Early Adoption of Masb 22 (Segment Reporting) By Malaysian Listed Companies

Malaysian Accounting Review, Vol. 2, No. 1, pp. 139-152, October 2003

24 Pages Posted: 5 Feb 2003 Last revised: 13 Nov 2007

Wan Nordin Wan-Hussin

Universiti Utara Malaysia - College of Business

Noriah Che-Adam

Universiti Utara Malaysia - School of Accountancy

Nor Asma Lode

Universiti Utara Malaysia - School of Accountancy

Hasnah Kamardin

Universiti Utara Malaysia - School of Accountancy

Abstract

Listed companies in Malaysia have to adhere to a new standard of segment reporting (MASB 22) for their financial statements beginning on or after 1 January 2002. The reporting and disclosure requirements under MASB 22 are similar, in all material respects, to the requirements under the revised International Accounting Standard (IAS) 14. Anticipating that some Malaysian companies might adopt MASB 22 earlier, this study seeks to find out how pervasive is early adoption in Malaysia and the disclosure practices among the early adopters. Based on a sample of 32 early adopters, the findings show that less than half of the companies comply fully with the MASB 22 requirements. The most glaring disclosure deficiency is the failure to disaggregate non-cash expenses other than depreciation and amortisation by reportable segments. Other deficiencies include non-disclosure of capital expenditure and investment in equity method associates by reportable segments, and basis for inter-segment pricing.

Keywords: MASB 22, Segment, Early Adopt, Malaysia

JEL Classification: M41, M44, M45

Suggested Citation

Wan-Hussin, Wan Nordin and Che-Adam, Noriah and Lode, Nor Asma and Kamardin, Hasnah, Early Adoption of Masb 22 (Segment Reporting) By Malaysian Listed Companies. Malaysian Accounting Review, Vol. 2, No. 1, pp. 139-152, October 2003. Available at SSRN: https://ssrn.com/abstract=356600 or http://dx.doi.org/10.2139/ssrn.356600

Wan Nordin Wan-Hussin (Contact Author)

Universiti Utara Malaysia - College of Business ( email )

Sintok, Kedah Darul Aman 06010
Malaysia
+604-7003939 (Phone)
+604-7005762 (Fax)

Noriah Che-Adam

Universiti Utara Malaysia - School of Accountancy ( email )

Sintok, Kedah Darul Aman 06010
Malaysia

Nor Asma Lode

Universiti Utara Malaysia - School of Accountancy ( email )

Sintok, Kedah Darul Aman 06010
Malaysia

Hasnah Kamardin

Universiti Utara Malaysia - School of Accountancy ( email )

Sintok, Kedah Darul Aman 06010
Malaysia

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