Malaysia: Asian-Oceanian Standard-Setters Group
Malaysian Accounting Standards Board (MASB) and 23 Standard-Setters in the Asian-Oceanian Region, in the presence of the International Accounting Standards Board (IASB) today officially launched the inaugural meeting of the Asian-Oceanian Standard-Setters Group (AOSSG) in Kuala Lumpur.
The meeting not only marks the formation of the first grouping of accounting standard-setters in the Asian-Oceanian region, it is said to also play an important role in the process of convergence with International Financial Reporting Standards (IFRS) for the region.
The opening ceremony was officiated by Y.B. Dato’ Seri Ahmad Husni Mohamad Hanadzlah, Finance Minister II of the Malaysian Finance Ministry. Also present were Datuk Ali Abdul Kadir, Chairman of Financial Reporting Foundation (FRF), Encik Mohammad Faiz Azmi, Chairman of MASB, Dato’ Zainal Abidin Putih, the Chairman of MASB AOSSG Committee and Sir David Tweedie, Chairman of IASB.
The objective of this first meeting in November is to establish and agree on a constitution for the AOSSG and to discuss and to provide input on several of the most recent draft proposals issued by the IASB. The discussions will include views on the fair value measurement, the presentation of financial statements, revenue recognition and IAS 39.
MASB Chairman, Mohammad Faiz Azmi, said:
We welcome this move to create a regional forum to help facilitate the convergence with IFRS. Converging to a single global standard will benefit the entire business community in Malaysia as well as the whole Asian-Oceanian region. It will help us be competitive in an increasingly global market.
On 1 August 2008, MASB announced the plan to converge with IFRS by 1 January 2012. Following that announcement MASB had adopted most of the key IFRS’s and, apart from some limited amendments or revisions, the only two key ones remaining to be adopted now are IAS 39 Financial Instruments: Recognition and Measurement and IAS 41 Agriculture. The proposed adoption date for IAS 39 is 1 January 2010, and the formal adoption date for IAS 41 will be announced later.
En Faiz elaborated:
With our participation in AOSSG, we hope to enable Malaysian corporate reporting stakeholders have an influence on the direction and standards issued by IASB. Also, such a forum will enable us to raise common issues and perspectives of developing countries like ours.
In closing, En Faiz said:
[T]he move to be fully converged with the international accounting standards will encourage companies operating in Malaysia to practice better transparency and business ethics.
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