Financial Reporting

Professional Accounting and Business Support Services

In a rapidly changing business environment, accurate, transparent, and compliant financial management is central to a company’s healthy development.

Morningstar Asia (MSMC ASIA) is committed to providing businesses with a one-stop professional service from accounting and tax to human resources and visa management, helping you operate efficiently and compliantly. Malaysian corporate financial reporting requirements include:

Applicable accounting standards

The Accounting Standards Board of Malaysia (MASB) has established an accounting standards framework applicable to different types of businesses:

Malaysian Financial Reporting Standards (MFRS): Fully convergent with International Financial Reporting Standards (IFRS). Mandatory for “public interest entities” (such as listed companies and financial institutions), with non-public interest entities having the option to adopt it voluntarily.
Malaysian Private Entity Reporting Standards (MPERS): Specifically tailored for private companies (i.e., most small and medium-sized enterprises that are not listed or financial institutions), based on IFRS for SMEs.
Micro Entities: Businesses meeting specific smaller size thresholds can choose to apply a simplified reporting standard or continue to apply MPERS.

Bookkeeping and the functional currency

Bookkeeping: Businesses must properly maintain their accounting books and related vouchers to fully explain their transactions and reflect their accurate financial position. According to the Companies Act 2016, these financial records must be retained for seven years after the completion of a transaction.
Functional Currency: Financial statements are typically prepared in the Malaysian Ringgit (MYR). However, if a business’s main economic environment and transactions are conducted in other currencies, it can apply to the relevant authorities to use a functional currency (such as the US dollar) for bookkeeping and reporting.

Statutory submission deadline

Financial Statement Distribution: For private companies (Sdn. Bhd.), directors must prepare and distribute financial statements to all shareholders within six months of the end of the financial year.
Filing of Financial Statements (Lodgement): Within 30 days of distributing the audited or unaudited financial statements to shareholders, the company must submit the financial statements, along with the annual return, to the Companies Commission of Malaysia (SSM).

Financial Audit and Exemption Standards

Generally, Malaysian companies are required to have their financial statements audited annually by a licensed independent auditor. However, to alleviate compliance costs for SMEs, the SSM (Small and Medium Enterprises Board) has implemented an audit exemption policy. Private companies meeting any of the following conditions may apply for an exemption from the annual audit (but must still submit unaudited financial statements):

Dormant Companies: Companies that have had no actual business operations since incorporation, or no accounting transactions in the current and previous financial years.
Zero-Revenue Companies: Companies that have had no operating revenue in the current financial year and the past two consecutive financial years, and whose total assets in the current and previous financial years do not exceed RM300,000.
Threshold-Qualified SMEs: Companies must simultaneously meet the following criteria: annual revenue not exceeding RM100,000 in the current and past two financial years; total assets at the end of the period not exceeding RM300,000; and the number of employees at the end of each financial year not exceeding 5.

Our Advantages

Strict adherence to Singapore Financial Reporting Standards (Singapore FRS) and International Financial Reporting Standards (IFRS)
Accurate, transparent, and auditable reporting processes
Customized solutions for different industries and company sizes
Audit support and financial analysis to help clients optimize decision-making.

Kindly contact us for expert assistance with preparing financial statements in accordance with applicable accounting standards.

Accounting and Financial Reporting Services

We provide comprehensive accounting and financial reporting support to ensure accurate and compliant accounting and help companies improve operational efficiency. Our services include:

Monthly, quarterly, and annual accounting
Bank reconciliation and general ledger management
Financial statement preparation (Singapore FRS / IFRS)
Consolidated financial statements and management reporting
Fixed asset and depreciation ledger management
Expense control and cash flow analysis
Accounting system setup and optimization (Xero, QuickBooks, MYOB, etc.)
Financial process and internal control design

Kindly contact us for professional assistance in preparing financial statements according to applicable accounting standards.

Why Us?

We uphold the highest standards of accuracy, transparency, and compliance, ensuring every report is auditable. Leveraging our deep understanding of major accounting standards, our team employs tailored and rigorous methodologies to meet your business needs. Through precise reporting and expert insights, we help you identify potential risks, make informed decisions, and earn the trust of stakeholders.

MSMC ASIA

#19-06 160 Robinson Rd, SBF Center, Singapore 068914