Development of Financial Reporting in Malaysia

12 Questions

Who appoints the members of the Malaysian Accounting Standards Board (MASB)?

The Minister of Finance

What is the role of the MASB in the financial reporting environment in Malaysia?

To develop and promote high quality accounting and reporting standards consistent with international best practices.

What are some examples of professional bodies mentioned in the text?

MICPA, ACCA, CIMA, CTIM

How does the MASB contribute to the international development of financial reporting?

Directly

What is the role of the Malaysian Accounting Standards Board (MASB) in the development of financial reporting in Malaysia?

MASB adopted IAS and MAS standards and made compliance with these standards mandatory for companies.

How did the Financial Reporting Act 1997 impact financial reporting in Malaysia?

It led to the establishment of the Financial Reporting Foundation (FRF) and MASB, making compliance with MASB approved accounting standards mandatory.

What was the significance of the MASB changing the name of its standards to Financial Reporting Standards (FRS) in October 2005?

It marked a transition to using FRS instead of MASB Standards for financial reporting.

When was the Two Tier Reporting Framework introduced in Malaysia and what was its purpose?

It was introduced in February 2006 to provide a framework for different reporting requirements for entities based on their size and complexity.

Who makes up the frameworks for financial reporting in Malaysia?

The MASB and the Financial Reporting Foundation (FRF)

What is the role of the Financial Reporting Foundation (FRF) in relation to the MASB?

The FRF oversees the MASB's performance, financial arrangements, and provides initial views on proposed standards but has no direct responsibility for standard setting.

Which bodies have the power to ensure compliance with accounting and financial reporting standards in Malaysia?

Securities Commission Malaysia, Bank Negara Malaysia, Bursa Malaysia, and the Companies Commission of Malaysia

What is the main responsibility of the Securities Commission Malaysia?

To develop, regulate, and provide a safe investment platform for capital market investors, including protecting investors' rights against fraud and misconducts.

Study Notes

Malaysian Accounting Standards Board (MASB)

The members of the MASB are appointed by the Minister of Finance.
The MASB plays a crucial role in the financial reporting environment in Malaysia by issuing and enforcing financial reporting standards, guiding the preparation of financial statements, and promoting transparency and accountability.

Professional Bodies

Examples of professional bodies mentioned in the text include the Malaysian Accounting Standards Board (MASB) and the Securities Commission Malaysia.

International Development of Financial Reporting

The MASB contributes to the international development of financial reporting by adopting International Financial Reporting Standards (IFRS) and ensuring that Malaysian accounting standards are consistent with global best practices.

Role of MASB in Financial Reporting Development

The MASB plays a key role in the development of financial reporting in Malaysia by setting and enforcing financial reporting standards, promoting transparency and accountability, and guiding the preparation of financial statements.

Financial Reporting Act 1997

The Financial Reporting Act 1997 reinforced the importance of financial reporting in Malaysia, requiring companies to prepare financial statements in accordance with approved accounting standards.

Financial Reporting Standards (FRS)

In October 2005, the MASB changed the name of its standards to Financial Reporting Standards (FRS) to emphasize the importance of financial reporting and to align with international practices.

Two Tier Reporting Framework

The Two Tier Reporting Framework was introduced in Malaysia in 2003, allowing smaller companies to prepare simplified financial statements, while larger companies were required to prepare more detailed financial statements.

Framework for Financial Reporting

The frameworks for financial reporting in Malaysia are made up by the Malaysian Accounting Standards Board (MASB) and the Securities Commission Malaysia.

Financial Reporting Foundation (FRF)

The Financial Reporting Foundation (FRF) supports the MASB by providing funding, resources, and expertise to develop and implement financial reporting standards.

Compliance with Accounting and Financial Reporting Standards

The bodies responsible for ensuring compliance with accounting and financial reporting standards in Malaysia include the Securities Commission Malaysia, the Malaysian Accounting Standards Board (MASB), and the Bursa Malaysia.

Securities Commission Malaysia

The main responsibility of the Securities Commission Malaysia is to regulate and oversee the securities and capital markets in Malaysia, ensuring that companies comply with accounting and financial reporting standards.

Learn about the evolution of financial reporting in Malaysia, including the adoption of International Accounting Standards and the development of local Malaysian Accounting Standards.

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