(A) ROADSHOW ON CONVERGENCE WITH IFRS
In conjunction with the Convergence Plan to changeover to IFRS in 2012, we have conducted roadshows, with the assistance of the Malaysian Institute of Accountants (MIA), in the following city/towns to bring together stakeholders and interested parties on how they can embrace the convergence effort into their strategic and operational initiatives towards 2012 and beyond.
||6 Oct 2008
||23 Oct 2008
|Kota Kinabalu, Sabah
||17 Nov 2008
||18 Nov 2008
Below are some points raised by participants during the roadshows.
What does convergence mean?
Convergence with IFRS means full compliance with IFRS as a basis for financial reporting system in Malaysia.
Education and training
Academicians were encouraged to incorporate IFRS into its universities' syllabus / curriculum to equip students with IFRS knowledge. With this effort, students will be equipped with current issues in the industry which will be useful to them when they join the work force after graduation.
Research and field-testing
It was acknowledged that everyone in the financial reporting chain, including preparers of financial statements, has to play a role in order to make the research and field-testing exercise a success.
The tax authority and the Malaysian Institute of Taxation should be made aware of the convergence plan. This will expedite efforts to reduce divergence between the accounting and tax rules and provide a smoother transition to the IFRS regime.
IASB standards in the pipeline
It was suggested that the planned effective dates of the upcoming new and revised FRS be made known to the public in order for preparers of financial statements and other interested parties to plan early and prepare for the adoption.
The Financial Reporting Standard Implementation Committee of the Malaysian Institute of Accountants could assist preparers of financial statements in the implementation of accounting standards. Preparers of financial statements were encouraged to submit their issues to FRSIC. It was emphasised that the FRSIC has a critical and important role to play in the convergence plan as they will be able to assist preparers in the transition to IFRS regime.
It is important for MASB to seek co-operation among standard-setters in this region so as to put across views to the IASB, especially on common issues faced within the region.
(B) DIALOGUE ON CONVERGENCE WITH IFRS
A dialogue was also held with major parties in the financial reporting chain to discuss initiative to be taken by the respective parties in the migration to the IFRS regime and action plans to strengthen the state of readiness by 2012.
The main issues discussed were:
- education and training;
- communications about IFRS changeover;
- differences between tax rules and IFRS requirements;
- state of readiness of lecturers;
- communications with media;
- international perception; and
- MASB due process.
Education and training
It was established that education and training is one of the critical factors in facilitating a successful transition to IFRS in 2012.
The Malaysian Institute of Accountants (MIA) informed that they will be providing trainings relevant to the changeover plan to help equip preparers and audit firms with the required IFRS knowledge.
The MIA Financial Reporting Standards Implementation Committee will also be conducting road shows around the country in the near future to promote awareness of the convergence plan and to encourage the industry to prepare early.
Communications about IFRS changeover
It was suggested that the regulators to require preparers to provide narrative disclosures relating to the changeover to IFRS in their annual report. It was noted that similar requirements were put in place by other countries during their transition to IFRS from its local GAAP.
Differences between tax rules and IFRS requirements
Concerns were raised on the differences between tax rules and IFRS requirements. It was suggested that greater efforts need to be put in place to converge accounting and tax rules.
State of readiness of lecturers
It was suggested that the MIA together with other professional bodies and the accounting firms to organise a forum as a platform for universities to address this issue.
Communication with media
Effective communication with media will assist to disseminate information will regard to the convergence plan.
MASB due process
MASB due process may be reconsidered in due course so as to minimize the time gap in the adoption of IFRSs issued by the International Accounting Standards Board (IASB).