by MIA Digital Economy, Reporting and Risk (DERR) Team
The MIA Digital Economy and Reporting Insights provides quarterly updates on the areas of digital economy, tax and reporting. The Insight highlights contents and initiatives that are of high value to members.
Leading the Digital Transformation of the Accountancy Profession in Malaysia
In March 2022, MIA organised MIA Digital Month 2022 (MDM 2022) which is a virtual, month long convention of digitalisation of the accounting profession in Malaysia. It aims to drive MIA’s aspirations in supporting digital technology adoption by the accounting profession in Malaysia. MDM 2022 consisted of four complimentary webinars and ended with MIA’s Annual AccTech Conference.
MDM 2022 was kicked off with a webinar on Leading the Digital Transformation of the Accounting Profession in Malaysia. Featuring the Chair, Lim Fen Nee and members of the MIA Digital Technology Implementation Committee (DTIC), Prof Dr David Asirvatham and Steven Chong Hou Nian, the webinar covered the Institute’s various digital initiatives to facilitate the accounting profession in its digital transformation journey. To gain insights from the session, click here.
MDM 2022 continued with sharing on digitalisation grants where participants were enlightened on the application process of both Smart Automation Grant and SME Digitalisation Grant and how the grants have been used in digital transformation journey. The session was followed by a panel discussion moderated by a DTIC member, Bryan Chung, covering many aspects of the grants including the importance of selecting the appropriate software in digitalisation and the ability to measure the quantitative and qualitative benefits of such selection. For more information on the grants and the issues and matters discussed at the session, click here.
Findings of Technology Adoption by the Accountancy Profession Survey 2022
The Survey reveals that the accounting profession is progressing well with their technology adoption where 97% of respondents indicated that they are at various stages of adoption with 72% of respondents having the status of adoption of 30% or more. The survey was conducted to ascertain the progress since the last survey in 2019, to gain insights on the impact of the pandemic on digital adoption of the accounting profession and to help MIA in identifying further initiatives to move the profession forward. For more survey findings, the article can be accessed here.
In June 2022, MIA submitted Joint Memorandum for 2023 Budget Consultation to the Ministry of Finance which comprises 77 proposals. In the same month, MIA also engaged with the Ministry of Trade and Industry (MITI) in developing appropriate tax incentives to promote exports of Malaysian professional services under Budget 2023. MIA looks forward for the proposals to be taken up in 2023 Budget.
In May 2022, MIA submitted a comment letter on the International Public Sector Accounting Standards Board (IPSASB) on Exposure Draft 81 Conceptual Framework Update: Chapter 3, Qualitative Characteristics and Chapter 5, Elements in Financial Statements. The update on Chapter 3 involves the inclusion of new guidance that explains the role of prudence and the guidance on materiality that better serves the users of financial statements. While for Chapter 5, IPSASB is proposing minor changes to definitions of an asset and a liability and the addition of new guidance on a transfer of resources, unit of account and binding arrangements that are equally unperformed. The comment letter can be viewed here.
Common Issues on Consolidation
Since the Malaysian Private Entities Reporting Standard (MPERS) became effective in 2015, the Institute received various accounting queries on consolidation through the technical queries facility. As part of our effort to assist members on this topic, an article covering common questions on consolidation under the MPERS framework and the suggested guidance for reference has been issued which can be accessed here.
Sustainability Reporting in the Public Sector
Sustainability reporting is becoming common practice in the private sector where there has been notable progress towards the development of a global baseline for sustainability reporting in the private sector including the formation of the International Sustainability Standards Board (ISSB) to deliver a comprehensive global baseline of sustainability disclosure standards that will assist in providing information about company’s sustainability-related risks and opportunities that can help with their decision making.
However, sustainability reporting in the public sector is still at the infancy stage. For more insights on the developments driving sustainability reporting in the public sector, the role being played by the IPSASB and the role of public sector accountants in sustainability, please click here.