Financial Reporting in Malaysia. 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.
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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