Financial statements are a set of formal reports on a company's financial position and results over a given period. They show shareholders and banks how the company is performing, and every Malaysian company must also lodge them with SSM each year.
What does a set of financial statements include?
- A balance sheet (assets, liabilities and shareholders' equity)
- A profit and loss statement (income, costs and profit or loss)
- A statement of changes in equity and a cash flow statement
- Notes to the accounts
What standards are financial statements prepared under?
Malaysian companies must prepare their statements under the Malaysian Financial Reporting Standards (MFRS), or the Malaysian Private Entities Reporting Standard (MPERS) for eligible private entities. Many SMEs use outsourced accounting for day-to-day bookkeeping and financial statement preparation, helping to keep the figures accurate and the format aligned with the applicable standards.
What happens once the financial statements are ready?
For most private limited companies, the financial statements must first be audited by an approved company auditor, who issues an audit report. The directors' report is not part of the statements, but it must be attached to them, and both are then lodged with SSM, separately from the annual return. Properly prepared statements also underpin tax planning and applications for bank financing. The exact lodgement deadline follows SSM's latest requirements.
This content is for general reference only and does not constitute legal or tax advice. For your own situation, please book a consultation so that GXY's advisory team can advise on your actual circumstances. Last updated: 20 August 2026.
