MALAYSIAN MANAGEMENT ACCOUNTING GUIDELINES

STATEMENT OF PURPOSE AND OPERATION

The Objectives

MIA as a member of the International Federation of Accountants (IFAC) has been supporting IFAC in its effort to improve the quality of management accounting practices throughout the world. This is done through the adoption of Statements of International Management Accounting Practices developed and published by the Financial and Management Accounting Committee (FMAC), a study committee of the Council of IFAC.

MIA is of the view that it needs to be proactive in its effort to improve the quality of Malaysian's management accounting practices. As such where there are management accounting issues not addressed by the FMAC, other sources have been sought for guidance. In the same vein, any guideline that comes to MIA's attention, MIA as the national body is responsible to review it and if deemed appropriate to disseminate to members as guidance. These guidelines will take the form of Malaysian Management Accounting Guidelines (MMAGs).

Scope of the Guidelines

The MMAGs will assist management accountants, who are part of the management team in undertaking their various responsibilities which include analysing, preparing and presenting information for the purpose of planning, controlling and decision making within an organisation.

It is widely accepted that the management accountants' role extends beyond the preparation of reports for external users such as the government, other authoritative bodies, customers and shareholders.

In the process of designing, implementing and operating a system, the management accountants will be able to seek guidance from these guidelines.

These guidelines have been developed with the view that management accountants are involved in all sectors of the economy.

Authority Attaching the Guidelines

The guidelines are not mandatory for members to follow. However, since the guidelines have been developed with input from experienced practitioners from various sectors of the business and in-depth research has been undertaken into the area, they are authoritative. Thus, members are strongly advised to adhere to the guidelines, unless members in their professional judgement deem it inapplicable under the circumstances.

Adoption Procedure

The adoption procedure consists of the following stages :-

Selection of guidelines from authoritative sources for review.
Consultation with the Financial and Management Accounting Committee of MIA.
Approval by the Council of MIA for the issuance of the guidelines designated as Malaysian Management Accounting Guidelines (MMAGs).
Release of the Executive Summary in the Akauntan Nasional.
Printing of the guidelines for issuance to members after obtaining permission from the issuing body and purchase of guidelines at members' request from the issuing body.

Conclusion

The success of MIA's efforts is dependent upon the support of its work from the members. MIA believes that the acceptance and compliance with the MMAGs will enhance the standing and credibility of management accountants nationally.

Guidelines that relate to external reporting requirements will be supportive of, and compatible with Approved Accounting Standards.

Note

The price of the guidelines is based on the pricing policy of the original issuing body. If the original issuing body issues the guidelines to MIA at no cost, then MIA will similarly issue such guidelines at no cost.

However, in the case where the original issuing body charges a certain cost, interested members will place their orders with MIA. MIA will subsequently arrange with the original issuing body for shipment of the guidelines to Malaysia.