The different presentation of the internal and external financial statements / Assoc Prof Noryati Md Noor

A business, may it be a sole trader, partnership, or corporation, needs to monitor its financial performance and financial condition. Most commonly, this is achieved through the preparation of the financial statements or referred in the Malaysian Financial Reporting Standards (MFRS) as general-purpose financial statements. The MFRS is a financial reporting framework issued by the MASB for non-private entities in Malaysia. The MASB glossary defines the general-purpose financial statements as “financial statements that are intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs.” According to the Conceptual Framework of Financial reporting (2018), these users may be the internal users such as the owner(s)/existing investors, managers and employees; and the external users such as potential investors, lenders and other creditors, regulators, and members of the public.