The Impact of Malaysian Private Entity Reporting Standard (MPERS) Adoption on the Value Relevance and Timeliness of Financial Reporting by Small and Medium Enterprises (Smes): A Conceptual Framework

Malaysia has introduced the latest framework of financial report for private entities, which is the Malaysian Private Entity Reporting Standard (MPERS), and for the capital market, it is a very important pillar. This enables the entity to verify its financial statements adhere to all International Financial Reporting Standards (IFRS). MPERS can enable the concentration and comparison of local and foreign enterprises with some adaption to the Malaysian business climate. As a result, the purpose of this study is to analyze the conceptual framework for the impact of the MPERS on the financial reporting quality, relevance, and timeliness of Malaysian Small and Medium Enterprises (SMEs). Furthermore, it will identify the MPERS relationship and the financial reporting quality regarding relevance and value of timeliness. As a result, it will help relevant parties to understand the importance of relevance and timeliness in financial reporting and identify appropriate strategies to educate and add knowledge to accounting practitioners. The findings of this study can attract the interest of relevant parties to set standards and SMEs in Malaysia and other countries.