The MIA Digital Economy and Reporting Insights provides quarterly updates on the areas of digital economy, tax and reporting. The Insights highlights contents and initiatives that are of high value to members.
Future-Proofing Finance Functions
Finance functions today are rapidly transforming to meet the complex needs of business in a high-risk landscape. MIA published this video which focuses on how accountants are evolving from their bedrock of financial reporting and compliance to embrace enterprise value creation for long-term organisational sustainability.
Technology trends have a tremendous impact on the role of accountants as they evolve into enablers and leaders of enterprise value creation and long-term organisational sustainability. Another video has been published which highlights the far-reaching impact of 3 technology trends – cybersecurity, big data & analytics and robotic process automation – on the accounting profession, based on the findings of the Technology Adoption in Accountancy Profession in Malaysia Survey 2022.
Proposed Regulatory Framework on Technology Risk Management
MIA submitted comments on the proposed regulatory framework on technology risk management published by the Securities Commission Malaysia (SC) in September 2022.
The proposal sets out the key highlights of the proposed regulatory framework and seeks feedback on areas such as governance and compliance process, management of technology risks, cybersecurity, data and third-party service provider, as well as the principles relating to the adoption of artificial intelligence (AI) and machine learning (ML). The proposed regulatory framework aims to further improve capital market entities’ ability and effectiveness in detecting and addressing an increasing range of technology risks due to the prevalent use of technology, emergence of new technologies and the growing sophistication of cyber threats.
Proposals on tax incentives for export of professional services
In July 2022, the Institute jointly submitted proposals pertaining to the export of professional services to the Ministry of International Trade and Industry for 2023 Budget. The proposed tax incentives include establishment of a regional export services hub and incorporation of global business services into the Qualifying Services List.
Issues Arising from Dispute Resolution Proceeding
Following the joint submission by the Institute on issues arising from dispute resolution proceeding (DRP), the Institute has engaged the Dispute Resolution Department (DRD) of the Inland Revenue Board (IRB) in July 2022.
The DRD has provided suggestions to ensure that appeals are navigated more effectively during the DRP and taxpayers are advised to:
Retirement Benefit Plans in the Public Sector
The International Public Sector Accounting Standards Board (IPSASB) issued a proposal on the accounting, presentation, and disclosure requirements for retirement benefit plans through its Exposure Draft 82 Retirement Benefit Plans. The proposal will increase transparency and accountability of public sector entities regarding obligations owed to employees and other eligible participants who are members of the retirement benefit plan. Our comments on the proposal are available here.
Public Sector Sustainability Reporting
In September 2022, MIA submitted a comment letter to the IPSASB on its Consultation Paper Advancing Public Sector Sustainability Reporting. The Consultation Paper sought to evaluate the demand from stakeholders for sustainability reporting guidance, as well as the degree of support for the IPSASB’s involvement in the process, the priority areas for guidance, and how this might be approached. Our comments can be accessed here. You can also read an article titled ‘Sustainability Reporting in the Public Sector: The Way Forward’ here.