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Accounting in Malaysia

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The accountancy profession in Malaysia is regulated by the Malaysian Institute of Accountants (MIA) through the powers conferred by the Accountants Act, 1967. [1] The MIA is an agency under the Ministry of Finance and reports directly to the Accountant General Office. As at 04 February 2016, MIA has 32,618 members of which 68% are involved in commerce and industry, 22% in public practice and 10% in government and academia. Selangor and the Wilayah Persekutuan Kuala Lumpur]] Federal Territory have the largest concentration of MIA membership with 13,125 and 7,351 members respectively. http://www.mia.org.my/new/members_statistics_state.asp

MIA sets the By-Laws (On Professional conduct & Ethics) and auditing standards for the accountancy profession in Malaysia, which are in line with the standards issued by the International Federation of Accountants (IFAC) and the International Auditing and Assurance Standards Board (IAASB).

Other Accountancy Bodies in Malaysia

The Malaysian Institute of Certified Public Accountants (MICPA), which was established in 1958, is another accountancy body that is involved in the training and development of accountants in Malaysia.[2] Apart from that, accountancy bodies from the Commonwealth countries such as the Association of Chartered Certified Accountants (ACCA), Chartered Institute of Management Accountants (CIMA), the Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants in Australia (ICAA) and CPA Australia are also active in training and developing Malaysians towards attaining professional accountancy qualifications.

Accountancy Education

Accounting courses are offered both by the public and private higher education institutions in Malaysia. Presently, accountancy degree from 11 institutions of higher learning are recognised for the purpose of admission to the membership of MIA.[3] Some of the institution of higher learnings also offer programmes leading towards attaining professional accountancy qualifications such as ACCA, CIMA, ICAEWCPA Australia and MICPA.

Accounting Standards

Accounting standards are issued by the Malaysian Accounting Standards Board (MASB) by virtue of the power conferred by the Financial Reporting Act, 1997.[4] The Financial Reporting Act also establishes the Financial Reporting Foundation, which is the body that is responsible to oversee MASB's performance and financial arrangement.[5]

The MASB had announced the effort to bring Malaysia to be in full convergence with the International Financial Reporting Standards (IFRS) by 2012.[6]

Accounting Firms in Malaysia

As at 30th June 2015, there are 1,407 firms which are offering auditing services and another 836 firms providing other accountancy related services http://www.mia.org.my/new/circularandresources_miaannualreport.asp .[7] Most of the global networks of accounting firms such as Ernst & Young, Deloitte, KPMG, PricewaterhouseCoopers, BDO, Geneva Group International, Crowe Horwath, Baker Tilly, Urbach Hacker Young and Grant Thornton have their presence in Malaysia.

Accounting firms have to be registered with MIA and members of MIA who wish to offer public practice services should also possess practising certificate issue by MIA. However, specific approvals should be obtained to provide the following services:

  • Audit of limited companies; approval to be obtained from the Ministry of Finance and firms should be registered with the Companies Commission Malaysia
  • Audit of co-operative societies; approval to be obtained from the Malaysia Co-operative Society Commission
  • Audit of banks and financial institutions; approval to be obtained from Bank Negara Malaysia
  • Tax agent services, approval to be obtained from the Inland Revenue Board
  • Receivership and liquidation services; approval to be obtained from the Ministry of Finance
  • Financial planning; approval to be obtained from the Securities Commission Malaysia

See also

References

  1. ^ [1] Official website of the Malaysian Institute of Accountants, Accountants Act, 1967
  2. ^ "Archived copy". Archived from the original on 2008-11-20. Retrieved 2008-11-08. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)CS1 maint: archived copy as title (link) Official website of the Malaysian Institute of Certified Public Accountants, About MICPA
  3. ^ [2] MIA membership application guidelines
  4. ^ [3] Official website of the Malaysia Accounting Standards Board, Financial Reporting Act, 1997
  5. ^ [4] Official website of the Malaysian Accounting Standards Board, Financial Reporting Foundation
  6. ^ [5] Official MASB website, Press release by FRF and MASB
  7. ^ [6] The MIA Annual Report, 2008
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