DOCSLIB.ORG

Evolving to Lead ANNUAL REPORT 2015 Evolving to Lead

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Evolving to Lead ANNUAL REPORT 2015 Evolving to Lead Evolving to Lead ANNUAL REPORT 2015 Evolving To Lead This year’s cover illustration depicts MIA’s role in helping accounting professionals evolve their traditional functions—represented by the colourful numbers entering the funnel—to one that contributes meaningfully to industry and nation building, as symbolised by the light bulbs exiting the funnel. In today’s competitive environment where leadership must evolve in tandem with the ever-changing landscape of commerce and industry, MIA reinforces its commitment to help shape the accounting profession to lead a knowledge-based economy, as represented by the Evolving to Lead persons holding the funnel. ANNUAL REPORT 2015 The graphic fingerprint underscores MIA’s recognition of the contribution of the individual accounting professional in the industry’s collective effort to raise the standard of the profession. Chartered Accountants Malaysia and MIA The Chartered Accountant Malaysia or “C.A.(M)” is Working closely alongside strategic business a designation conferred by the Malaysian Institute of partners and stakeholders, MIA connects its Accountants (MIA) to a professional in accountancy, members to a wide range of continuous professional business and finance with a recognised accountancy development programmes, updates and networking qualification and relevant work experience. C.A.(M) opportunities. Presently, there are over 30,000 are the industry captains, corporate leaders and members making their strides across all industries in decision makers that play significant roles in Malaysia and around the world. nation building. MIA was established under the Accountants Act 1967 as the statutory accountancy body that regulates, develops, supports and enhances the integrity and status of the profession while upholding the public interest. MIA’s Vision MIA’s Mission To be a globally recognised and renowned institute To develop, support and monitor quality and of accountants committed to nation building. expertise consistent with global best practices of the accountancy profession in the interest of stakeholders. MIA’s Strategic Objectives MIA’s Functions • Develop and enhance the competency of Section 6 of the Accountants Act 1967 (the Act) Accountancy Professionals to meet market states that the functions of the Institute shall be: demand; • To determine the qualifications of persons for • Advance and enhance the status of members admission as members; and the accountancy profession in Malaysia; • To provide for the training and education • Support the practice of the accountancy by the Institute or any other body, of persons profession in Malaysia consistent with global practising or intending to practice the profession standards and best practices; of accountancy; • Regulate the Practice of the Accountancy • To approve the MIA Qualifying Examination(QE) Profession in Malaysia consistent with Global and to regulate and supervise the conduct of Standards; that Examination; • To regulate the practice of the profession of accountancy in Malaysia; Our Management Core Values • To promote, in any manner it thinks fit, the interest of the profession of accountancy • Integrity in Malaysia; • Mutual Trust and Respect • To render pecuniary or other assistance to • Professionalism members or their dependents as it thinks fit with • Accountability a view to protecting or promoting the welfare of • Commitment members; and • Teamwork • Generally to do such acts as it thinks fit for the purpose of achieving any of the aforesaid objects. Contents 04 Notice of the 29th Annual General Meeting Messages Sustain 06 Immediate Past President 62 Surveillance and Enforcement - Executive Summary 12 President 63 CPE Compliance 16 Chief Executive Officer 63 Practice Review 65 Financial Statements Review Report of the Council For 2014/2015 66 Ensuring Checks and Balances 22 Governance Framework in the Profession 22 Institute’s Functions - Complaints 23 Institute’s Governance and - Investigation Internal Control Statement - Disciplinary Action Taken 23 Council - Disciplinary Appeals 23 Executive Committee (EXCO) 23 Nominating Committee (NC) Committees: 23 Audit & Risk Management Committee (ARMC) Statutory and Other Committees 24 Institute’s Control Environment and Structure 72 Statutory 26 Composition of the Council/ Governance Committees 73 Technical 80 Surveillance 81 Representative of Membership Nurture 30 Membership Development and Education - Executive Summary Financial Statements for the 30 Membership Development Financial Year Ended 30 June 2015 36 Accelerating Knowledge and 86 Report of the Auditor General Competency Development 88 Statement by the Council 43 Promoting Quality and Competency 88 Statutory Declaration Through Education 89 Statement of Financial Position 47 Stakeholder Engagement 90 Statement of Profit and Loss and 47 International Relations Other Comprehensive Income 92 Statement of Cash Flows Develop 93 Notes to the Financial Statements 52 Professional Standards & Practices - Executive Summary 54 Auditing and Assurance Significant Event Highlights 116 Stakeholder Linkages 55 Ethics, Regulatory and Governance 120 Enhancing Competency and 56 Accounting Maintaining Integrity 57 Taxation 123 Corporate Social Responsibility 58 Professional Accountants in Public Practice 126 Regional Activities 59 Professional Accountants in Business 133 Media & Communications 4 Malaysian Institute of Accountants • ANNUAL REPORT 2015 Notice of the 29th Annual General Meeting Notice is hereby given that in accordance with Rule 10 of the Malaysian Institute of Accountants (Membership and Council) Rules 2001, the Twenty Ninth Annual General Meeting of the Malaysian Institute of Accountants will be held on Saturday, 19 September 2015 at 12.00 noon at the Mahkota Ballroom, Istana Hotel, 73 Jalan Raja Chulan, 50200 Kuala Lumpur. AGENDA 1. To elect three (3) members of the Council for the 6. To approve the following Resolution proposed by the ensuing year pursuant to the provisions of paragraph Council: (g) of subsection (1) of section 8 of the Accountants Ac t, 19 67. “IT IS HEREBY RESOLVED THAT the final examination of Management and Science University for The following members of Council have retired the Degree of Bachelor in Accountancy (Hons) for the pursuant to sub-paragraph (1)(b) of paragraph 2B of academic programme for which first commenced from the Second Schedule to the Accountants Act, 1967 the Academic Session November 2010 onwards, be and are not offering themselves for re-election at the recognised by the Malaysian Institute of Accountants forthcoming annual general meeting: (“Institute”) as equivalent to the final examinations specified in Part I of the First Schedule to the • Paul Chan Wan Siew Accountants Act 1967, and that the Minister of Finance • Dealanathan J. Lourdes be advised by the Institute to amend Part I of the First • Soo Hoo Khoon Yean Schedule to the Accountants Act 1967 accordingly”. Nominations have been received for the following 7. Any other business. members for election to the Council: • Brian Wong Wye Pong • Dato’ Narendra Kumar Jasani By Order of the Council • Salihin bin Abang • Sam Soh Siong Hoon 2. President’s address. 3. To consider and accept the minutes of the Twenty Eighth Annual General Meeting held on SUDIRMAN MASDUKI 27 September 2014. Registrar 4. To adopt the annual report of the Council. 26 August 2015 5. To receive the financial statements of the Institute for the year ended 30 June 2015 and the report of the auditors thereon. Messages from the Immediate Past President, President, and Chief Executive Officer “ If adopted, reforms proposed by the Committee to Strengthen the Accountancy Profession (CSAP) will transform the profession’s regulatory and operational landscape and affect the Institute’s raison d’etre significantly.” Datuk Johan Idris > IMMEDIATE PAST PRESIDENT Malaysian Institute of Accountants • ANNUAL REPORT 2015 7 Immediate Past President’s Message Dear members, As the outgoing President of MIA, it is an honour to pen Whilst this addresses the issue of upgrading accountants a brief review of the Institute’s strategy and key thrusts in midstream, we need to start early to attract high-calibre undertaken during the FY14/15 period. candidates to the profession and compete with other sectors which face the talent crunch as well. An ongoing initiative Fundamentally, the Institute sought to discharge its is to attract youth to accounting careers and professional overarching mandate of developing the accountancy qualifications by engaging with students in secondary profession to support nation-building and good governance schools and institutes of higher learning. We also worked in the public interest. together with Talent Corporation on the MIA – TALENTCORP Incentive Programme to organise mini career fairs focused Building Capacity and Competency on attracting talent to the accounting and tax sectors. A major thrust of my term as President was to build up the Broadening the net, the Institute is emphasising on diversity supply and quality of professional accountants to meet in talent to enrich the talent pool. Rather than confining market demands, hence furthering the nation’s economic the search to professional and graduate accountants, we and social aspirations of becoming a highly developed and actively seek out non-accountants and non-accounting high income nation. Currently, there are more than 31,000 students to take up professional accounting exam and join accountants registered with the Malaysian Institute of the world of accountants. Talent
Load more

Recommended publications
  • Chapter One: Introduction
    CHAPTER ONE: INTRODUCTION CHAPTER ONE: INTRODUCTION 1.1 Introduction Goodwill and the standards that regulate its measurement and reporting are commonly regarded as some of the most controversial aspects of financial reporting. One reason for this has been the diversity of practice in relation to goodwill accounting and reporting, both within and across jurisdictions. Today, goodwill has increased in importance the world over; the asset composition of companies has changed in the last few decades, and goodwill constitutes a significant proportion of assets for numerous companies (Jensen & Ruback, 1983; Chen et al., 2004). This is due to an increase in the number and value of mergers and acquisitions, which in Malaysia has doubled since 2006 (PWC-Alert, 2007). As a consequence, and because it has a greater impact on financial statements, there has been an increasing need for a more relevant approach for addressing goodwill that reflects the value of the firm. The introduction of the International Financial Reporting Standards (IFRS) in many countries around the world is one of the most significant regulatory changes in accounting history. The IFRS is aimed at increasing the quality and consistency of reporting standards. They are increasingly being viewed as a set of high-quality accounting standards that ideally would apply equally to financial reporting by public companies worldwide. The potential benefits from the use of one common set of accounting standards include increased comparability of financial statements and improved transparency that leads to more efficient investment decisions and restoring investor confidence in publicly traded companies (Hodgdon et al., 2009). 1 CHAPTER ONE: INTRODUCTION Malaysia adopted the IFRS regime in 2006, and from 1 January of that year Malaysian companies were required to implement all the Financial Reporting Standards (FRS1) issued by the Malaysian Accounting Standards Board (MASB) in the preparation and presentation of financial statements.
    [Show full text]
  • Annual Report 2018 1 TABLE of CONTENTS
    Annual Report 2018 1 TABLE OF CONTENTS Message from AFA President ............................................................................................ 2 Message from AFA Deputy President ........................................................................ 4 Message from AFA Executive Director ...................................................................... 5 ASEAN Federation of Accountants About AFA ........................................................................................................................................... 6 AFA Office Bearers 2018-2019 .............................................................................................. 8 AFA Council Members 2018 .................................................................................................. 9 AFA Primary Members .............................................................................................................. 10 AFA Associate Members .......................................................................................................... 11 Introduction of New AFA Associate Member (IAPI) ........................................... 12 Report of the AFA Council AFA Council Meetings ............................................................................................................... 14 AFA Activities .................................................................................................................................... 16 AFA Supported Activities .......................................................................................................
    [Show full text]
  • School of Accountancy Year Book 2011 - 2012 College of Business
    SCHOOL OF ACCOUNTANCY YEAR BOOK 2011 - 2012 COLLEGE OF BUSINESS CREATING LEADERS. TRANSFORMING BUSINESS SCHOOL OF ACCOUNTANCY YEAR BOOK 2011 - 2012 SCHOOL OF ACCOUNTANCY ALBANY, MANAWATÜ, WELLINGTON, DISTANCE 0800 MASSEY MASSEY.AC.NZ Contents Head of School‟s Report 1 Vision and Mission 2 2011 Research Activities 4 2007-2012 Staff Journal Publications 9 Research Funding, Awards and Nominations 28 School Highlights 34 Staff Profiles 40 Academic Programmes and Accreditations 55 University Service, Community Engagements and Professional Associations 61 Resources and Support for Students, Contact Persons and Student Advisors 64 Staff Directory 67 Campus Addresses 69 Head of School’s Report The School of Accountancy had many achievements in 2011 in teaching and research, and strengthening its relationships with the profession and community. The development and implementation of a strategy for greater use of IT in enhancing students‟ learning experience was also an exciting initiative this year. The School is progressing with its application for AACSB accounting accreditation, and this year we hosted Professor Larry Walther, Utah State University, USA, the School‟s mentor for the AACSB accounting accreditation. Professor Walther visited the Albany and Manawatu campuses during his visit and held discussions with staff. School staff can be proud of many achievements. Professor Jill Hooks was named the Albany Students‟ Association Lecturer of the Year, as well as the Best Lecturer in the College of Business. Professor Mike Bradbury was appointed as the International Association for Accounting Education and Research (IAAER) representative on the IFRS Advisory Council. Professor Fawzi Laswad was appointed deputy chair for the newly established joint Education Board of the New Zealand and Australia Institutes of Chartered Accountants.
    [Show full text]
  • Perception in Forensic Accounting Education
    13 1. Introduction Perception In Indonesian Management & Forensic accounting, which has always been part of the accounting landscape, Forensic Accounting Research Accounting Vol 6. No.2 now has moved into the spotlight following the huge corporate financial Education In July 2007 scandals in the US and other developed countries. The Association of Certified Malaysia: pp. 12 - 27 Fraud Examiners (ACFE) estimates that businesses in the US alone lost US$652 A Comparison Between billion in the year 2006 to occupational fraud (ACFE, 2006). Various surveys Accounting repeatedly report mind-boggling statistics on white-collar crime. But then, these Undergraduates And statistics, by necessity, estimates, since not all cases of fraud are detected and not Practitioners all detected cases are reported. Therefore, fraud problem may be even worse PERCEPTION IN FORENSIC ACCOUNTING than those statistics suggest (Peterson, 2004). Professionals skilled in EDUCATION IN MALAYSIA: preventing fraud and uncovering deceptive accounting practices are in strong A COMPARISON BETWEEN ACCOUNTING demand in those countries as companies respond to closer scrutiny of their financial activities by shareholders and government agencies. According to UNDERGRADUATES AND PRACTITIONERS Accounting Today, sixty percent of top 100 accounting firms in the US are expanding their forensic and fraud services (Messmer, 2004). Norzalina Mohamad Yusof To help combat fraud in the future, employer demand is increasing Dzarfan Abdul Kadir quickly for students with anti-fraud training. Therefore in the US, much has Mohamad Naimi Mohamad Nor changed in recent years in forensic accounting education. Previously, very few Faculty of Accountancy-Universiti Utara Malaysia universities offer courses in forensic accounting (Rezaee and Burton, 1997; Buckhoff and Schradder, 2000; Peterson and Reider, 2001).
    [Show full text]
  • Challenges of Accrual Accounting Implementation in Malaysian Accountant General’S Department
    International Journal of Business, Economics and Law, Vol. 8, Issue 1 (Dec.) ISSN 2289-1552 2015 CHALLENGES OF ACCRUAL ACCOUNTING IMPLEMENTATION IN MALAYSIAN ACCOUNTANT GENERAL’S DEPARTMENT Nurul Nadiah Ahmad, Santer Nurfarahinas Mazlan, Saiyidah Diyana Ahmad and Muhamad Hadi Zulfadli Pangat College of Business Management and Accounting, Universiti Tenaga Nasional, 26700, Muadzam Shah, Pahang, Malaysia. Email: [email protected] ABSTRACT Accrual accounting was fully implemented in Malaysia in the year 2015, with the aim to improve financial management procedures in the public sector. However, accrual accounting always deals with challenges that may influence the migration process and bring a huge impact on many parties. Therefore, a set of questionnaires regarding the government servants’ perception on challenges of adopting accrual accounting was distributed to various divisions in the headquarters of Accountant General’s Department (AGDs) in Putrajaya. Identified challenges are categorized by Exploratory Factor Analysis into three factors. These factors named as challenges covered on the issues of policies and rules, top management and also internal users. These results are important for the government so that it can play a more proactive role to ensure that accrual accounting in Malaysia is successfully implemented. Key words: Accrual Accounting; Challenges; AGD; Malaysia. Introduction Accrual accounting is an accounting methodology under which transactions are recognized as the underlying event occurs, regardless of the timing of the related cash receipts and payments to be made [1]. Based on this methodology, revenues are recognized when income is earned and expenses are recognized when the services have already been applied. As mentioned by the Accountant General of Malaysia, to become a high-income nation, one of the key priorities is strengthening and reforming fiscal discipline.
    [Show full text]
  • Auditor Independence in Malaysia: the Perceptions of Loan Officers and Professional Investors
    Auditor Independence in Malaysia: The Perceptions of Loan Officers and Professional Investors By Maslina Binti Ahmad A Thesis Submitted in Fulfilment of the Requirements for the Degree of Doctor of Philosophy of Cardiff University Accounting and Finance Section Cardiff Business School, Cardiff University October 2012 DECLARATION This work has not previously been accepted in substance for any degree and is not concurrently submitted in candidature for any degree. Signed …MASLINA AHMAD……………………………………………………. (candidate) Date ……30 SEPTEMBER 2012…………………… STATEMENT 1 This thesis is being submitted in partial fulfillment of the requirements for the degree of …………………………(insert MCh, Md, MPhil, PhD etc, as appropriate) Signed …… MASLINA AHMAD ……………. (candidate) Date ……30 SEPTEMBER 2012…………………… STATEMENT 2 This thesis is the result of my own independent work/investigation, except where otherwise stated. Other sources are acknowledged by footnotes giving explicit references. Signed ……… MASLINA AHMAD ………… (candidate) Date …30 SEPTEMBER 2012……………………… STATEMENT 3 I hereby give consent for my thesis, if accepted, to be available for photocopying and for inter- library loan, and for the title and summary to be made available to outside organisations. Signed …… MASLINA AHMAD ………. (candidate) Date ……30 SEPTEMBER 2012…………………… ii ABSTRACT The current study examined several issues regarding auditor independence from the perspective of an emerging market such as Malaysia. A spate of ‘mini-Enrons’ in 2007 and 2008 has raised questions of investor confidence in the financial system specifically the national stock market. These scandals involving listed companies have highlighted concerns of regulators and other interested parties relating to threats to auditor independence. Factors affecting the ability of auditors to remain independent include long audit tenure, financial dependence on a single audit client, non-audit services provided to audit clients, ex-auditor employment with an audit client and the existence of audit committees.
    [Show full text]
  • The Perceived Benefits of Accrual Accounting: Evidence from Malaysian Accountant General’S Department
    IPN Journal 3 (1): 67-82 (2013) http://jurnal.ipn.gov.my The Perceived Benefits of Accrual Accounting: Evidence from Malaysian Accountant General’s Department Nurul Nadiah Ahmad, Saiyidah Diyana Ahmad, Santer Nurfarahinas Mazlan, Muhamad Hadi Zulfadli Pangat College of Business and Accounting Universiti Tenaga Nasional Abstract Accrual accounting is targeted to be fully implemented in Malaysia by the year 2015, with the aim to improve financial management procedures in the public sector. Therefore, this study is to examine the government servants’ perception on the perceived benefits for applying accrual accounting in Malaysia. This study also investigates the significant difference between demographic factors (year of services with the government, course attended that relates to accrual accounting, education level and professional qualification) and their perceptions in relations to AGD. The 300 questionnaires regarding the government servants’ perception on four benefits of adopting accrual accounting is distributed to the various divisions in the headquarters of Accountant General’s Department (AGD) in Putrajaya. To test the objectives, the frequency analysis and ANOVA were used. The general finding shows that the respondents have positive attitude on accrual accounting. This paper also shows evidence that demographic factors influence the government servants’ perceptions, based on the significant results between enhance specific transparency with the years of service with the government and courses attended that are related to accrual accounting. On the other hand, the significant difference for professional qualification at 0.05 level with enhance unspecific transparency, enhance actions and decisions as well as avoided bad actions and decisions. These results are important for the government so that it can play a more proactive role to ensure accrual accounting in Malaysia is successfully implemented.
    [Show full text]
  • The Effect of Audit Quality on Goodwill Disclosure Among Malaysian Listed Firms Under the MFRS 136
    The International Journal of Business Management and Technology, Volume 2 Issue 3 May-June 2018 ISSN: 2581-3889 Research Article Open Access The Effect of Audit Quality on Goodwill Disclosure among Malaysian Listed Firms under the MFRS 136 Essam Rateb A. Alhjaj1, Nur Hidayah Binti Laili2 and Khairil Faizal Bin Khairi3 1 PhD candidate, Faculty of Economics and Muamalat, University Sains Islam Malaysia [USIM], Bandar Baru Nilai, 71800, Nilai, Negeri Sembilan, Malaysia 2,3Assistant Professor of Accounting, Faculty of Economics and Muamalat, University Sains Islam Malaysia [USIM] Abstract: Accounting for goodwill is again controversial as International Accounting Standard Board adopts the impairment regime in 2004. Indeed, the adoption of impairment regime regarding Goodwill in accordance with IFRS makes the annual reports of companies more credible and transparent. However, the new treatment continues to receive criticism from the academics and practitioners, because they see the impairment regime is based on the discretion of management, and there is subjectivity inherent in the application of the impairment regime besides the conceptual move toward fair-value accounting. Hence, there is non-compliance with this standard in many companies around the world. However, the problem of agency and information asymmetry, which happen between companies‟ management and shareholders, can be decreased by external audit. This paper investigates the factors that may affect companies‟ compliance with the MFRS 136 Impairment of Assets among the Malaysian listed companies. Based on a review of the prior literature, this paper proposes a conceptual framework to investigate the impact of audit quality (audit firm size, audit tenure and audit fees) on the level of goodwill disclosure compliance with the MFRS 136 among Malaysian listed companies.
    [Show full text]
  • Organisational Intention to Use Forensic Accounting Services in Detecting and Preventing Fraud:The Case of English Local Authorities
    University of Huddersfield Repository Sahdan, Mohd Organisational Intention to Use Forensic Accounting Services in Detecting and Preventing Fraud:The Case of English Local Authorities Original Citation Sahdan, Mohd (2018) Organisational Intention to Use Forensic Accounting Services in Detecting and Preventing Fraud:The Case of English Local Authorities. Doctoral thesis, University of Huddersfield. This version is available at http://eprints.hud.ac.uk/id/eprint/34814/ The University Repository is a digital collection of the research output of the University, available on Open Access. Copyright and Moral Rights for the items on this site are retained by the individual author and/or other copyright owners. Users may access full items free of charge; copies of full text items generally can be reproduced, displayed or performed and given to third parties in any format or medium for personal research or study, educational or not-for-profit purposes without prior permission or charge, provided: • The authors, title and full bibliographic details is credited in any copy; • A hyperlink and/or URL is included for the original metadata page; and • The content is not changed in any way. For more information, including our policy and submission procedure, please contact the Repository Team at: [email protected]. http://eprints.hud.ac.uk/ Organisational Intention to Use Forensic Accounting Services in Detecting and Preventing Fraud: The Case of English Local Authorities Mohd Hadafi Sahdan A Thesis Submitted to the University of Huddersfield in Partial Fulfilment of the Requirements for the Degree of Doctor of Philosophy The University of Huddersfield University of Huddersfield Business School December 2018 TABLE OF CONTENTS TABLE OF CONTENTS ..........................................................................................................
    [Show full text]
  • Chapter 6 Convergence with IFRS in Malaysia Introduction
    Chapter 6 Convergence with IFRS in Malaysia Mazni Abdullah and Marizah Minhat Introduction We discuss the issues and challenges of the movement to convergence with International Financial Reporting Standards (IFRS) in Malaysia. In reviewing some previous studies of IFRS in Malaysia, we point to directions for future research. It is widely suggested in the literature that IFRS offer several advantages to the countries that have adopted IFRS or have converged their own standards with IFRS. The advantages include increased transparency and comparability of financial statements, enhanced quality of financial reporting and increased capital market efficiency. However, the standards issued by the International Accounting Standard Board (IASB) have been largely influenced by the institutional characteristics of developed economies. Hence, converging with IFRS in a developing country like Malaysia is not without issues and challenges. In the case of Malaysia, effort to converge the local accounting standards with FRS started in 2005. In 2008, the country declared its aim to achieve full convergence with IFRS by 1 January 2012. Nevertheless, full convergence was delayed to 2018 due to several outstanding issues that will be discussed later in this chapter (The Star, 2015; Borneo Post, 2015). This indicates 1 that the IFRS convergence is hardly a straightforward journey for a developing country like Malaysia. Overview of financial reporting and disclosure regulation in Malaysia Historically, Malaysia was under British colonial influence from the 18th century until it gained independence in 1957. With this historical background, the regulation of financial reporting and disclosures in Malaysia has, to a large extent, been influenced by the UK.
    [Show full text]
  • The Relevance of Goodwill Accounting and Disclosure Practice in Vietnam
    THE RELEVANCE OF GOODWILL ACCOUNTING AND DISCLOSURE PRACTICE IN VIETNAM ABSTRACT Business acquisitions have become a common practice and goodwill values reported by firms in Vietnam have gradually increased in both absolute terms and relative to reported total assets. This study examines goodwill and goodwill reporting practices of 69 Vietnamese firms reporting goodwill in their balance sheet over a five year period, 2008 – 2012. In contrast to the general view that investors in emerging countries are less likely to use accounting numbers due to their lack of knowledge and expertise, the market association test in this study shows that goodwill and its amortization are empirically relevant for market equity valuation. However, a disclosure analysis shows that the purpose of goodwill disclosures by most groups in Hochiminh Stock Exchange are likely to meet the reporting requirements, rather than to provide useful information to financial statement users. The level of disclosure compliance is also found to be unevenly distributed, with large-cap firms mainly having meaningful and effective disclosure. Further, the amortization policies and goodwill write-off policies are vague. Lastly, the findings suggest that the mandatory reporting framework is not very effective. JEL Codes: M40, M41 and M48 Keywords: IFRS, Goodwill accounting, Financial reporting, Value relevance, Disclosure, Vietnamese Accounting standards 1 The relevance of goodwill accounting and disclosure practice in Vietnam 1. Introduction This study provides an understanding of the goodwill accounting and disclosure practices in Vietnam. Business acquisitions have become common in Vietnam over the last five years, and consequently, goodwill has progressively become an economic and institutional phenomenon in Vietnam.
    [Show full text]
  • Book Reviews Robert K
    JOURNAL OF INTERNATIONAL ACCOUNTING RESEARCH Vol. 7, No. 1 2008 pp. 97–104 Book Reviews Robert K. Larson, Editor Editor’s Note: Books for review should be sent to Robert K. Larson, University of Downloaded from http://meridian.allenpress.com/jiar/article-pdf/7/1/97/2785497/jiar_2008_7_1_97.pdf by guest on 27 September 2021 Dayton, School of Business Administration, 300 College Park, Dayton, Ohio 45469-2242. While unsolicited reviews will not be considered for publication, in- dividuals may volunteer to be reviewers by emailing Dr. Larson at [email protected]. KEITH ALFREDSON, KEN LEO, RUTH PICKER, PAUL PACTER, JENNIE RADFORD, AND VICTORIA WISE, Applying International Financial Reporting Standards,En- hanced Edition (Milton, Queensland, Australia: John Wiley & Sons Australia, 2007, xx, 1235 pp). According to its preface, Applying International Financial Reporting Standards [IFRSs] was written specifi- cally to meet the needs of accounting students and practitioners in understanding the ‘‘complexities of IFRSs and applying the stable platform of standards.’’ Specifically, it is intended to meet the needs of these readers in Australia and New Zealand. At the time of the publication of this text, some aspects of IFRS as promulgated by the International Accounting Standards Board (IASB) had been modified in these jurisdictions. This focus may cause the text to be less useful in other jurisdictions. The writing style and level of exercises and problems at the end of chapters make it appropriate for an introductory course in accounting rather than an upper level course. The six authors comprise a mix of practitioners and academics. Keith Alfredson and Ken Leo are former members of the Australian Accounting Standards Board.
    [Show full text]