Financial Reporting in Malaysia • Accounting profession is crucial component of the capital market. • The Securities Commission is entrusted with the responsibility to regulate the public listed companies. • The Central Bank regulates the financial institutions, insurance and cooperatives. • Companies Commission of Malaysia regulates all companies (public and private limited) under Co. act 1965.
Ministry of Finance • Accountant general office (Public Sector + Audited by Auditor General) • MIA • Financial Reporting – regulate MASB • Securities Commission (private sector) • Central Bank (private sector) • Companies Commission of Malaysia (private sector)
Accountant General Office (Jabatan Akauntan Negara) • Human resource and career development • Accounting standards for public sector • Accounting and Financial consultations • Pension trust fund • Accounting for payments and receipts • Annual public accounts
MIA & Auditor General • MIA Members are Chartered Accountant • Auditors are licensed by MIA • MIA set professional requirements, research and publish materials. • Auditor General- ensure the compliance of accounting and reporting standards
Companies Commission of Malaysia (CCM) • CCM is set up to amalgamate the ROC and ROB. • Need to ensure acts and laws are complied with: • Companies Act 1965, Trust Co Act 1949, Registration of Business Act 1956 etc. • CCM is represented by both MIA council and MASB.
Central bank- Bank Negara Malaysia • Established on 26 Jan 1959 • Issue currency, banker and financial adviser to government, promote monetary stability and influence credit. • Regulate CBMA 1958/1994, BAFIA 1989, Exchange Control Act 1953, IBA 1983, Insurance Act 1996, Takaful Act 1984,Loan Ordinance 1959,Treasury Bills Act 1946/1977, Govt Investment Act 1983.
Securities Commission • Set up under Securities Commission Act 1993. • To promote strong securities market and investor’s confidence. • Self funding statutory body with investigative and enforcement power. • To supervise exchanges, clearing houses, approve bond issues, regulate all matters with securities and future contracts, unit trust, license and proper conduct of market • SC enforce the standards issued by MASB.
Malaysian Accounting Standard Board (MASB) • Established under Financial reporting act 1997. • To develop and issue accounting and financial reporting standards. • -issue new standards, review, revise and adopt, public consultation, develop conceptual framework etc.
Disclosure Based Regulation (DBR) • Disclosure is crucial to investor for investment decision. • Due diligence is a process to disclose all information in full, timely and accurate. • Corporate Governance is the process and structure to direct and manage the business towards enhancing business prosperity and accountability toward realizing long term shareholder value.
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