MFRS 9 more likely to affect balance sheet

Among the Malaysian companies, according to the list, were Malayan Banking Bhd (ranked 390th), Tenaga Nasional Bhd (490), Public Bank Bhd (632), CIMB Group Holdings Bhd (671)

PETALING JAYA: The new accounting standard that will come into effect next year will have less impact on banks’ earnings compared with their balance sheet.

According to AmBank Research, the impact of MFRS 9 will be greater on banks’ balance sheet because any increase in impairment losses provision will be charged to retained earnings.