3 or e9ample3 each class o contributed e'uit#3 the
accumulated balance o each class o other comprehensi)e income and retained earnings2
1-$ (hanges in an entit#1s e'uit# between the beginning and the end o the reporting period relect the
increase or decrease in its net assets during the period2 B9cept or changes resulting rom transactions with
owners in their capacit# as owners 5such as e'uit# contributions3 reac'uisitions o the entit#1s own e'uit#
instruments and di)idends6 and transaction costs directl# related to such transactions3 the o)erall change in
e'uit# during a period represents the total amount o income and e9pense3 including gains and losses3
generated b# the entit#1s acti)ities during that period2
11- MAS " re'uires retrospecti)e ad=ustments to eect changes in accounting policies3 to the e9tent
practicable3 e9cept when the transition pro)isions in another MFRS re'uire otherwise2 MAS " also
re'uires restatements to correct errors to be made retrospecti)el#3 to the e9tent practicable2 Retrospecti)e
ad=ustments and retrospecti)e restatements are not changes in e'uit# but the# are ad=ustments to the
opening balance o retained earnings3 e9cept when an MFRS re'uires retrospecti)e ad=ustment o another
component o e'uit#2 .aragraph 1-65b6 re'uires disclosure in the statement o changes in e'uit# o the
total ad=ustment to each component o e'uit# resulting rom changes in accounting policies and3
separatel#3 rom corrections o errors2 0hese ad=ustments are disclosed or each prior period and the
beginning o the period2
Statement of cash flows
111 (ash low inormation pro)ides users o inancial statements with a basis to assess the abilit# o the entit#
to generate cash and cash e'ui)alents and the needs o the entit# to utilise those cash lows2 MAS ! sets
out re'uirements or the presentation and disclosure o cash low inormation2
Notes
Structure
112 The notes shall:
Myanmar Financial Reporting Standards/MAS1
19
(a) present information about the basis of preparation of the financial statements and the
specific accounting policies used in accordance with paragraphs 117124;
(b) disclose the information required by MFRSs that is not presented elsewhere in the financial
statements; and
(c) provide information that is not presented elsewhere in the financial statements, but is
relevant to an understanding of any of them.
113 An entity shall, as far as practicable, present notes in a systematic manner. An entity shall cross-
reference each item in the statements of financial position and of comprehensive income, in the
separate income statement (if presented), and in the statements of changes in equity and of cash
flows to any related information in the notes.
114 An entit# normall# presents notes in the ollowing order3 to assist users to understand the inancial
statements and to compare them with inancial statements o other entities:
5a6 statement o compliance with MFRSs 5see paragraph 166;
5b6 summar# o signiicant accounting policies applied 5see paragraph 11!6;
5c6 supporting inormation or items presented in the statements o inancial position and o
comprehensi)e income3 in the separate income statement 5i presented63 and in the statements o
changes in e'uit# and o cash lows3 in the order in which each statement and each line item is
presented; and
5d6 other disclosures3 including:
5i6 contingent liabilities 5see MAS %!6 and unrecognised contractual commitments3 and
5ii6 non,inancial disclosures3 eg the entit#1s inancial ris8 management ob=ecti)es and
policies 5see MFRS !62
115 *n some circumstances3 it ma# be necessar# or desirable to )ar# the order o speciic items within the
notes2 For e9ample3 an entit# ma# combine inormation on changes in air )alue recognised in proit or
loss with inormation on maturities o inancial instruments3 although the ormer disclosures relate to the
statement o comprehensi)e income or separate income statement 5i presented6 and the latter relate to the
statement o inancial position2 @e)ertheless3 an entit# retains a s#stematic structure or the notes as ar as
practicable2
116 An entit# ma# present notes pro)iding inormation about the basis o preparation o the inancial
statements and speciic accounting policies as a separate section o the inancial statements2
Disclosure of accounting policies
117 An entity shall disclose in the summary of significant accounting policies:
(a) the measurement basis (or bases) used in preparing the financial statements, and
(b) the other accounting policies used that are relevant to an understanding of the financial
statements.
11" *t is important or an entit# to inorm users o the measurement basis or bases used in the inancial
statements 5or e9ample3 historical cost3 current cost3 net realisable )alue3 air )alue or reco)erable
amount6 because the basis on which an entit# prepares the inancial statements signiicantl# aects users1
anal#sis2 >hen an entit# uses more than one measurement basis in the inancial statements3 or e9ample
when particular classes o assets are re)alued3 it is suicient to pro)ide an indication o the categories o
assets and liabilities to which each measurement basis is applied2
11$ *n deciding whether a particular accounting polic# should be disclosed3 management considers whether
disclosure would assist users in understanding how transactions3 other e)ents and conditions are relected
in reported inancial perormance and inancial position2 /isclosure o particular accounting policies is
especiall# useul to users when those policies are selected rom alternati)es allowed in MFRSs2 An
e9ample is disclosure o whether a )enturer recognises its interest in a =ointl# controlled entit# using
Myanmar Financial Reporting Standards/MAS1
2
proportionate consolidation or the e'uit# method 5see MAS %1 Interests in )oint *entures62 Some MFRSs
speciicall# re'uire disclosure o particular accounting policies3 including choices made b# management
between dierent policies the# allow2 For e9ample3 MAS 16 re'uires disclosure o the measurement bases
used or classes o propert#3 plant and e'uipment2
12- Bach entit# considers the nature o its operations and the policies that the users o its inancial statements
would e9pect to be disclosed or that t#pe o entit#2 For e9ample3 users would e9pect an entit# sub=ect to
income ta9es to disclose its accounting policies or income ta9es3 including those applicable to deerred
ta9 liabilities and assets2 >hen an entit# has signiicant oreign operations or transactions in oreign
currencies3 users would e9pect disclosure o accounting policies or the recognition o oreign e9change
gains and losses2
121 An accounting polic# ma# be signiicant because o the nature o the entit#1s operations e)en i amounts
or current and prior periods are not material2 *t is also appropriate to disclose each signiicant accounting
polic# that is not speciicall# re'uired b# MFRSs but the entit# selects and applies in accordance with
MAS "2
122 An entity shall disclose, in the summary of significant accounting policies or other notes, the
judgements, apart from those involving estimations (see paragraph 125), that management has made
in the process of applying the entity`s accounting policies and that have the most significant effect on
the amounts recognised in the financial statements.
12% *n the process o appl#ing the entit#1s accounting policies3 management ma8es )arious =udgements3 apart
rom those in)ol)ing estimations3 that can signiicantl# aect the amounts it recognises in the inancial
statements2 For e9ample3 management ma8es =udgements in determining:
5a6 whether inancial assets are held,to,maturit# in)estments;
5b6 when substantiall# all the signiicant ris8s and rewards o ownership o inancial assets and lease
assets are transerred to other entities;
5c6 whether3 in substance3 particular sales o goods are inancing arrangements and thereore do not
gi)e rise to re)enue; and
5d6 whether the substance o the relationship between the entit# and a special purpose entit#
indicates that the entit# controls the special purpose entit#2
124 Some o the disclosures made in accordance with paragraph 122 are re'uired b# other MFRSs2 For
e9ample3 MAS 2! re'uires an entit# to disclose the reasons wh# the entit#1s ownership interest does not
constitute control3 in respect o an in)estee that is not a subsidiar# e)en though more than hal o its )oting
or potential )oting power is owned directl# or indirectl# through subsidiaries2MAS 4- In&estment
Property re'uires disclosure o the criteria de)eloped b# the entit# to distinguish in)estment propert# rom
owner,occupied propert# and rom propert# held or sale in the ordinar# course o business3 when
classiication o the propert# is diicult2
Sources of estimation uncertainty
125 An entity shall disclose information about the assumptions it makes about the future, and other
major sources of estimation uncertainty at the end of the reporting period, that have a significant
risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the
next financial year. In respect of those assets and liabilities, the notes shall include details of:
(a) their nature, and
(b) their carrying amount as at the end of the reporting period.
126 /etermining the carr#ing amounts o some assets and liabilities re'uires estimation o the eects o
uncertain uture e)ents on those assets and liabilities at the end o the reporting period2 For e9ample3 in the
absence o recentl# obser)ed mar8et prices3 uture,oriented estimates are necessar# to measure the
reco)erable amount o classes o propert#3 plant and e'uipment3 the eect o technological obsolescence
on in)entories3 pro)isions sub=ect to the uture outcome o litigation in progress3 and long,term emplo#ee
beneit liabilities such as pension obligations2 0hese estimates in)ol)e assumptions about such items as the
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ris8 ad=ustment to cash lows or discount rates3 uture changes in salaries and uture changes in prices
aecting other costs2
12! 0he assumptions and other sources o estimation uncertaint# disclosed in accordance with paragraph 125
relate to the estimates that re'uire management1s most diicult3 sub=ecti)e or comple9 =udgements2 As the
number o )ariables and assumptions aecting the possible uture resolution o the uncertainties increases3
those =udgements become more sub=ecti)e and comple93 and the potential or a conse'uential material
ad=ustment to the carr#ing amounts o assets and liabilities normall# increases accordingl#2
12" 0he disclosures in paragraph 125 are not re'uired or assets and liabilities with a signiicant ris8 that their
carr#ing amounts might change materiall# within the ne9t inancial #ear i3 at the end o the reporting
period3 the# are measured at air )alue based on recentl# obser)ed mar8et prices2 Such air )alues might
change materiall# within the ne9t inancial #ear but these changes would not arise rom assumptions or
other sources o estimation uncertaint# at the end o the reporting period2
12$ An entit# presents the disclosures in paragraph 125 in a manner that helps users o inancial statements to
understand the =udgements that management ma8es about the uture and about other sources o estimation
uncertaint#2 0he nature and e9tent o the inormation pro)ided )ar# according to the nature o the
assumption and other circumstances2 B9amples o the t#pes o disclosures an entit# ma8es are:
5a6 the nature o the assumption or other estimation uncertaint#;
5b6 the sensiti)it# o carr#ing amounts to the methods3 assumptions and estimates underl#ing their
calculation3 including the reasons or the sensiti)it#;
5c6 the e9pected resolution o an uncertaint# and the range o reasonabl# possible outcomes within
the ne9t inancial #ear in respect o the carr#ing amounts o the assets and liabilities aected;
and
5d6 an e9planation o changes made to past assumptions concerning those assets and liabilities3 i the
uncertaint# remains unresol)ed2
1%- 0his Standard does not re'uire an entit# to disclose budget inormation or orecasts in ma8ing the
disclosures in paragraph 1252
1%1 Sometimes it is impracticable to disclose the e9tent o the possible eects o an assumption or another
source o estimation uncertaint# at the end o the reporting period2 *n such cases3 the entit# discloses that it
is reasonabl# possible3 on the basis o e9isting 8nowledge3 that outcomes within the ne9t inancial #ear
that are dierent rom the assumption could re'uire a material ad=ustment to the carr#ing amount o the
asset or liabilit# aected2 *n all cases3 the entit# discloses the nature and carr#ing amount o the speciic
asset or liabilit# 5or class o assets or liabilities6 aected b# the assumption2
1%2 0he disclosures in paragraph 122 o particular =udgements that management made in the process o
appl#ing the entit#1s accounting policies do not relate to the disclosures o sources o estimation
uncertaint# in paragraph 1252
1%% &ther MFRSs re'uire the disclosure o some o the assumptions that would otherwise be re'uired in
accordance with paragraph 1252 For e9ample3 MAS %! re'uires disclosure3 in speciied circumstances3 o
ma=or assumptions concerning uture e)ents aecting classes o pro)isions2 MFRS ! re'uires disclosure o
signiicant assumptions the entit# uses in estimating the air )alues o inancial assets and inancial
liabilities that are carried at air )alue2 MAS 16 re'uires disclosure o signiicant assumptions that the
entit# uses in estimating the air )alues o re)alued items o propert#3 plant and e'uipment2
Capital
134 An entity shall disclose information that enables users of its financial statements to evaluate the
entity`s objectives, policies and processes for managing capital.
1%5 0o compl# with paragraph 1%43 the entit# discloses the ollowing:
5a6 'ualitati)e inormation about its ob=ecti)es3 policies and processes or managing capital3
including:
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5i6 a description o what it manages as capital;
5ii6 when an entit# is sub=ect to e9ternall# imposed capital re'uirements3 the nature o
those re'uirements and how those re'uirements are incorporated into the management
o capital; and
5iii6 how it is meeting its ob=ecti)es or managing capital2
5b6 summar# 'uantitati)e data about what it manages as capital2 Some entities regard some inancial
liabilities 5eg some orms o subordinated debt6 as part o capital2 &ther entities regard capital as
e9cluding some components o e'uit# 5eg components arising rom cash low hedges62
5c6 an# changes in 5a6 and 5b6 rom the pre)ious period2
5d6 whether during the period it complied with an# e9ternall# imposed capital re'uirements to which
it is sub=ect2
5e6 when the entit# has not complied with such e9ternall# imposed capital re'uirements3 the
conse'uences o such non,compliance2
0he entit# bases these disclosures on the inormation pro)ided internall# to 8e# management personnel2
1%6 An entit# ma# manage capital in a number o wa#s and be sub=ect to a number o dierent capital
re'uirements2 For e9ample3 a conglomerate ma# include entities that underta8e insurance acti)ities and
ban8ing acti)ities and those entities ma# operate in se)eral =urisdictions2 >hen an aggregate disclosure o
capital re'uirements and how capital is managed would not pro)ide useul inormation or distorts a
inancial statement user1s understanding o an entit#1s capital resources3 the entit# shall disclose separate
inormation or each capital re'uirement to which the entit# is sub=ect2
Puttable financial instruments classified as equity
136A For puttable financial instruments classified as equity instruments, an entity shall disclose (to the
extent not disclosed elsewhere):
(a) summary quantitative data about the amount classified as equity;
(b) its objectives, policies and processes for managing its obligation to repurchase or redeem
the instruments when required to do so by the instrument holders, including any changes
from the previous period;
(c) the expected cash outflow on redemption or repurchase of that class of financial
instruments; and
(d) information about how the expected cash outflow on redemption or repurchase was
determined.
Other disclosures
137 An entity shall disclose in the notes:
(a) the amount of dividends proposed or declared before the financial statements were
authorised for issue but not recognised as a distribution to owners during the period, and
the related amount per share; and
(b) the amount of any cumulative preference dividends not recognised.
138 An entity shall disclose the following, if not disclosed elsewhere in information published with the
financial statements:
(a) the domicile and legal form of the entity, its country of incorporation and the address of its
registered office (or principal place of business, if different from the registered office);
(b) a description of the nature of the entity`s operations and its principal activities;
(c) the name of the parent and the ultimate parent of the group; and
(d) if it is a limited life entity, information regarding the length of its life.
Myanmar Financial Reporting Standards/MAS1