At Agency level
WAN NADZIR & CO.CHARTERED ACCOUNTANTS · AF1234Financial Reporting & Accounting Standards
Transitioning a Group to MPSAS
A federal government agency was required to prepare its first complete set of MPSAS financial statements while consolidating 44 subsidiaries and associates that continued to report under MFRS.
Assignment snapshot
Included in the group reporting process
For submission to Jabatan Audit Negara
The assignment
A transition involving the whole reporting group.
The Agency previously prepared its accounts under MFRS. Its subsidiaries and associates also used MFRS, while the Agency was now required to report under MPSAS.
This required more than converting the Agency's own accounts. Information from across the group had to be collected, adjusted where relevant and consolidated as though the group entities had reported using a consistent framework.
The challenge
Different frameworks.
One reporting deadline.
- 01
Assess the accounting differences arising from the transition to MPSAS.
- 02
Establish the appropriate opening balances for the Agency.
- 03
Convert relevant information reported by subsidiaries under MFRS.
- 04
Consolidate the Agency, its subsidiaries and associates.
- 05
Prepare a complete set of MPSAS financial statements within the reporting timeline.
Our approach
A structured reporting process, from source data to final statements.
We first assessed the reporting gaps between the existing accounting framework and MPSAS. The identified adjustments were then incorporated into the opening balances and the group reporting process.
To support the consolidation, we developed a linked financial reporting system that brought together information from the Agency and its group entities. Validation checks were built into the process to identify incomplete or inconsistent information before the financial statements were finalised.
Source information
Agency trial balance and reporting information submitted by subsidiaries and associates.
→MPSAS conversion
Gap adjustments, opening balances and validation of information used in the reporting process.
→Group consolidation
Linked statements, consolidation workings, eliminations and consistency checks.
→MPSAS reporting
Complete financial statements, supporting notes and compliance disclosures.
What we delivered
Reporting components designed to work together.
- MPSAS gap assessment
- Opening-balance preparation
- Conversion and consolidation workings
- Reporting instructions for subsidiaries
- Linked financial statements and supporting notes
- Automated cash-flow preparation
- Validation checks
- Training and guidance
The outcome
A more structured path to group reporting.
The reporting system enabled the entities within the Group to submit their financial data and supporting information through a structured and consistent process. Built-in links and validation checks helped maintain data integrity throughout the consolidation.
The automated process reduced repeated manual work and supported the preparation of the Agency's and the Group's financial statements within the required reporting timeline.
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