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Ifrs

The need of this accounting standards are to provide the users with information’s on a firm’s financial position, financial performance and how is it being conducted. Besides that, a proper standard is needed in order to provide the public accountants with a guideline and a system of action that they have to follow in preparing a firm' financial statements. This will eventually prevent the deception in a firm. The accounts cannot overstate or understate their net income for an accounting period. For now, The MASB, together with the Financial Reporting Foundation (FRF), sets up the new frame work for financial reporting in Malaysia. The MASB standards are developed in accordance with the principles, objectives and concepts presented in the MASB is a proposed framework for the Presentation and Preparation of Financial Statements. In addition, MASB standards are developed in reference to the work of other national financial standard setters such as Australia, Canada, New Zealand, the United Kingdom, the United States of America and the International Accounting Standards Committee (IASC).In such way, the presentation of the Malaysia Accounting Boards Standards will be consistent with present international practice. (Accounting.2006.p16)The existing Malaysian standards are already word for word identical with IFRS.The difference lies in standards Malaysia has not adopted.(www.masb.com)

Based from the interview that we did with the upcoming accounting firms and commercial accounting firms such as Ernst & Young, PriceWaterHouse Coopers, Shalani Carpets Sdn Bhd, Maxis, Pusat Perubatan Universiti Malaya, Malaysian Merchant Marine, we were told that the standardization of the accounting standards is good for the industry as a whole, both locally and internationally.Recently,the growing in globalization of businesses and trans-national dealings had brought about significant flow of capital across the globe. Due to this fact, the Malaysian Accounting Standards Board...