The effects of FRS139 adoption on the performance and value relevance of non-financial public listed companies in Malaysia
Malaysia began to converge its local standards to IFRS since 2004 but had deferred the adoption of FRS139 to the year 2010 due to its complexity and rulebased requirement. FRS139 requires all public listed companies to recognize and measure financial instruments at fair value. Since financial instr...
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| Format: | Thesis |
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2013
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| Summary: | Malaysia began to converge its local standards to IFRS since 2004 but had deferred the adoption of FRS139 to the year 2010 due to its complexity and rulebased requirement. FRS139 requires all public listed companies to recognize and measure financial instruments at fair value. Since financial instruments cover a wide scope, FRS139 adoption will have significant impacts on financial statements. With Malaysia having made FRS139 effective since 2010, the effect of FRS139 adoption is unclear, and its relevancy in providing reliable and accurate accounting information for investors to formulate sound investment strategies remains uncertain. Hence, this study focuses on the effects of FRS139 adoption by seeking significant differences between key financial ratios and the value relevance of financial reporting, under the two different reporting regimes (pre- and post—FRS139) at the same fiscal period. The samples used in this study comprise top 100 non-financial public listed companies in Malaysia during FRS139 transition year. |
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