DH[1O[OS MAKES ROP. ‘SIDC Capital Market Graduate Training Programme 1 30 October 2003 ‘on fo the Malaysian Capital Market ‘Module 1: Understanding Financial Markets and introduct SESSION 4 MALAYSIAN ACCOUNTING STANDARDSDR NOORDIN MOHD ZAIN, TECHNICAL DIRECTOR, MALAYSIAN ACCOUNTING STANDARDS BOARD(MASB)_ Dr Nordin Mohd Zain is the Technical Director of the MASB. He was one of the founding board members of the MASB when it was established in 1997. In May 2000, he was appointed as the Technical Director of the Board and has been responsible for the development of conventional accounting standards) Istemic ‘accounting standards and also responsible for the administrative functions of the FRF and the MASB. He obtained his PhD in Strategic Management of Information Systems from the Strathclyde Graduate Business Schoo! in Glasgow, UK and held a Masters and Bachelors degrees in Accounting. He started his career as an internal auditor with Kwong Yik Bank Berhad (now RHB Bank Berhad) and as an Assistant Manager in Corporate Banking Division of the Bank for six years. He later joined the International Isiamic University Malaysia as the Head of the Department of Accounting and had been Involved in various consulting assignments including those with the United Nations.ase % Feo, + The viay forward for graduates of ——__—____—_., EEE ELEC ok MALAYSIAN ACCOUNTING STANDARDS and ‘Their Relevance to Graduates Undergoing SC’s Training Program —_WTJo—_ © — De oe ae sso try Sd faecal 3 tober 2009 — Regulatory structure Epo eg erCEER EEC + Aistory of accountng standards setting In briet geese rpg peer e «+ Establishment of MASB + Standard setting process + International development — |. in Malaysia = Companies Ordnance 1940 * Companies Act 1965 * Securities Industry Act * KLSE Usting Requirements = Bank Negara Guidelines * Code of Corporate Governance 200% 1 Financial Procedure Act 1957 (MOF) 1 Audit Act 1957 - Office ofthe Autor General = Aca Kerajsan Tempatan 1976 (Akta 171) = MASE Seandords oners fo MOY, AS Overview: Regulatory Framework |4/ & d Sraccidl disigivgANBMBNE Gssypeeus, - Purpose: Regulatory Framework in wate Malaysia a romate integrity of financial icine x ings + To safeguard stakeholders interest + To enhance transparency in corporate deal + To facttate access to capital + To-stensthen capital market structure | FWY + To enhance investors confidence + To promote cross border sting — WES + To promote corporate goverance ( omntOunn sya rraccagmente wees Sereda (rans erreres) eee acee eee dealings & Unaic plays . TAMA VRAIN de indy Sa AOS WIS oof A History In Brief + Titties to regulate accounting races Se PKS aac Yq Maye ims 131 ap 1 BB nik Tori Cmte omy MuC +12" br Wen ad ta x sane aati 50977 eon pra ped Pen Sendo ik Mae ae he ANS recadak aqannting, repAds, Congo OAR NOD FID os GnQues Fc 1S Ret awurting yoda eee ene TSB wa bes de Mnacdal Keguning Ber At tach G46 fe Establishment of MASB + Parliament of Malaysla gazetted Financial Reporting Act in March 1997 + stobshed Financial Reporting Foundation (FRE) + Estobshed Malaysian Accounting Standards Board (ASB) Tre snntorrents WR eG wren, veep ds. roundel onatlet LMASOS. 2 Bedtes,oak Financial Reporting Framework nancial Reporting Act 1997 eee eta (ae ee = aa ) een pee rear Fine Pundanad MARTH Fre yond vegarnd, wits ec noeEe EB Financial Reporting Act 1997 * Rae noon RR HAS ee + Bite cnn nds ed stg standards Fee eee eee + neta 7 ty Sis ere 1 be raped te ar OO Sea eee massac poate aay ee + Mn te emma cosy Saris yas” OP th cn psa AE aera ot: Financial Reporting Foundation pee Somat ot mete ay Vans lea The, FRES Po Wo HG ae dy the Mage rsd Wen ee — a eee eeeMalaysian Accounting Standards Board _ lite ines de arstaAIs ~Tea Ave. ote The wly fo Ave tots FonhRemmahites Comsien a pee 2, i God \igue_ Seine Sermon!) sh eee a Sean sone aciNNGy Sendads | = Lewes G Cyndodk ac asc Fees «ots ca tot excl * Sialeorrers PRA sa, Financial Reporting Act 1997 59m 40K, Fr docnrttea, dondad bu, mse is Waal oat What's new? ~ Section 27 of FRA 1997 confers MASS Standerds the force of iw Si Genestie cea = re ere mda 1 agente + Daseate,oepenent boy tase standards 1 Bxpanded oe to develop new accountng standares nok addressed by IASB, Including {slams Acpounting Standards QO Ae koehnad ee Avr ACN sestod's Vader Or Wve pare A Heatrradnacyn dy Neourked, a WOaN en 2S GHG Pust_Vdren (AK -ae Standard Setting Process “Due Process” indovelepment of the Standards, Duo WOWSS - wordycend (HOSS Vartychen dy, Presson * x? WMO Spe ” Hove ROWS wo er! tn daidsidy Re ju vatao To-date ‘= 82 MASB Standards + 1 Islamio ‘accounting standard = 2 Technical Releases: + 68 Exposure Drafts * Developing Islamic Accounting ‘Standards «= Translation of 9 Standards1 Reged en sua MASB Standards ieee Soe | Sen a YeGheenome Siamese Se peace MASB Standards _ Boeereee 1 imma rsrmer: done cal, NASB Exposure Drafts Under review - to issue as Standards + Unit trusts (ocaly developed stancar) + Investment Property «Financial Instruments: Recogrition & Measurement Lory davolyud Su oad ah Aeass evecare reece eeeeeeeeeeeece ee ee (areca eseeeeeeeeeeeecee eeenak MASB Technical Releases «TR 4 Share Buybacks TRE YOK + MASB Statement of Principles 2-1 Exempt Enterprises 4 Work Group + Formato suppor to technical ta of MASS in Earying out Gealopmart and research work + Ghaedby MASE Bosré marber, Projet Manager howldpeeble and exporanced inthe fl and ‘Sho group mere wi terest te area + working ras: nung lame Frei eporing woking gtoup and Tresiatonak Work Group mechanism LED ee What's New? Development of ak Islamic Accounting Standards + Need fr Islamic Accounting Standards Doveloprent of isamic Capt Maret omic Bening + Now Fran Irsramens + Similar due process buted — jared ae = eGonetog) Sendowch = MMO Ahares ani Aceon, Senda ‘= PRESENTATION OF FINANCIAL STATEMENTS OF ISLAMIC FINANCIAL, INSTITUTIONS + The frst accounting Standard for application by Islamic Financial nsttutions in Malayeia. + Issued on 81 Dec 2001 + Effective 1 Jan 2008ake More to come _ Standard on ljarah & Varah Muntania- Bitamicek (it, Lease & Salo Leasoback) ‘= Standard on Murabahah (it, Mark up cafe) 1+ Standard on Mudharatah (it, Joint venture) * Takatul (it, Insurance) ‘© Zokat (lit The or taxes) (hs RI FAQs * Position and relationship of MASB vis- avvis MIA, MIGPA = Why is there a need for Islamic Accounting Standards = What's so different in Islamic Accounting Standards = What is IASC? IASB? IAS? IFRS? nora as ee ) Mh - Sundad sektey \id —_ rembytnip lad ae xaenbeatien load Dev cept cole, tnyadwutue Invaswucue. ; ns “th rg Sp ene Rh cradle atic Gave eee eae MT MIE LL eruiRomneant. Sundog Baw. Changing International safe tendscape + Reconstitution of Intemational Accounting ‘Standards Board to replace International ‘Accounting Standards Committe in ADT 2001 + ASetof Single Glbal Accounting StandardInternational Accounting Standards za Board IASB's mission «A single set of global accounting standards 1 TASB's enhanced structure + Worldwide representation, independence (of members, and technical expertise | He Shoda MAAS Grcithee = Ghnres. 00% ue | ~f Implications of IASB's initiatives 1 Growing worldwide acceptance of TASB standards (IFRS) as countries’ national Standares = BU 2005, Australia 2005+ 35 other ‘counties to fly adopt Ss CRS) + Significant shifts in concept 1 Histrical cok =O Fate Vale 1 Income (==> Balance Sex : Recquntinc sono | | Whew Francal Cee) Skadoa. (ees Bredgiadin Baan ot Other Global Development ‘= Accounting and Auditing Organisation for Islamic Financial Insttuitons (AAOTFI) = 16 Accounting 4 Ausiting ‘+ 4 Shariah standards \ pee \fse -~. 2% bo =O dre press a Jz What would MASB do? 1 More active participation in TAS8's due process 1 Active participation in AAOIFT + The role may be expanded to become @ ‘conduit for feedback on international ‘accounting standards ot Implications On Graduates of CMGTS ‘+The boy of knowiedge in accounting may nt be the same aga! 1 Accountants (YOU) shouldbe ewipped accordingly 1+ Incresed importance of sami Accounting + EDUCATION e KEY mTConclusion = Things re changing, nevtaby + Final artes nie 1+ Accountants need to change 1 pecountants need © prepare for change Simpl advice: Chobe A wsaeot Useful Information Y(2 DEBi22\ Ve. Nod. Website: wuw.masb.orgmy ‘Standards and GDs are obtainable at Malaysian Accounteg Stands Board Suet 01-50, Fith Floor £398 dlanTuanky Abdul Ran ‘50700 Kuala Lmpur Ter 460527150109 Fac +508 2716-0012 E-mail masb@pojiring my "or rorainemash gy WAG nado O44 a Discussion +1 Rose. ¥ Staveof Exposure Draft 8 tk ‘Standard