Practice of Defined Benefit and Defined Contribution Plans: Evidence from Malaysian Companies

The research aims to investigate the practice of accounting and reporting by retirement benefits plan disclosure which is the Defined Benefit (DB) plan and Defined Contribution (DC) plan across Malaysian public companies following the adoption of MFRS 119. Based on the annual reports for the year 2020, the sample consists of 40 public listed businesses from Bursa Malaysia that have implemented DB and DC plans. The pension is favorably significant to Malaysian public listed firms among the disclosures in MFRS 119 of Employee Benefits. According to the annual report for 2020, 95% of companies have selected DC schemes. Both pension plans could help the aging population plan retirement needs in the future. The highest level of items disclosed is assets at the end of the period, and other income at 100%. The second highest of the category were other expenses, income taxes, and a summary of significant accounting policies at 95%. Conversely, the lower disclosure were the details of investment in the employer and description of the plan and the effect of any changes in the plan during the period at 17.5% and 2.5%, respectively. The findings are very helpful for understanding the latest post-employment benefits coverage trends and useful for upgrading future benefits plans.