Financial Reporting Regime in Malaysia

1. Financial Reporting Regime in Malaysia

2. Objectives • Demonstrates the difficulties & controversies surrounding FR in Malaysia • Identifies the external influences, which shape FR in Malaysia • Case study

3. Key players in the FR process • Accountant General’s Office (AcGO) • Strives to improve public sector accountability • Manages the nation’s accounting & financial aspects, in accordance with • Financial Procedure’s Act 1957 • Unclaimed Monies Act 1965 • Pension Fund Act 1991 • Plays a vital role- link between the private & public sector accounting

4. Key players in the FR process • MIA • Set professional requirements for accountants • Conduct research • Publishes materials related to accounting, auditing, attestation & assurance services, mgmt consulting services & taxes

5. Key players in the FR process • The Companies Commission of Malaysia (CCM) • Integrates the activities of the former of ROC & ROB • Ensures • Identifies issues that impact the FR environment • Enhancement & promotion of the supply of business and corporate information • Acting as agent of the Government & providing services in collecting & enforcing payment of prescribed fees • Regulating matters relating to corporations, companies & businesses • Encouraging & promoting proper conduct amongst directors, secretaries & other officers of a corporation • Enforce the actg std

6. Key players in the FR process • Central Bank (Bank Negara Malaysia / BNM) • Issues currency & keeps reserves safeguarding the value of the currency • Act as a banker & financial adviser to the Government • Promote monetary stability & a sound financial structure • Influence the credit situation to the advantage of the country • Enforce the actg std

7. Key players in the FR process • Securities Commission (SC) • To promote a strong & healthy securities market • Maintain the confidence of investors • Supervising exchanges, clearing houses & central depositories • Registering authority for prospectuses of corporations other than unlisted recreational clubs • Approving authority for corporate bond issues • Regulating all matters relating to securities & future contracts, unit trust schemes, take-over & mergers of companies • Licensing & supervising all licensed persons • Encouraging self-regulation • Ensuring proper conduct of market institutions & licensed persons • Enforce actg std

8. Key players in the FR process • Securities Commission (SC) • Played a significant role in the establishment of FRA 1997 • Regulates corporate sector – annual report of listed companies • Enforce the stds issued

9. Key players in the FR process • MASB • Established under FRA 1997 • Run under the financing arrangements made by FRF • Develop & issue accounting & reporting stds • develop FR framework with the involvement of all relevant parties • Preparers, users, regulators & the actg profession

10. Key players in the FR process • The corporations – Directors & mgmt • Ensures the preparation of company’s account comply with stds ( Companies Act 1998, Sec 166A(3)) • Specifically state in the Statement of Directors (Sec169(15c)

11. Key players in the FR process • Public Accounting Firms • Audit limited companies (Companies Act 1995) • Provide tax & consulting services • The largest PAF – ‘Big 4’

12. Role of the Profession in Actg Std Setting • Provide input to MASB • Educate members • Providing interpretation & guidelines on the std issued

13. Key players in Financial reporting • SC, Central Bank, CCM • Corporations-Directors, Audit Committees, Internal Auditors • External Auditors • Accounting Profession-MIA • Financial Statements/ Standards-MASB/FRS • Investors/Public