STANDARD SETTING IN MALAYSIA.

Introduction Accounting standard refer to a set of standards starting how particular type of transactions & other events should be reflected in financial statements. It issued by accounting standard setters. Application in the preparation and presentation of financial statements govern by regulatory or professional bodies. Development of financial Reporting in Malaysia The demand for corporate information by capital provider & other stakeholder. User has been initiated by Ninth Schedule of the companies Act 1965 requiring companies to disclose minimum information. The IASC was responsible for IAS. The guidelines issued by the IASC , Malaysia adopting IASs. The adoption lead more comprehensive disclosure of corporate information, it was not able to meet some local reporting requirements. Malaysia Accounting Standards Board( MASB) Standard setting role by MIA & MICPA superseded by MASB in 1997. MASB established under FRA 1997. The Act gazetted on 6 march 1997. The Act also created FRF. The responsibility of FRF to oversee the operating activities of MASB. FRf comprises 19 member appointed by Minister of finance. 7 member ( ex-officio representing the minister of finance, the central bank, the securities Commission, the Companies Commission of Malaysia, The Bursa Malaysia Berhad, The MIA, and the MASB. 12 members ( representing a broad spectrum of interest group) The responsibilities of FRF under the Financial reporting Act 1997. To provide view of the MASB on matters which MASB seeks to undertake or implement with respect to the development and issue of accounting standards & conceptual framework. To review the performance of MASB. To be responsible for the financing arrangements and operation of the MASB. To approve the MASB budget.

To engage or to employ persons & determine the condition of appointments to assist the FRF & MASB perform their function under Act. The Function & power MASB. Issue new accounting standards as approved accounting standards & to review, revise existing accounting std. Issue statements of principles for financial reporting. Sponsor/undertake development of possible accounting std. Conduct public consultation as necessary. Develop a conceptual framework for the purposed accounting std. Make such changes to propose accounting std as considered necessary. Seek the view the FRF in relation to new or existing standards, statement of principles & changes to proposed std. Determine scope & application of accounting std. To perform such other function as Minister of Finance. Function MASB Formulated in its mission statement. To develop & promote high quality & reporting std that consist benefit of users, preparers, auditor & public in Malaysia. To contribute directly to the international development of financial reporting. To fulfilling above function, MASB set the objective: To develop high quality, clear & enforceable national accounting std for benefit of user. To bring harmonisation of national accounting std with international accounting std. To promote the use & application of std by communication. To promote & support research in area of financial reporting. The member MASB, a chairman, The accountant general, advisors representing the securities Commission, Companies Commission of MIA and 6 member with expertise in accountancy, law, business & finance. Issues committee Was established in 2002, replacing its predecessor, the interpretation committee. Change name reflect the expanded scope of committee. Deal with other accounting related issues where no existing accounting std.

Its comprise representative from accounting profession, commerce, the academia as well as an analyst and solicitor. working group. MASB established numerous working groups are assigned with different projects. It is responsible for reviewing & undertaking detailed studies of the assigning project follow to statutory & regulatory reporting requirement. Group member include a project manager & representatives from accounting profession, commerce, academia as well as regulatory authorities. MASB Due Process 1.MASB 2.Working Group IAS for review Prepares Discussion Paper (DP) 4.FRF Review DP 3.MASB Review DP 6.Public Public Exposure of ED Identifies

5.MASB Finalises DP into Exposure Draft

8.MASB 7.Working Group Review feedback on ED Prepare report on feedback received on ED. 9.FRF Final review of feedback on ED Technical Pronouncements The MASB may also issue technical pronouncements such as Statement of Principles (SOP), Technical Releases (TR) and Interpretation Bulletin. Purpose: to provide guidance on the application of generally accepted accounting principles. 10.MASB Approval of MASB standards followed by issue of MASB stds

International Accounting Standards 1/8/2008: MASB issued a statement with regards to its plan for full convergence of FRSs applicable in Malaysia with IFRSs issued by IASB by the year 2012 for all entities other than private entities. Full convergence: full compliance with IFRS as a basis for financial reporting system in Msia. So, MASB participate actively in the IASBs due process at an early stage of stds development to ensure stds adopted are consistent with international best practice as well as regulatory requirements in Msia. The International Accounting Standards Board (IASB): An independent & privately-funded accounting standard-setting

body & responsible for the development & publication of IFRSs, including the IFRSs for SMEs & for approving Interpretation of IFRSs as developed by the IFRS Interpretations Committee(formerly IFRIC). -Objectives; To develop a single set of high quality, understandable & enforceable global accounting stds that require high quality, transparent & comparable information in financial statements & others financial reporting to help participants in the worlds capital markets & others users make economic decisions. To promote the use & rigorous application of those stds. In fulfilling the objectives associated with (a) & (b), to take account of, as appropriate, the special needs of small & medium-sized entities & emerging economies. To bring about convergence of national accounting stds & IFRSs to high quality solutions. -Main features; The IASC Foundation (IFRS Foundation) has 2 main bodies, the Trustees & the IASB. Objectives: to develop a set of high quality, understandable, enforceable & globally accepted financial reporting stds through its std setting body (IASB). The IASB is responsible for setting accounting stds. 2 other bodies; Standards Advisory Council & IFRS Interpretations Committee. Trustees Members must be selected from Asia/Oceania region (6), Europe (6), North America (6), Africa (1), South America (1) & remaining parts of world (2). Accountable to the Monitoring Board of public authorities undertaken by IASC Foundation & IASB. Review and assessed annually the IASB strategy. Responsible for safeguarding the independence of IASB, ensuring the financing of the organization & the appointment of IASB members Responsible amending the operating procedures, consultative arrangements & due process for IASB, the Interpretations Committee & Advisory Council; -The IFRS Interpretations Committee: the interpretative body of IASB. Members appointed by Trustee. The Committee provides timely guidance on accounting issues that have arisen

within context of current IFRSs & to provide authoritative guidance (IFRICs) on those issues.