Question

Explain the differences between the Malaysian Accounting Standard Boards (MASB) and the Malaysian Institute of Accountant (MIA).

Answer 1

The MIA is an agency under the ministry of Finance and reports directly to accountant general office.The accountancy professional in malaysia are regulated By MIA(Malaysian institute of accountants) through the powers conferred by accountant act 1967.MIA sets the by laws and auditing standards for the accountancy profession in malaysia.which are in line with the standards issued by IFAC(International Federation of Accountants) and IAASB( International Auding & assurance standard board.)Accounting firms in Malaysia have to be registered with MIA and menbers of MIA who wish to do public practice should possess practicising certificate issued by MIA.

MASB( Malaysian accounting standard board) was established as independent authority which issues accounting standards by the virtue of the power conferred by Financial reporting act 1997.The financial reporting act also establish financial reporting foundation(FRF) to oversee the MASB performance and financial management. TheMASB together with FRF, make up frameworks for financial reporting in malaysia. The frame work consist of independent Standard setting structure with representation from all relevant parties in standard setting process, including preparers,users, regulators and accounting profession.Earlier the accounting Standards were prepared by MIA but after establishment of MASB ,its the responsibility of MASB to issue accounting Standard.MIA also plays important role in setting accounting standard in malaysia.