Malaysia
The Malaysian Accounting Standards Board (MASB) has expressed its commitment to converge the Financial Reporting Standards (FRSs) with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB). According to a June 2007 MASB press release, prior to 2005, the policy of the Malaysian accounting standard-setters had been to adopt international standards, albeit adding additional explanatory guidance and examples in order to reflect local circumstances and cover topics not addressed in the international standards. In October 2005, the MASB issued in batches 21 FRSs, which had been revised in order to incorporate the revisions made by the IASB to IFRSs. In January 2006, FRSs were finalized for application in relation to financial statements that are required to be prepared or lodged under any law administered by the Securities Commission, Central Bank of Malaysia, or the Registrar of Companies for annual periods beginning on or after January 1, 2006. At the same time, it was announced that private entities may elect to use the former MASB standards which, according to a 2006 PricewaterhouseCoopers publication, differ from IFRSs. In line with its convergence policy, in June 2007, the MASB issued another batch of 10 revised FRSs. Finally, on August 1, 2008, the MASB and the Financial Reporting Foundation announced the plan to fully converge Malaysian accounting requirements for entities other than private entities with IFRSs by January 1, 2012. Although, as of 2008, most FRSs are identical to their international counterparts, several IFRSs, as well as some amendments to IFRSs and IFRIC interpretations, have not been adopted in Malaysia
According to the 2007 edition of the Malaysian Institute of Accountants' (MIA) Handbook, the MIA, as a member of the International Federation of Accountants (IFAC), is committed to converging its national standards with International Standards on Auditing promulgated by the IFAC. The Preface to the Handbook further notes that Malaysia has decided to apply ISAs as the basis for Malaysian Approved Standards on Auditing (MASA). In the event that an ISA contains guidance which is significantly different from Malaysian law or practice, the explanatory foreword to an approved ISA will provide guidance on such differences. The financial statements of all companies incorporated under the Companies Act of 1965 are required to be audited in accordance with MASA issued by the joint working group of the Malaysian Institute of Certified Public Accountants and the MIA. The Approved Standards on Auditing that are recognized by the Council of the MIA comprise: (1) ISAs, designated as AI; and (2) the Malaysian Standards on Auditing, designated as AM issued by the MIA that cover topics not dealt with in ISAs. Further recommendations concerning guidelines on auditing released by the Council serve as opinions on best current practice and hence form part of the Generally Accepted Auditing Principles in Malaysia.
