Accounting in Malaysia
Encyclopedia
The accountancy profession in Malaysia is regulated by the Malaysian Institute of Accountants
(MIA) through the powers conferred by the Accountant
s Act, 1967. The MIA is an agency under the Ministry of Finance and reports directly to the Accountant General Office. As at 30 June 2008, MIA has 24,719 members of which 65% are involved in commerce and industry, 27% in public practice and 7% in government and other sectors. Selangor
and the Kuala Lumpur
Federal Territory have the largest concentration of MIA membership with 9,697 and 6,118 members respectively.
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).
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.
institutions in Malaysia. Presently, accountancy degree from 11 institutions of higher learning are recognised for the purpose of admission to the membership of MIA. Some of the institution of higher learnings also offer programmes leading towards attaining professional accountancy qualifications such as ACCA, CIMA, ICAEW and MICPA.
The MASB had announced the effort to bring Malaysia to be in full convergence with the International Financial Reporting Standards
(IFRS) by 2012.
, Deloitte, KMPG, PricewaterhouseCoopers, BDO, Howarth, 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:
Malaysian Institute of Accountants
The Malaysian Institute of Accountants is a statutory body responsible to regulate the accountancy profession in Malaysia. It is the sole organisation in Malaysia with the right to determine whether or not a person is qualified to be recognised as an accountant by virtue of the power provided by...
(MIA) through the powers conferred by the Accountant
Accountant
An accountant is a practitioner of accountancy or accounting , which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.The Big Four auditors are the largest...
s Act, 1967. The MIA is an agency under the Ministry of Finance and reports directly to the Accountant General Office. As at 30 June 2008, MIA has 24,719 members of which 65% are involved in commerce and industry, 27% in public practice and 7% in government and other sectors. Selangor
Selangor
Selangor also known by its Arabic honorific, Darul Ehsan, or "Abode of Sincerity") is one of the 13 states of Malaysia. It is on the west coast of Peninsular Malaysia and is bordered by Perak to the north, Pahang to the east, Negeri Sembilan to the south and the Strait of Malacca to the west...
and the Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
Federal Territory have the largest concentration of MIA membership with 9,697 and 6,118 members respectively.
MIA sets the By-Laws (On Professional Conduct
Professional conduct
Professional conduct is the field of regulation of members of professional bodies, either acting under statutory or contractual powers.Historically, professional conduct was wholly undertaken by the private professional bodies, the sole legal authority for which was of a contractual nature...
& Ethics
Ethics
Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about morality—that is, concepts such as good and evil, right and wrong, virtue and vice, justice and crime, etc.Major branches of ethics include:...
) and auditing standards for the accountancy
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
profession in Malaysia, which are in line with the standards issued by the International Federation of Accountants
International Federation of Accountants
International Federation of Accountants is the global organization for the accountancy profession. IFAC has 164 member and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants employed in public practice, industry and commerce, government, and academe...
(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. Apart from that, accountancy bodies from the CommonwealthCommonwealth
Commonwealth is a traditional English term for a political community founded for the common good. Historically, it has sometimes been synonymous with "republic."More recently it has been used for fraternal associations of some sovereign nations...
countries such as the Association of Chartered Certified Accountants
Association of Chartered Certified Accountants
Founded in 1904, the Association of Chartered Certified Accountants is the global body for professional accountants offering the Chartered Certified Accountant qualification . it is one of the largest and fastest-growing global accountancy bodies with 147,000 members and 424,000 students in 170...
(ACCA), Chartered Institute of Management Accountants
Chartered Institute of Management Accountants
The Chartered Institute of Management Accountants is a United Kingdom-based professional body offering training and qualification in management accountancy and related subjects, focused on accounting for business; together with ongoing support for members.CIMA is one of a number of professional...
(CIMA), the Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants in Australia (ICAA) and CPA Australia
CPA Australia
CPA Australia is one of three professional accounting bodies in Australia, the others being the Institute of Public Accountants and the Institute of Chartered Accountants of 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 educationHigher education
Higher, post-secondary, tertiary, or third level education refers to the stage of learning that occurs at universities, academies, colleges, seminaries, and institutes of technology...
institutions in Malaysia. Presently, accountancy degree from 11 institutions of higher learning are recognised for the purpose of admission to the membership of MIA. Some of the institution of higher learnings also offer programmes leading towards attaining professional accountancy qualifications such as ACCA, CIMA, ICAEW 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. 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.The MASB had announced the effort to bring Malaysia to be in full convergence with the International Financial Reporting Standards
International Financial Reporting Standards
International Financial Reporting Standards are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board ....
(IFRS) by 2012.
Accounting Firms in Malaysia
As at 30 June 2008, there are 1,348 firms which are offering auditing services and another 650 firms providing other accountancy related services. Most of the global accounting firms such as Ernst & YoungErnst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
, Deloitte, KMPG, PricewaterhouseCoopers, BDO, Howarth, 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 MalaysiaBank Negara MalaysiaBank Negara Malaysia is the Malaysian central bank. Established on January 26, 1959 as the Bank Negara Malaya, its main purpose was to issue currency, act as banker and adviser to the Government of Malaysia and regulate the country's credit situation...
- 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
- International Federation of AccountantsInternational Federation of AccountantsInternational Federation of Accountants is the global organization for the accountancy profession. IFAC has 164 member and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants employed in public practice, industry and commerce, government, and academe...
- Confederation of Asian and Pacific AccountantsConfederation of Asian and Pacific AccountantsThe Confederation of Asian and Pacific Accountants represents national professional accounting organisations in the Asia-Pacific region....
- Asean Federation of AccountantsAsean Federation of AccountantsThe Asean Federation of Accountants is the body that represents the accountancy profession in the Asean region. AFA was established in 1977 and is led by a Council consisting the representatives of the national accounting bodies of the 10 member countries in Asean.The members of AFA are:**,...
- International Auditing and Assurance Standards BoardInternational Auditing and Assurance Standards BoardThe International Auditing and Assurance Standards Board is the independent standard setting body which issue auditing, review, other assurance related services and quality control standards to be applied by the global auditing profession...