Malaysian private entity reporting standard (MPERS) implementation for small and medium enterprises (SMEs)

Abstract: Malaysian Private Entity Reporting Standard (MPERS) serves as new reporting framework to private entities and significant milestone to the capital market. The qualification for first-time MPERS adoption is incremental and it is important to prepare in advance for private entities if they intend to move to the MPERS or MFRS framework in the near future. A common question that private entities may ask is how far-reaching or how reliable the current Private Entity Reporting Standards (PERS) Framework is comparable to the new MPERS or MFRS framework. The adoption of MPERS is retrospective. The purpose of the analysis is to analyze the implementation of MPERS on small medium enterprises (SMEs) and how they perceive the implementation. The study covers all sectors of the SME sector, namely services, manufacturing, agriculture, construction, mining and quarrying, and is subdivided into Micro, small and medium and in three categories. These sectors were selected based on the SMEs landscape of Malaysia following the issuance of MPERS on February 14, 2014. There were 55 of SMEs participated in this research by answering the questionnaire. The study evaluated using linear regression and the measures of research are based on the factors described in the literature review, influence the variables. Hence, the SMEs experiences have the potential to make respondent’s perception of MPERS also agreeable. The implications of the research highlighted that the implementation of the MPERS still at the infancy level as there are few challenges faced by the SMEs regards to the implementation. Therefore, the regulators and standard setter can identify the challenges and provide appropriate assistance to ensure the financial reports are fairly presented.

How to cite this paper

 Jamil, N & Rusli, S. (2021). Malaysian private entity reporting standard (MPERS) implementation for small and medium enterprises (SMEs).Accounting, 7(3), 615-620.

Refrences

Accountants, I. F. O. (2017). Small and Medium Practices. Retrieved 28 May 2017 from https://www.ifac.org/about-ifac/small-and-medium-practices.
Ametorwo, A. M. (2016). Managing work family conflict among female entrepreneurs in Ghana for development. International Journal of Economics, Business and Management Studies, 3(1), 21-35.
Aziz, S. A., Bakar, F. A., & Latif, R. A. (2019). The readiness and challenges of the Malaysian private entities reporting standard (MPERS). International Journal of Innovation, Creativity and Change, 5(2), 1621-1634.
Buchanan, F. R. (2003). International accounting harmonization: Developing a single world standard. Business Horizons, 46(3), 61-70.
Chiao, Y. C., Yang, K. P., & Yu, C. M. J. (2006). Performance, internationalization, and firm-specific advantages of SMEs in a newly-industrialized economy. Small Business Economics, 26(5), 475-492.
Coppens, C., Van Wymeersch, K., Van Hecke, A., Engels, L., De Beelde, I., De Lembre, E., ... & Van De Velde, G. (2007). An investigation into the attitude of Belgian SMEs towards the implementation of IAS/IFRS. In Annual Conference of the European Accounting Association.
Gajevszky, A. (2015). Assessing Financial Reporting Quality: Evidence from Romania. Audit Financiar, 13(121).
Jamil, N. N., Ramli, N. M., Marzuki, A., & Ahmad, N. N. (2020). Malaysia private entity reporting standard (MPERS) adoption for SMEs: Insights from accounting practitioners in Malaysia. Business and Economic Research, 10(2),104-122.
Janie, D. N. A., Yulianti, Y., Rosyati, R., & Saifudin, S. (2020). The implementation of Indonesian Accounting Standards for Micro, Small and Medium Entities. Humanities & Social Sciences Reviews, 8(1), 383-388.
Malaysia, B. N. (2005). SME annual report 2005. Kuala Lumpur.
Malaysian Accounting Standard Board (2015). Malaysian Private Entities Reporting Standards (MPERS).
Procházka, D. (2017). The unintended consequences of accounting harmonization in a transition country: A case study of management accounting of private Czech companies. Contemporary Economics, 11(4), 443-458.
Salin, A. S. A. P. (2017). Malaysian Private Entities Reporting Standards-Benefits and Challenges to SMEs. International Journal of Academic Research in Business and Social Sciences, 7(11), 1302-1320.
Storey, D. J. (2016). Understanding the small business sector. Routledge.
Taylor, M., & Murphy, A. (2004). SMEs and the take-up of e-business. Urban Geography, 25(4), 315-331.
Team, T. A. T. E. (2016). MPERS – Transforming Small Business Finance. Accountants Today, 29, pp. 16-27.
Yasser, Q. R., Al Mamun, A., & Rodrigs, M. (2017). Director training and financial disclosure: Asian insights. Contemporary Economics, 11(2), 145-160.
Young, J. J. (2003). Constructing, Persuading and Silencing: The Rhetoric of Accounting Standards. Accounting, and Society, 28(6), 621-38.

Journals

AC Volumes

Keywords

Authors

Countries

Accounting

Malaysian private entity reporting standard (MPERS) implementation for small and medium enterprises (SMEs) Pages 615-620 Download PDF

Add Reviews