New Qualifying Criteria for Audit Exemption (Issue 3 of 4)
Implementation of the New Criteria
To allow businesses time to adapt to these new requirements, the Companies Commission of Malaysia has implemented a phased approach over 3 years. This gradual implementation will give companies the necessary time to adjust to the new thresholds, which will progressively increase in the coming years. By implementing the exemption criteria in phases, Malaysia is ensuring that even smaller businesses, which may have more difficulty meeting the thresholds, are still able to benefit over time.
The transition begins in 2025, with the criteria taking full effect for financial years starting on or after January 1, 2025. Prior to this, companies will continue to operate under the existing criteria outlined in the previous practice directive, which will remain valid until the end of 2024.
This phased approach ensures flexibility for businesses of varying sizes and allows for a smoother transition as they align with the new exemptions.
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