A new proposal is currently being considered whereby Chief Financial Officers (CFOs) in Malaysia's public interest entities will need to register with a proposed new regulatory body to further improve the sector's professionalism.
Malaysian Institute of Accountants (MIA) President Datuk Mohammad Faiz Azmi said the new regulatory body (NRB), which is proposed to be set up by the Committee to Strengthen the Accountancy Profession (CSAP), will help monitor the CFOs and recommend appropriate improvements as and when needed.
The establishment of the NRB is part of the 15 recommendations in the report on Strengthening of the Accountancy Profession in Malaysia prepared by the CSAP.
He said the move is also in line with current implementation of International Financial Reporting Standards in the country, which requires consistent application of complex global accounting standards.
"The proposal to register CFOs is to understand the degree of experience and training that person has to be able to do that job, and it is a fundamental requirement that the person signing (financial statements) must have the right knowledge of accounting standards.
"We realise that Malaysia is a bit late in making CFOs accountable, as they have in other countries in the region where they have already taken a much further step than us. It is time," he told Bernama.
On the current situation in Malaysia, Mohammad Faiz said although Bank Negara Malaysia (BNM) has strict criteria for CFOs in the banking industry, there are no such requirements for the non-banking sector.
He said it is equally crucial for CFOs in listed companies to be accountable for the financial statements signed by them which could enable investors and other users of financial statements to compare the financial performance on a like-for-like basis with their international peers.
Mohammad Faiz said the regulators in the country, including BNM, Companies Commission of Malaysia, Accountant General's Department and Securities Commission Malaysia, would run the NRB, which has yet to have a name.
The two main roles for NRB are to act as an enforcement body for professional conduct as well as the regulator for policy-making of the accounting profession in Malaysia, he said.
The implementation committee of the report will take all 15 recommendations and draft them into an Act. The proposal to make the registration for CFOs mandatory will be included in the draft Act, which will be submitted by the CSAP Implementation Committee to the Securities Commission by year-end for approval.
"So by next year, we will start talking about getting the Act to Parliament," he said. - BERNAMA
Bernama
Mon Dec 26 2016
The new regulatory body (NRB), which is proposed to be set up by the Committee to Strengthen the Accountancy Profession (CSAP), will help monitor the CFOs and recommend appropriate improvements as and when needed. - Filepic
Former special forces commander Prabowo to take up Indonesian presidency
Indonesia's Prabowo Subianto will take over as president of the world's third-largest democracy after sweeping the country's election with policies like free meals for school children
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Trump says he would impose tariffs on China if China went into Taiwan
Republican presidential candidate Donald Trump said he would impose additional tariffs on China if China were to "go into Taiwan,"
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.