The MIA Sustainability, Digital Economy and Reporting Insights provides quarterly updates on the areas of sustainability, digital economy, tax, reporting and research. The Insights highlights contents and initiatives that are of high value to MIA members.
Sustainability Blueprint for the Accountancy Profession
The MIA Sustainability Blueprint for the Accountancy Profession (the Blueprint) was successfully launched during the MIA International Accountants Conference 2024 on 11 June 2024 by YB Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II.
The Blueprint is intended to empower accountants to align their practices with sustainability imperatives to achieve the following objectives:
- Establishing aspirations for accountants in Malaysia with regards to sustainability.
- Analysing key challenges facing the accountancy profession in Malaysia based on the domestic and global sustainability landscape.
- Enabling accountants in the sustainability space.
The Blueprint outlines four overarching aspirations together with a set of guiding principles with three levels of maturity: Foundation, Intermediate and Advanced to facilitate accountants in navigating their sustainability journey.
To learn more about the Blueprint, please visit our Sustainability page.
MIA Digital Month 2024
In driving MIA’s aspirations in supporting digital technology adoption by the accountancy profession in Malaysia, the MIA Digital Month 2024 (MDM 2024) made its return for the fourth consecutive year in April and May this year with the theme ‘Digital Empowerment: Innovation for Sustainable Growth and Future Leadership’.
MDM 2024 showcased a weekly complimentary webinar for four weeks from 18 April to 9 May 2024 and concluded with the grand finale of the reinvented MIA Accounting & Financial Technology Showcase 2024 (MIA AFT 2024), formerly known as the AccTech Conference, on 15 May 2024. Over 900 MIA members, academicians, and accounting students participated in the complimentary webinars during the digital month. These sessions covered a broad spectrum of topics, including IT audit, sustainable technology, business model innovation in the digital age, cybersecurity, digital transformation success stories, and GenAI in the profession where distinguished speakers from diverse backgrounds imparted invaluable insights, enriching each session with their expertise and unique perspectives.
Keep an eye out for upcoming articles featuring insights from the webinar sessions of MDM 2024!
Digital Technology Adoption Awards (DTAA) Presentation Dinner
MIA recently held its first-ever Digital Technology Adoption Awards (DTAA) to celebrate and encourage excellence in digital transformation within the accountancy profession. First launched in 2023, DTAA was introduced to promote digital technology adoption across the accountancy profession and recognise remarkable achievements of technology application by the accountancy profession in commerce and industry, public practice, and public sector.
Following the evaluation by the esteemed adjudication committees, the DTAA Presentation Dinner took place on 15 May 2024 at the Malaysia International Trade and Exhibition Centre (MITEC). Graced by the esteemed presence of Yang Berhormat Puan Lim Hui Ying, Deputy Minister of Finance, the presentation dinner witnessed fourteen winners being recognised for their remarkable digital technology adoption.
The Institute extended its warmest congratulations to the winners and expressed hope that the success stories from the DTAA will inspire ongoing and future digital transformation, ensuring the future relevance of the accountancy profession.
Click here to read the official media release on the DTAA Presentation Dinner.
Empowering SMPs: Journey through Digital Transformation
In its unwavering effort to facilitate digital adoption among Small and Medium Practitioners (SMP), MIA hosted an event centered on digital transformation on 28 June 2024 at its office in Bangsar South.
Over 25 practitioners participated in the close session, which featured insights from the MIA Digital Technology Adoption Awards (DTAA) Top Excellence Winners in the SMPs Category regarding their journeys and insights in navigating the digital landscape. Challenges, best practices as well as practical strategies to propel firms towards success in the digital age were shared by Mr Ng Wing Siang (NC Accounting Services Sdn Bhd), Mr Yap Lau Loong (CCL & Partners PLT) and Mr Zen Chow (YYC GST Consultants Sdn Bhd) during the sharing and dialogue session moderated by Mr Steven Chong, Member of the MIA Digital Technology Implementation Committee.
Participants benefitted from the chance to network and gained valuable insights to advance in their digital transformation journey at the event.
Taxation Advocacy
Service tax on maintenance service
In May 2024, MIA submitted a comment letter to the Ministry of Finance (MoF) pertaining to proposals on issues arising from the imposition of service tax on maintenance services and other service tax related issues. Among issues covered are applicability of service tax on the provision of maintenance or repair services in connection with land, goods or matters outside Malaysia as well as service tax exemptions for maintenance or repair services.
Tax agent accreditation
MIA has also submitted feedback on the proposed tax agent accreditation course following the engagement session that it had with the MoF in April 2024 where it emphasised the advantages of conducting tax agent licensing through interviews. MIA has also proposed that the MIA Qualification Exam be recognised for the purpose of tax agent applications under Section 153(3) of the Income Tax Act 1967.
Budget proposals on capital market
In June 2024, MIA proposed enhancements to the annual national budget to support the growth of the capital market and economy to the Securities Commission Malaysia (SC). Corporate reporting is crucial for investors and stakeholders, providing high-quality information about company performance, risks, opportunities and long-term prospects including sustainability risks and opportunities. The chief financial officers (CFOs) and their finance functions as well as auditors play a pivotal role in such reporting.
MIA emphasised that capacity building is critical to ensure accountancy professionals are competent in relevant areas which include MFRSs, <IR>, sustainability (including reporting of ESG and sustainability), digitalisation, capital market requirements as well as other areas as identified by the MIA competency frameworks for CFOs and finance functions.
Public Sector Advocacy
In its support of accrual accounting adoption and implementation in Malaysia, MIA submitted comments on the following consultation documents of the International Public Sector Accounting Standards Board (IPSASB):
Exposure Draft (ED) | Descriptions | Comment letters |
---|---|---|
ED 86, Exploration for and Evaluation of Mineral Resources | ED 86 proposes a standard on accounting for the costs incurred in the exploration and evaluation of mineral resources, based on the selection of an accounting policy specifying which expenditure should be recognised as exploration and evaluation assets. ED 86 is aligned with the private sector requirements in IFRS 6, Exploration for and Evaluation of Mineral Resources with limited changes for the public sector context. | Comment letter submission on ED 86 |
ED 87, Stripping Costs in the Production Phase of a Surface Mine (Amendments to IPSAS 12) | ED 87 proposes adding an authoritative appendix to IPSAS 12, Inventories. The proposed guidance clarifies when to capitalise or expense costs incurred to remove waste material in surface mining operations. ED 87 is aligned with the guidance in IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine, with limited changes for the public sector context. | Comment letter submission on ED 87 |
ED 88, Arrangements Conveying Rights over Assets | The proposed amendments to IPSAS 47, Revenue are consistent with the strongly supported principles exposed in ED 84, Concessionary Leases and Right-of-Use Assets In-kind (Amendments to IPSAS 43 and IPSAS 23), published in January 2023. Additionally, ED 88 proposes illustrative examples to accompany IPSAS 47 and IPSAS 48, Transfer Expenses on other types of arrangements conveying rights over assets that are common in the public sector. | Comment letter submission on ED 88 |
ED 89, Amendments to Consider IFRIC Interpretations | The ED proposes guidance, based on IFRIC Interpretations issued by the IFRS Interpretations Committee, to clarify how public sector entities should apply existing IPSAS principles to specific matters. | Comment letter submission on ED 89 |
Global Advancements in Public Sector Sustainability Reporting
In the Sovereign Climate and Nature Reporting: Proposal for a Risks and Opportunities Disclosure Framework published by the World Bank in 2022, the World Bank invited IPSASB to lead a consultative process to gain support for developing global public sector specific sustainability reporting guidance. Since then, there have been various developments in the public sector sustainability reporting landscape which can be read about here.
Complimentary Webinar: Navigating Public Financial Management for Sustainable Future
On 26 April 2024, MIA delved into crucial insights on significant implications of the newly passed Public Finance and Fiscal Responsibility Act on the accountancy profession in a complimentary webinar titled Navigating Public Financial Management for Sustainable Future. The panel discussion was moderated by Encik Syarizal Rahim, Member of the MIA Public Sector Accounting Committee and featured Puan Nor Yati Ahmad from the Accountant General’s Department of Malaysia, Mr Ting Choo Wai, Partner of PwC Malaysia and Professor Dr. Geoffrey Williams, Economist and Director of Williams Business Consultancy Sdn Bhd.