Consensus


Authority of FRSIC Consensus

  1. FRSIC Consensus are guidance issued by MIA and should be regarded best practice. It should be read in conjunction with accounting standards.

  2. The Council of MIA expects its members who assume responsibilities in respect of financial statements to observe FRSIC Consensus until replaced by accounting standards or otherwise withdrawn. The Council have agreed that:

    1. where this responsibility is evidenced by the association of members' names with such financial statements in the capacity of directors or other officers other than auditors, the onus will be on them to ensure that the existence and purpose of FRSIC Consensus are fully understood by fellow directors and other officers. Members should also use their best endeavours to ensure that FRSIC Consensus are observed and that any significant departures found to be necessary are adequately disclosed and explained in the financial statements.

    2. where members act as auditors or reporting accountants, they should be in a position to justify significant departures to the extent that their concurrence with the departures is stated or implied. They are not, however, required to refer in their report to departures with which they concur, provided that adequate disclosure has been made in the notes to the financial statements.

  3. MIA, through appropriate committees, may enquire into apparent failures by its members to observe FRSIC consensus or to ensure adequate disclosure of significant departures.

Scope and Application of FRSIC Consensus

  1. FRSIC Consensus need not be applied to immaterial items. Nothing in the FRSIC Consensus is to be construed as amending or overriding the accounting standards or other statements adopted or issued by the MASB or other relevant laws.

  2. FRSIC Consensus should be guided by the basis of consensus. FRSIC Consensus are intended to be as concise as the nature of a particular topic allows rather than detailed rules dealing with every conceivable circumstance.

  3. Where FRSIC Consensus prescribes information to be contained in financial statements, such requirements do not override exemptions from disclosure given by law to, and utilised by, certain types of entity.

Compliance with FRSIC Consensus

  1. FRSIC Consensus are guidance issued by MIA and should be regarded best practice. It should be read in conjunction with accounting standards. FRSIC Consensus consequently may be taken into consideration by the Financial Statement Review Committee (FSRC) of MIA in deciding whether financial statements call for review.

  2. The FSRC has procedures for receiving and investigating complaints regarding the annual accounts of companies in respect of apparent departures from the accounting requirements of the companies' legislation including the requirement to give a true and fair view.

  3. Members of MIA are expected to observe compliance to the consensus issued. In exceptional circumstances where departure is necessary, members should be prepared to justify the departure.

Dissemination and Implementation

  1. The FRSIC Consensus are made publicly available by the MIA for the guidance of users, preparers and auditors of financial information. They include a discussion of the matter without identifying individual's views, the accounting issues identified, reference sources, and a summary of the FRSIC's deliberations, and clearly indicate what conclusion has been reached.

  2. A FRSIC Consensus takes effect 3 months from the date of its issuance, and is thereafter to be regarded as accepted practice in the area in question. Accordingly, all reporting entities will be expected to conform to it, if necessary by changing previously adopted accounting policies, unless the consensus explicitly states otherwise.