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Preparation of MBRS Report – Financial Statements

Lesson 1- MBRS Preparation Tool (mTool) and How to Generate MBRS Template

Extensible Business Reporting Language (XBRL) format must be used for filing the information, as defined by Suruhanjaya Syarikat Malaysia (SSM). The primary reason why the business reporting and submission platform has been implemented is bringing about a reduction in use of hard-copy annual return submissions. The filing is done by using the mTool or the MBRS Preparation Tool. This can be downloaded free of charge.To start with your journey to prepare MBRS report, you need to first download MBRS Preparation  Tool (mTool) from SSM website

https://www.ssm.com.my/Pages/Services/Other-Services/MBRS.aspx. Please check to make sure it is the latest version.

From the launch of mTool, you will find 3 filing selection:

  • Exemption Application
  • Annual Return
  • Financial Statements

Please select “Financial Statements” and click “Create Filing” – to generate MBRS template for Financial Statements.

The next step is to fill up relevant filing information for your Company. Here we summarize and explain to you:

  • Company registration number – to fill up your company registration number

Eg: 139559-A

  • Name of company – to fill up name of your company

Eg: Unique Blend Sdn. Bhd.

  • Former name of the Company – to fill up if your company has changed name recently
  • Origin of company – to select whether your company is incorporated in or outside Malaysia

  • Status of company – to select whether your company is a Public Company (Berhad) or a Private Company (Sdn Bhd)

  • Type of company – to select type of your company :
    • Company limited by shares
    • Company limited by guarantee;
    • Unlimited company

  • Disclosure of financial statements preparation for current submission- to select whether it is first financial statements of the company (since the incorporation) or subsequent financial statements being prepared

  • Company ‘s current and previous financial year – start date and end date

Eg:

Current financial year Previous financial year
Start date 1/4/2019 1/4/2018
End date 31/3/2020 31/3/2019

 

  • Status of carrying on business during the financial year – to select whether the company is carrying on business activities or not carrying on business activities

  • Disclosure of financial statements audit status- to select whether the financial statements is audited or unaudited for submission

  • Audit exemption category – to select the type of audit exemption which the company is qualified

Dormant company

    • it has been dormant from the time of its incorporation; or
    • it is dormant throughout the current financial year and in the immediate preceding financial year

Zero-revenue company

    • it does not have any revenue during the current financial year;
    • it does not have any revenue in the immediate past two financial years; and
    • its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 as well as in the FS of the immediate past two financial years.

Threshold qualified company

    • it has revenue not exceeding RM100,000 during the current financial year and in the immediate past two (2) financial years;
    • its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 and in the immediate past two (2) financial years; and
    • it has, at the end of its current financial year and in each of its immediate past two (2) financial years end, not more than five (5) employees

 

  • Basis of accounting standards applied to prepare financial statements – Malaysian Financial Reporting Standards (MFRS), Malaysian Private Entities Reporting Standards (MPERS) or Others

 

  • Type of submission – to select filing in key financial indicators (KFI), financial statements (FS), or financial statements (FS) with Exempt Private Certificate (EPC)

 

  • Nature of financial statements – to select consolidated financial statements (also known as group financial statements, consolidating the parent and subsidiaries) or separate financial statements for company itself only

  • Description of functional currency- to select functional currency of the company – the currency which the company use in the primary economic environment

 

  • Level of rounding used – to select the currency denomination – Actual (MYR), in thousands, in millions, and etc

  • Disclosure whether the company is regulated by Bank Negara – to select if the company is regulated by Bank Negara

Eg: Insurance companies, financial institutions and etc

  • Method for preparing Statement of Financial Position – to select if presented in order of liquidity or current/non current classification
  • Method for preparing Statement of Profit or Loss (Presentation of expenses) – whether by function of expense (Eg selling and distribution expenses, administration expenses and etc) or nature of expenses (Eg Depreciation, Staff payroll cost, Rental and etc)
  • Method for preparing Statement of Comprehensive Income- Before tax, After tax, or not prepared
  • Method for preparing Statement of Cash Flows – Direct or Indirect Method
  • Disclosure on whether comparative period value are restated – to select if the company comparative figures in financial statements for prior year are restated

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MBRS Conversion and Reporting