REGULATORY FRAMEWORK-STATUTORY REPORTING REQUIREMENT

1) Companies Act 1965

• Section 167 of the Act states that the management on the directors of a company is required to keep and maintain accounting and other records to enable management to prepare yearly financial statements to reflect a true and fair view of the results.
• The financial statements are to be prepared in accordance with the approved accounting standards
• The minimum disclosure requirements are set forth in the Ninth Schedule of the Act.
• Every year, a corporation is required to appoint an independent external auditor to express his or her opinion on the financial statements.

2) Accountants Act 1967

• Provides for the establishment of Malaysian Institute of Accountants (MIA)
• The objective of MIA is to regulate the accounting profession.
• The Institute issues a code- of- ethics known as By-laws (on Professional Conducts and Ethics)
• The By-laws provide fundamental principle and by laws that all members must follow

3) Financial Reporting Act 1997

• Provides guidelines for accountants, in the form of accounting standards, in the preparation of financial statments.
• A conceptual framework is designed to provide a constitution for the practice of accounting
• The Conceptual Framework for Financial Reporting was issued by MASB in Novemver 2011 to replace The Framework for the Preparation and Presentation of Financial Statement