MFRS118 - Revenue

In November 2011 the Malaysian Accounting Standards Board (MASB) issued MFRS 118
Revenue. The Standard is applicable for annual periods beginning on or after 1 January 2012.
MFRS 118 is equivalent to IAS 18 Revenue as adopted and amended by the International
Accounting Standards Board.

Definition

The following term are used in this standard with the meanings specified:

Revenue is the gross inflow of economic benefit during the period arising in the course of the
ordinary activities of an entity when those inflows result in increases in equity, other than
increases relating to contributions from equity participants.

Measurement of revenue

Revenue shall be measures at the fair value of the consideration received or receivable.
The amount of revenue arising on transaction is usually determined by agreement between the
entity and the buyer or user of the asset. It is measured at the fair value of the consideration
received or receivable taking into account the amount of any trade discount and volume rebates
allowed by the entity.

Disclosure

An entity shall disclose:

(a) The accounting policies adopted for the recognition of revenue, including the methods
adopted to determine the stage of completion of transaction involving the rendering of
services;
(b) The amount of each significant category of revenue recognized during the period,
including revenue arising from:
(i) The sale of good;
(ii) The rendering of services;
(iii) Interest
(iv) Royalties
(v) Dividends; and
(c) The amount of revenue arising from exchanges of goods or services included in each
significant category of revenue.