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New Regulatory And Reporting Development For Islamic Finance

21 January 2015 – Today, the Malaysian Institute of Accountants (MIA) and IBFIM organised the Islamic Finance Conference 2015 with its theme Islamic Finance: The New Regulatory and Reporting Development for professionals in the financial services industry as well as accountants, auditors and senior managers in various corporations including government link corporation (GLCs).

Designed specifically to provide a continuous learning atmosphere for professional learning and development, the conference discussed pertinent issues surrounding the new regulatory and reporting standards for Islamic finance that is in compliance with the Islamic Financial Services Act 2013 (IFSA 2013).

Delivered by the most prominent speakers from Islamic finance fraternity, IBFIM announced that it has now completed realigning its current training modules including the online learning, which complement the Islamic finance learning modules it launched earlier last year. “Malaysia as the centre for Islamic finance hub has seen a strong growth due to the government’s strong initiatives among others the various recommendations in the Bank Negara Malaysia’s Financial Sector Blueprint and Securities Commission’s Capital Market Masterplan 2 “, said Dato’ Dr. Adnan Alias, Chief Executive Officer of IBFIM.

Datuk Johan Idris, President of MIA, said with the exponential growth in the Islamic finance sector, we must continuously enhance our knowledge and skills especially in the area of regulatory and legal framework. The Islamic Finance Conference 2015 is timely as it will address the impact on the IFSA 2013 in the Islamic financial institutions in Malaysia.

Prof Dato’ Mohamed Ismail, a reputable lawyer and acknowledged as one of the pioneers in Islamic banking, commented on the greater responsibilities placed on the board of directors and senior officers of Islamic banks to ensure the operations of the banks are in compliance with IFSA 2013. He shared his views on how the last 10 years have provided evidence to demonstrate the resilience of Islamic banks during financial crisis and volatile times.

Attended by more than 100 participants comprising accountants, auditors and senior managers from various local corporations, the conference concluded with a better understanding on the financial reporting issues for Islamic finance.

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“Audit committee members must take their responsibilities professionally and objectively,” says PAC Chairman

24 March 2015 – In recent years the role of audit committees has expanded to cover more risk management functions. This is due to the challenging business and risk environment from the Government regulations and enforcement to technology and digitisation.

“Audit committee members must take their responsibilities professionally and objectively as they play an important role in ensuring the integrity and quality of corporate reporting,” said Public Accounts Committee, Chairman, Datuk Nur Jazlan Mohamed during his keynote address at the Audit Committee Conference 2015 in Kuala Lumpur.

He added that “Whatever the audit committees do today, it has to be done professionally, truthfully and comprehensively as they can,”

This is the key message that was conveyed by Datuk Nur Jazlan Mohamed at the Audit Committee Conference 2015, which was held in Kuala Lumpur. The Audit Committee Conference 2015 is jointly organised by the Malaysian Institute of Accountants (MIA) and The Institute of Internal Auditors Malaysia (IIA Malaysia).

The one-day conference attracted over 250 participants comprising senior audit committee members, company directors, governance professionals, business leaders, internal and external auditors and other audit and finance professionals

With the theme Rising To New Challenges, this year’s conference focused on how audit committees are expected to navigate new areas of possibilities and risk such as cyber security and the evolving regulations and international developments.

MIA President Datuk Johan Idris echoed the same that the audit committee members are faced with many challenges in discharging their responsibilities in a landscape that is becoming increasingly regulated and complex.

“With the advancement of technology and the exponential growth of data, Audit Committee members should be aware of cyber security risk trends as well as review adapt policies to address cyber security concerns in their organisations,” he said during his speech.

IIA Malaysia President Philip Satish Rao said as a committee that provides oversight to financial reporting, risk and control, the audit committee must work in partnership with the senior management. With internal auditors as their eyes and ears, the IA functions need to understand, embrace and evolve in the manner internal audits are carried out and value is provided to Boards. IA functions need to be able to continue to also challenge the governance and risk management practices in the organisation including the manner its lines of defence are set-up. In order to provide good governance to any business entity, audit committees need to step up to new challenges to help achieve the strategic objectives of the organisation.”

At the event, delegates will be given insights into the findings of the recent ACI Global Audit Committee Survey. The survey captured views of audit committee members around the world on a range of issues from financial reporting and disclosures, audit quality, and oversight of internal and external auditors, to risk management and crisis readiness, emerging technologies, and audit committee effectiveness.

Key speakers at the conference included AirAsia Berhad’s Chair of Audit Committee V Uthaya Kumar, KPMG in Malaysia Partner Lee Min On; CyberSecurity Malaysia’s Chief Technology Officer Dr Solahuddin Shamsuddin; Ernst & Young Advisory Services Sdn Bhd’s Partner and Advisory Jason Yuen; Microsoft SEA’s Corporate Attorney for Digital Crimes Unit Jonathan Selvasegaram.

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Government Gearing Towards Accrual Accounting

30/03/2015

(L- R) Tan Sri Dato’ Setia Haji Ambrin Buang, Prof. Dr. S. Susela Devi, Dean Faculty of Business & Information Technology, UNITAR International University, Managing Director, Zinkin Ettinger Sdn Bhd Datuk John Zinkin and Datuk Nur Jazlan Mohamed.

In an effort to enable the public sector to improve its financial management, the Government is moving towards accrual-based accounting. This would enhance the accountability and transparency in its financial management, improve decision making and, gain trust from its stakeholders. Currently, the Federal Government is applying modified cash basis accounting.

In accrual-based accounting, financial events are recognised when they occur regardless of when cash transactions occur. This means financial events are recognised at the time in which the transaction occurs rather than when payment is made (or received).

According to the Auditor General of Malaysia Tan Sri Dato’ Setia Haji Ambrin Buang there are several benefits of adopting accrual accounting in the public sector, for example, it enhances transparency and accountability especially on information relating to Government assets and liabilities. As a result, decision makers would be able to make informed decisions that are instrumental for our economic growth.

“More effective management of national credit and national debts is another benefit for adopting accrual accounting,” he explained, during the Government Accrual Accounting Conference 2015 in Kuala Lumpur.

Agreeing to the statement made by Auditor General of Malaysia Tan Sri Dato’ Setia Haji Ambrin Buang is Public Accounts Committee’s Chairman Datuk Nur Jazlan Mohamed.

“We can study on how some countries have adopted accrual accounting and, adopt the best practices that suit the Malaysian landscape,” he said.

According to the Malaysian Institute of Accountants, Registrar, Sudirman Masduki the adoption of accrual-based accounting will put the practices of Malaysian public sector finance in line with developed countries, but he cautioned that the move is not without its challenges.

“The respective employees in the public sector, for example, that deal with consolidated funds, statements of accounts and the various accounting procedures will have to be trained to ensure that accrual-based accounting will be successfully adopted,” he said during his welcome address at the Government Accrual Accounting Conference 2015 in Kuala Lumpur.

With this in mind, MIA, The Malaysian Institute of Certified Public Accountants (MICPA) and The Chartered Institute of Public Finance and Accountancy (CIPFA) UK have signed a Memorandum of Understanding (MoU) at the conference today. The three parties are committed to work together to strengthen public financial management through the enhancement of skills and identifying areas of capacity building in the accountancy profession and the public sector in Malaysia.

The Government Accrual Accounting Conference 2015 is a two-day conference, which attracted over 100 participants comprising accountants and auditors in the public sector and, head of Government departments and agencies. The conference was also attended by head of Government training agencies, private sector accountants who have dealings with the public sector and agencies, auditors who are assigned to audit public sector and agencies, and academicians.