Monday morning. Your salesman runs into your room.
“Boss, closed already! RM200,000 machine. Free 2 years servicing.”

You smile.
“Good. Invoice today. Book the sales.”

Your accountant nods. RM200,000 revenue. This year.
Simple, right?
Not really.

From financial years starting on or after 1 January 2027, Malaysian private companies move to MPERS (2025).

The new revenue rules ask one question.
“What exactly did you promise the customer?”

You promised 2 things.
A machine.
And 2 years of servicing.

So now the scoreboard looks like this.
Machine … Revenue now.
Servicing … Revenue later.
Your profit this year … Lower.
Your bank covenant … Maybe tight.

“Boss, but money already collected leh.”
Yes. Cash is in the bank.
But under the new rules, the servicing part may sit as a contract liability. Not revenue.

You earn it only when you actually service.
This year. Next year. Year after.

Same RM200,000. Same customer. Different year.

Then your banker calls.
“Boss, your interest cover dropped. Can explain?”
“Business same lah! Only accounting change!”

Welcome to MPERS (2025). 😂
And it is not only your machine.

Developer? The old property development guidance is gone. Every contract needs to be looked at again.

Buying over a company? Lawyer fee and due diligence fee now go straight to P&L.

Group got many Sdn Bhd? Control rules also updated.

Renting your factory? This one no change yet. Relax.

Now the part most bosses miss.
The new rules are retrospective.

Your first MPERS (2025) accounts may need your 2026 numbers restated as comparatives.

“Boss, 2026 also kena?”
Possibly. Unless a transition relief applies.
So 2026 is not next time. 2026 is now.

And tax?

Your accounting profit changes. But the tax treatment does not automatically follow. Each adjustment needs to be checked under the Income Tax Act 1967.

Technical reference :
Malaysian Private Entities Reporting Standard, MPERS (2025), Section 23 Revenue from Contracts with Customers, issued by MASB on 10 October 2025, effective for annual periods beginning on or after 1 January 2027.

This article is general educational content and does not constitute tax advice on any specific person’s or company’s facts. Please consult a licensed tax agent before acting.