ACC2233 - Development of Accounting in Malaysia

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Development of Accounting in Malaysia 

• Prior to 1957 – Companies Ordinance (and amendments) of 1940, 1946, 1956. 
• 1958 – Malaysian Association of Certifies Public Accountants (MACPA) was formed. 
• 1965 – Establishment of Companies Act, 1965. Companies ordinance were then repealed. Contain Ninth Schedule (disclosure requirements). 
• 1967 – The Malaysian Institute of Accountants (MIA) was established under the Accountant Act, 1967. Remained inactive for 20 years
• 1968 – MACPA issued first accounting guidance which dealt with specimen company accounts. 
• 1978 – MACPA was admitted as a member of International Accounting Standards Committee (IASC) and began adopting IAS. 
• 1984 – MACPA issued the first Malaysian Accounting Standard. 
• 1985 – Companies Act 1965 was amended. New Ninth Schedule with more comprehensive disclosure requirements that includes the preparation of statement of source and application of funds.
• 1987 – Operation of MIA were activated. MIA began issuing accounting standards. 
• 1993 – Securities Commission were established. Public listed companies are required to show full disclosure requirements as required by SC’s. 
• 1997 – Financial Reporting Foundation (FRF) and Malaysian Accounting Standard Board (MASB) was established under the Financial Reporting Act, 1997.

The Development of Professional Bodies in Malaysia - MACPA 

• Was established in 1958. 
• Function is to regulate the practice of its members who carry the title Certified Public Accountant (CPA). 
• It also act as the institution for training and examinations leading to professional qualification. 
• 1968 – issue it first accounting guidance which dealt with a specimen company accounts. 
• 1978 – admitted as a member of IASC and start adopting IAS. 
• 1984 – MACPA issued first MAS.

Malaysian Institute of Accountants (MIA ) 

• Established in 1967 under Accountant Act, 1967. 
• It is a public sector accounting body, but its regulations cover the whole accounting practices in Malaysia. 
• After its establishment, it remained inactive and concentrated mainly on the registration of accountants in Malaysia 
• In 1987, the operation of MIA were activated to be those of a national accounting body. 
• 1987 – began to issue accounting standards, technical bulletins and pronouncement to guides its members.

Taken from UiTM slides FAR350