NEWS

 

TITLE: Welcome Remarks by YBhg Dato’ Narendra Kumar Jasani, Vice President, Malaysian Institute of Accountants at the MPERS Conference 2018

DATE: 31/07/2018

WELCOME REMARKS BY:

YBHG DATO’ NARENDRA KUMAR JASANI

VICE PRESIDENT

MALAYSIAN INSTITUTE OF ACCOUNTANTS

AT

MPERS CONFERENCE 2018

31 JULY 2018 (TUESDAY), 9.00AM, KUALA LUMPUR

Salutations:

  • Distinguished Speakers
  • Ladies and Gentlemen

Good morning and welcome to the Malaysian Private Entities Reporting Standards (MPERS) Conference 2018.

Since it came into effect on 1 January 2016, MPERS have significantly changed the way SMEs prepare their financial statements. Currently, the MPERS is in the third year of implementation in Malaysia. Even though SMEs have successfully transitioned to MPERs, they still face post-implementation issues and impacts related to changes in the standards and regulations, specifically amendments to MPERS and the revamp of the Companies Act 2016 which has affected the preparation of their financial statements.

Today’s conference is part of MIA’s ongoing initiatives to support our members in financial reporting, especially our SMEs and SMPs in embracing MPERS. In addition, MIA has also recently published the second edition of the Illustrative MPERS Financial Statements For The Year Ended 31 Dec 2017 and MPERS FAQs. The Institute is committed to updating the Illustrative MPERS Financial Statements from time to time to reflect changes to MPERS and the laws affecting the financial accounting and reporting of private entities.

We also have a special treat for all of you, the author of the MPERS book - Professor Tan Liong Tong who is a legend in the profession - is here to talk about the book. The Illustrative MPERS Financial Statements For The Year Ended 31 Dec 2017 is a companion to MIA’s successful first publication - The Illustrative MPERS Financial Statements For The Year Ended 31 December 2016. Our second edition contains even more guidance on financial instruments, investment property and specialised activities, among other highlights, following the MASB’s issuance of Amendments to the MPERS in October 2015 effective for financial statements beginning on or after 1 January 2017.

Ladies and gentlemen,

Apart from talking about the MPERS amendments, today’s event will also focus on the revised Companies Act (CA) 2016 which has not just changed business law, but also affected the preparation of financial statements for all private entities. Today’s session will demonstrate the impact and the consequences of the CA 2016 to the financial statements, effective for the financial year / period ended on or after 31 January 2017. We will also address the establishment of the SSM Task Force and MIA’s engagements with SSM to work on various matters on CA2016 and to provide input into the FAQs issued by SSM.

On another note, which is very important, MIA forecasts that the profession will be greatly impacted by the emerging fourth industrial revolution (IR 4.0). All accountants, including those working in SMEs and SMPs as the backbone of the economy, must move in tandem with technological transformation. The IFAC – International Federation of Accountants – of which MIA is a member, advocates that accountants must know and apply the four key technologies for the profession – ABCD – A for artificial intelligence, B for blockchain, C for cybersecurity, and D for data and data analytics.

Based on a survey that MIA conducted earlier involving 1000 of our members as respondents, we know that many of you do not know where to start when it comes to transforming your business model and processes using technology. Therefore, we recently launched the MIA Digital Technology Blueprint, which focuses on five principles that you can use to guide you on your ongoing technology journey. These five principles are:

  1. Assess digital technology trends.
  2. Identify capabilities and the person within your organisation who can champion these technologies. Who should be assigned to lead this?
  3. Harness digital technologies. Put a plan in place to start adopting and start using these technologies.
  4. Funding is always the number one barrier to change. So, do map out your funding needs and identify funding options.
  5. Comply with good Governance practices including IT governance, as well as the relevant rules, laws and regulations.

The Blueprint also highlights the impact to accountants in SMPs and SMEs and depicts where we see them in 5 years. MIA created this Blueprint because we are not able to provide individual solutions to all our members, but we can help by providing these principles as a guide. The Blueprint can be download from the MIA website.

In addition, we will continue to support our members in implementing these 5 principles by providing the relevant education, training and certifications that will empower and upskill our members to manage the ABCDs.

MIA has also conducted significant training and engagements for SMPs, developed the CFO Competency Framework and finalising on the recommended Audit Software for SMPs amongst others.

On that note, I will end my remarks so that we can get started on today’s programme. I hope that by the end of the day, you will be much more confident in applying the MPERs and in complying with the relevant regulations.

Thank you.