Malaysia To Fully Converge With IFRS In 2018

KUALA LUMPUR, Nov 30 (Bernama) -- Full adoption of the International Financial Reporting Standard (IFRS) as a standard in Malaysia is set to be effective Jan 1, 2018. Malaysian Accounting Standards Board (MASB)chairman Mohamed Raslan Abdul Rahman said Malaysia had managed to converge 80 per cent of the standard according to the IFRS from 2012. "We are on track to achieve full convergence and adoption of the global standard, which is used in more than 100 countries. "The International Accounting Standard Board (IASB) deferred the 'IFRS 15', so we followed suit. We will be 100 per cent convergent by Jan 1, 2018. "We are now overcoming the issues in agricultural standards and the percentage of completion in property development. We are nearly there in having solved most of the problems," he added. Mohamed Raslan told a press conference this after the Malaysian Institute of Accountants (MIA) and Asian Institute of Finance (AIF) organised talk by Sir David Tweedie, Chairman for the Board of Trustees, International Valuation Standards Council. Tweddie spoke on the, "Reflections on a Journey of an IFRS Standard Setter". Mohamed Raslan said the implementation of the new framework for private entities, which is the Malaysian Private Entities Reporting Standard (MPERS) by Jan 1, 2016, is already part of the convergence. This is when, by next year, Malaysia will adopt the IFRS in small and medium enterprises (SMEs). The MPERS is almost identical to the IFRS for SMEs set by the IASB, except for the requirements for those involved in property development activities. "The MPERS, which is more simpler, will replace the current Private Entities Reporting Standards (PERS), beginning Jan 1, 2016, and will make it easier for SMEs to do business overseas. "Most Malaysian companies are ready for the MPERS," he told Bernama earlier on the sidelines of the event. Meanwhile, MIA President Mohammad Faiz Azmi at the same press conference said there are about 1,500 licensed accounting firms. "The MIA has 32,000 members and it is our aim to double the number of accountants in the country. "Although we have between 4,000-5,000 students graduating annually with accounting degrees, the conversion rate for people doing the professional exam is very low. "We are focusing our efforts on this," he added. The ratio of accountants to people in Malaysia is 1,000:1, whereas in more developed countries, it is 100:1. "We are very under numbered, or underrepresented," said Faiz. Meanwhile, Tweedie touched on the importance of integrity, trust and honesty in the accounting profession in his talk. "The crux of the accounting standard is about promoting integrity, showing what is true and fair in an account," he said. He praised Malaysia's effort in catering for the agricultural standard in the palm oil industry and making convincing arguments for the IFRS amendment. --BERNAMA