APPROVED MANAGEMENT ACCOUNTING STATEMENTS

APPROVED MANAGEMENT ACCOUNTING STATEMENTS (AMAS)

This preface has been approved by the Council of the Malaysian Institute of Accountants (MIA) for publication. It is issued to facilitate understanding of the applicability and use of the statements on management accounting issued by The Professional Accountants in Business (PAIB) Committee (formerly known as Financial and Management Accounting Committee (FMAC)), a standing committee of the Board of The International Federation of Accountants (IFAC).

The PAIB Committee issues two kinds of statements :

(i)	Statements on International Management Accounting Practices - which represent a distillation of experiences from the practice of management accounting and they are intended to increase the level of competence and involvement of management accountants; and
(ii)	Statements on International Management Accounting Studies which provide in-depth materials on specific management accounting areas of importance to management accountants which are intended to expand the horizon of management accounting and for use as appropriate.

STATEMENTS ON INTERNATIONAL MANAGEMENT ACCOUNTING

These statements are developed and published by the PAIB Committee, a standing committee of the Council of IFAC. The MIA is a member of IFAC and by virtue of that membership it has agreed to support the objectives of IFAC as set out in its Constitution. The MIA in conjunction with other members of IFAC believe that the adoption of these statements will help to improve the quality of management accounting practices throughout the world. The attention of members is drawn to paragraph 2 of IFAC’s Constitution. As member of IFAC, the MIA has undertaken on behalf of its members the obligation set out in paragraph 2 of IFAC’s Constitution which is the development and enhancement of a coordinated world-wide accountancy profession with harmonized standards.

A Statement on International Management Accounting Practices approved by the MIA may include an explanatory Foreword. The Foreword will draw members’ attention to any matters which conflict with local requirements and procedures and will provide appropriate guidance. In addition, the Foreword may include explanations of Malaysian circumstances which are not covered by the Statement or which affect the applicability of the Statements or part thereof.

As Statements on International Management Accounting Studies may be on topics of limited interest, Council will only publish them in the Institute’s journal.

APPLICABILITY

The Council has determined that Approved Management Accounting Statements comprise :

(a) Statements on International Management Accounting Practices issued by the PAIB Committee and approved by the MIA.

(b) Statements on International Management Accounting Studies issued by the PAIB Committee and approved by the MIA.

It is believed that the issuance of the above statements will help to improve the quality of management accounting practices. They are not prescriptive in nature as it is not possible to do so for the management accounting process. The statements are for guidance only.