Deepavali Wishes to All Our Hindu Readers

MIA’s main role is to ensure“ that our members perform the roles expected of them and that public interest is always upheld.”

MIA President, Nik Mohd Hasyudeen Yusoff Deepavali Wishes to all our Hindu readers Ⅲ Member Audit What we can do about Climate Change Bureau of Circulations (Malaysia) Ⅲ NAfMA for Small and Medium Enterprises A Monthly Publication of the Malaysian Institute of Accountants CONTENTS November 2007

Cover Pages 9-13 Setting the Pace, Moving Forward Business & Accounting

Credibility is Key for the Profession 17 Does Trust Matter for Control? Ask a Formula 1 Grand Prix driver what it feels like In responding to globalisation and to be sitting in the driver’s seat and chances are he’ll competition, organisations form tell you of the immense responsibility he bears to secure strategic alliances, networked or success for his team. It is no different for anyone virtual organisations or they outsource. Emsley (2006) argues for the need to rely more on trust elected to the hot seat that is the presidency of the than control for managing these new forms of organisations. At the Malaysian Institute of Accountants (MIA). The newest intra-organisational level, mutual trust is important for the MIA driver is Nik Mohd. Hasyudeen Yusoff. He was accountants to effectively work as a team member with other elected on 28 July 2007 to take over from Abdul organisational members. Rahim Abdul Hamid. It is an extremely crucial time 19 The Contemporary Roles of for the Institute. Nik Mohd. Hasyudeen has to take on Internal Auditors the huge responsibility of addressing many new The Institute of Internal Auditors challenges to the profession. Accountants Today caught (IIA) has revised and updated up with him to see what’s in store for the Malaysian internal auditing standards accountancy profession and the MIA under his originally published in 1978. This leadership. new framework, renamed International Standards for the Professional Practice of Internal Auditing (“the standards”) was approved by IIA’s Board of Directors in July 2007.

National Accountants Conference 2007

21 What we can do about Climate Change It is tempting to think that there is either nothing that we need to do about Climate Change or that it is not a problem for Malaysians. Tempting, but wrong on both counts. 6 Editor’s Note Event Focus Management & Accounting

7 Regional Conference 2007 24 NAf MA for Small and Medium Providing the Growth Impetus for the Iskandar Development Enterprises Region 27 Management Accounting Best Practices in SMEs Business & Accounting A Case Study of KEU Control Engineering Sdn Bhd 14 The Perfect Fit 30 Value Drivers: What Makes Finding the right outsourcing provider One Company more Valuable for your business environment comes than Another? down to good preparation. Here, Phil The most successful and profitable businesses Fersht and Stephen Getty of Everest are those that respond positively to the needs of Group outline the five key steps to their stakeholders. Unfortunately, creating a scorecard with meaningful finding the best fit and the five golden and manageable measures can be a challenge for any organisation. rules to bear in mind along the way.

2 ACCOUNTANTS TODAY • November 2007 Malaysian Institute of Accountants Institut Akauntan Malaysia (Established under the Accountants Act, 1967)

Human Capital Strategy Better Life

33 Human Capital Risk-Significant Threat to 44 Stressing your Cholesterol Companies: If you are like most forward- Human capital risk such as skills shortages, succession issues and looking executives today, you the loss of key personnel, are some of the areas that provide the probably feel you are expected to be biggest challenge to risk managers. nothing short of a magician in terms of performance and results. With increasing demands on performance, a 24/7 work environment resulting from globalisation, 34 Finance & Accounting and a pace of change that is accelerating at breath-taking speed, is it any wonder then that you are stressed out every single day? Forward-Looking Finance Robert Shaw explains why the next generation of accountants need to be adept in knowledge management, forecasting and Institute News optimisation techniques. 46 MIA’s 21st AGM: Two Council Members re-elected and Kelantan Branch Chairman voted into the Council 36 Islamic Finance 46 MIA visits SSM Islamic Finance – Growing into a Sizeable Alternative 47 NPC and MIA to Help Small and Medium-Sized Accounting Financial Management System: KPMG Report Firms’ to Benchmark their Practices for Greater Efficiency The Islamic finance industry is here to stay, notes a recent KPMG 47 Practitioners’ Updates Session 2007 report entitled “Growth and Diversification in Islamic Finance”. 48 Penang Branch News 48 Sarawak Branch News 48 Sabah Branch News 38 IFRS Conference 2007 Updates

Driving Convergence in Accounting Standards Columns Following the success of the IFRS conference in Europe, and in recognition News from ACCA of the increased use of IFRSs worldwide, the 1st IFRS Conference in Asia 49 was held in Singapore on 29-30 August 2007 with the objective of further 50 News from CIMA driving convergence in accounting standards around the world. 51 News from CPA Australia 52 News from MICPA Notice to Members 53 News from ICAEW

40 IRB Update 40 Benchmarking Project 54 IFAC News 40 Capital Market and Services Act 2007 Members’ Update Travel & Leisure 55 New Registration, Ceased Operation and Name Change of Firms 56 Registration, Readmission and Resignation of Accountants 41 John and Jackie in Georgetown A self-guided walking tour lets you peek into the glamorous lives of America’s first royalty Accountants’ Corner Money Tree 58 Counting on Humour

42 What’s the One Money Lesson You Should Teach the Kids I’m not a betting man. But if I were, here’s a wager I’d accept in a 59 CPE Calendar heartbeat: If you have children, you want the best in life for them!

November 2007 • ACCOUNTANTS TODAY 3

Malaysian Institute of Accountants Institut Akauntan Malaysia www.mia.org.my today (Established under the Accountants Act, 1967)

The Malaysian Institute of Accountants is a statutory body set up under the Accoun- Vision and Mission tants Act, 1967 to regulate and develop the accountancy profession in Malaysia. The functions of the Institute are, inter alia: MIA’S VISION (a) To regulate the practice of the accountancy profession in Malaysia; • To be a globally recognised and respected business partner (b) To promote in any manner it thinks fit, the interests of the accountancy committed to nation-building. profession in Malaysia; MIA’S MISSION (c) To provide for the training and education by the Institute or any other • body, of persons practising or intending to practise the profession; To develop, support and monitor quality and expertise consistent (d) To determine the qualifications of persons for admission as members; and with global best practice in the accountancy profession for the (e) To approve, regulate and supervise the conduct of the Qualifying examination. interest of stakeholders. mia council editorial mia branches

PRESIDENT YBhg. Datuk Nur Jazlan Mohamed BRANCH CHAIRMAN Nik Mohd. Hasyudeen Yusoff (Public Relations Committee Chairman) Johor Johor Bahru Choong Shin Cheong, Roland VICE PRESIDENT EDITORIAL WORKING GROUP Tel: 07-227 0369 Fax: 07-222 0391 YBhg. Datuk Abdul Samad Hj. Alias (Dr.) YBhg. Dato’ Liew Lee Leong, Raymond (Chairman) YBhg. Datuk Abdul Samad Haji Alias (Dr.) Kedah & Perlis ACCOUNTANT GENERAL Y.M. Raja Dato’ Seri Abdul Aziz Raja Salim Alor Setar Chan Boon Jiunn YBhg. Dato’ Mohd. Salleh Mahmud YBhg. Dato’ Khalid Ahmad Tel: 04-442 2350 Fax: 04-442 2351 DEPUTY ACCOUNTANT GENERAL, CORPORATE Prof. Dr. Jeyapalan Kasipillai Kelantan Tuan Haji Sahar Othman Assoc. Prof. Dr. Nafsiah Mohamed Kota Bahru Billy Kang Assoc. Prof. Faridah Ahmad COUNCIL MEMBERS Tel: 09-748 2088 Fax: 09-744 2305 Sudirman Masduki Abdul Halim Husin Leong Chew Poon Melaka YBhg. Dato’ Ahmad Johan Mohammad Raslan Tong Chin Hoo Melaka Sim Lim Chan Beh Tok Koay Zahrah Abdul Wahab Fenner Tel: 06-336 1996 Fax: 06-336 1995 Chan Wan Siew, Paul Chen Voon Hann EDITOR Negeri Sembilan Christina Constance Foo Iszudin Mohd Amin Seremban Tan Teng Chai YBhg. Prof. Dato’ Dr. Daing Mohd Nasir Daing Ibrahim Tel: 06-454 1664 Fax: 06-454 5527 SENIOR COMMUNICATIONS EXECUTIVES Eow Kwan Hoong, Michael Anuja Ravendran and Aznita Zakaria Pahang Prof. Dr. Ibrahim Kamal Abdul Rahman Kuantan Foo Tui Lee, Joseph Kang Wei Geh, Billy COMMUNICATIONS EXECUTIVE Tel: 09-516 3788 Fax: 09-516 1635 Lam Kee Soon Rosliani Shafie Lee Yee Chong Penang Lim Thiam Kee, Peter publisher Penang Adelena Lestari Chong Liew Kim Yuen Tel: 04-229 4203 Fax: 04-229 5546 Malaysian Institute of Accountants YBhg. Dato’ Liew Lee Leong, Raymond Dewan Akauntan Perak Mohammad Faiz Mohammad Azmi 2 Jalan Tun Sambanthan 3, Brickfields, 50470 Kuala Lumpur Ipoh Soo Yuit Weng Mohamed Raslan Abdul Rahman Tel: +603-2279 9200 Fax: +603-2274 1783, 2273 1016 Tel: 05-253 7722 Fax: 05-255 2618 YBhg. Dato’ Nordin Baharuddin e-mail: [email protected] url: www.mia.org.my Assoc. Prof. Dr. Norman Mohd Saleh Sabah YBhg. Datuk Nur Jazlan Mohamed publishing consultant Kota Kinabalu Alexandra Thien Seow Yoo Lin Tel: 088-261 291 Fax: 088-261 290 Assoc. Prof. Dr. Shahul Hameed Mohamed Ibrahim Executive Mode Sdn Bhd (317453-P) Sarawak Assoc. Prof. Dr. Susela Devi Selvaraj Tel: +603-7118 3200, 3205, 3230 Fax: +603-7118 3220 Kuching Yeo Ah Tee Soh Siong Hoon, Sam e-mail: [email protected] Tel: 082-418 427 Fax: 082-417 427 Dr. Thillaisundaram Arumugam url: www.executivemode.com.my Uthaya Kumar K Vivekananda printer Terengganu Yeo Tek Ling Kuala Terengganu Tuan Haji Mohd. Ali Abbas BHS Book Printing Sdn Bhd (95134-K) REGISTRAR Tel: 09-622 3359 Fax: 09-622 6040 Lot 17-22 & 17-23, Jalan Satu, Bersatu Industrial Park Mohammad Abdullah Cheras Jaya, 43200 Cheras, Selangor EXECUTIVE DIRECTOR Tel: +603-9076 0816, 9076 0825, 9074 7558 Ho Foong Moi Fax: +603-9076 0785, 9074 7573 e-mail: [email protected]

Accountants Today is the official publication of the Malaysian Institute of Accountants (MIA) and is distributed to all members of the Institute. The views expressed in this magazine are not necessarily those of the MIA or its Council. Contributions including letters to the Editor and comments on articles appearing in the magazine are welcomed and should be sent to the Editor as addressed below. All materials without prejudice appearing in the Accountants Today are copyright and cannot be reproduced in whole or in part without written permission from the Editor. Editor, Accountants Today, Dewan Akauntan, 2 Jalan Tun Sambanthan 3, Brickfields, 50470 Kuala Lumpur, Malaysia Tel: +603-2279 9200, Fax: +603-2274 1783, e-mail: [email protected] url: www.mia.org.my

4 ACCOUNTANTS TODAY • November 2007 Publication Order Form

1 2 Accounting Control Fraud Auditing and Forensic Best Practices Accounting 3rd Edition by Steven M. Bragg by Tommie W. Singleton, Aaron J. Singleton, G. Publisher: John Wiley & Sons Jack Bologna and Robert J. Lindquist Price (RM): MIA member/Students : RM233.80 Publisher: John Wiley & Sons Non-MIA members : RM259.80 Price (RM): MIA member/Students : RM233.80 Non-MIA members : RM259.80

3 Out of Stock 4 Financial Reporting Standards Consolidated Financial in Malaysia Statements 4th Edition 2005 by Jane Lazar by Assoc. Prof. Tan Liong Tong Publisher: McGraw-Hill Education Publisher: Professional Advancement Achievement Price (RM): MIA member/Students : RM54.00 Centre Sdn Bhd Non-MIA members : RM59.90 Price (RM): MIA member/Students : RM94.00 Non-MIA members : RM105.00

5 6 International Financial Financial Reporting Reporting Standards Standards (IFRS) 2007 Publisher: Malaysian Accounting Standards Board (MASB) Publisher: International Accounting Standards Board Price (RM): MIA member/Students : RM75.00/set Price (RM): MIA member/Students : RM190.00 Non-MIA members : RM90.00/set Non-MIA members : RM250.00

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Malaysian Institute of Accountants Dewan Akauntan, 2 Jalan Tun Sambanthan 3, Brickfields, 50470 Kuala Lumpur. . Tel: +603-2279 9200 Fax: +603-2279 9386 e-mail: [email protected]. For enquiries, please contact Development & Promotions Department November 2007 • ACCOUNTANTS TODAY 5 EDITOR’S NOTE

Addressing the needs of the Accountancy Profession in Malaysia

As the Malaysian Institute of Accountants celebrates its 40th Anniversary, a lot has been said about the journey and the milestones MIA has achieved along the way. While these have been the results of collective efforts of many individuals, it is undeniable that the Institute has been led by several good men — visionaries who built a firm foundation for the profession to pave the way for greater things to happen. They gave the profession and MIA their time and talents selflessly, committed to the tasks that they were entrusted with. Joining these men is Nik Mohd. Hasyudeen Yusoff, who became the sixth President of MIA on 28 July 2007. For this month’s cover article, Accountants Today spoke to him to find out his Presidential Agenda for the next two years during his term and he shared with us some of the challenges for the profession and some insights on ...it is undeniable that the Institute what MIA and the profession need to do in facing these challenges. has been led by several good men While these are not entirely new — the direction of MIA has been etched — visionaries who built a firm in the Strategic Blueprint, which was formulated in 2001 and reviewed in foundation for the profession to 2006, Nik Mohd. Hasyudeen further articulated the need to be proactive via a three-pronged strategy for the profession to thrive. The article is a pave the way for greater things must-read for all those who are seeking to understand the needs of the to happen. They gave the profession accountancy profession in Malaysia and what they can do to remain rel- and MIA their time and talents evant in the current market. selflessly, committed to the tasks that The NAC 2007 is finally upon us this month and we do hope that you have registered to attend the event, which will offer an excellent opportu- they were entrusted with. nity for accountants and business professionals to catch up on the latest developments concerning the profession as well as business. Want to do your bit for the environment? John Zinkin has given us a short introduction to his presentation in What we can do about Climate Change on Page 21. There is also a case study on Keu Control Engineering Sdn Bhd, the company which won the Best Practice Award for SME during the National Award for Management Accounting (NAfMA) in 2005 and 2006. We hope that Keu would be able to inspire other SMEs to participate in future NAfMA competitions. We hope you enjoy this month’s issue of Accountants Today and find that this issue makes for interesting reading. To all our Hindu readers, we would like to take this opportunity to wish you a Happy Deepavali. Happy reading! AT

Editor Accountants Today letters to the editor

A key element in the world of publishing is what readers have to say. We want to hear from you on just about anything that appears in each issue of Accountants Today. Why not drop us a line now? contribution of articles

Accountants Today welcomes original and previously unpublished contributions which are of interest to accountants, business leaders, executives and scholars. Manuscripts should cover domestic or international accounting developments. Lifestyle articles of interest to accountants are also welcomed. Manuscripts should be submitted in English and range from 1,000 to 2,000 words. They can be submitted in hardcopy or softcopy. Manuscripts are subject to a review procedure without prejudice and the Editor reserves the right to make amendments which may be deemed appropriate prior to publication.

6 ACCOUNTANTS TODAY • November 2007 EVENT FOCUS

Regional Conference 2007 Providing the Growth Impetus for the Iskandar Development Region

n an effort to enhance the understanding of businessmen, “MIA believes that through this conference, financial experts, accounting and finance professionals on key developments accountants and business leaders will be able to share some new in the Iskandar Development Region (IDR) in Johor, the ideas on strategies and measures undertaken to promote the IMalaysian Institute of Accountants (MIA) organised its Re- Southern Growth Corridor,” he added. gional Conference (RC) 2007 at the Persada International Con- Among prominent personalities in the industry who shared their vention Centre in Johor Bahru on 10 and 11 September 2007. experience during the two-day conference were Dato’ Shahrir Abdul Themed, Southern Malaysia: Driving Regional Economic Growth, Samad (Public Accounts Committee Chairman), Tan Sri Dato’ the event saw more than 300 business leaders and financial ex- Muhammad Ali Hashim (Group CEO, Johor Corporation), John perts converge in Johor Bahru to discuss strategy and policy Zinkin (CEO, SIDC/Deputy Chairman, ICR Malaysia), Yang Mulia changes, operating models and organisational and social changes Tengku Mohd Ariff Tengku Ahmad (Director, Economy and Tech- to boost development in the IDR. nology Management Research Centre, MARDI), Dato’ Mamat Salleh According to the RC Organising Chairman, Sam Soh, RC 2007 CEO, Malaysian Palm Oil Association), Noor Izzah Mansor (Johor was organised as a platform for financial and business leaders to State IRB Director), VS Pandian (CEO, FranklinCovey Malaysia) and share their expertise in developing effective strategies to boost George Stewart LaBrooy (ED, Axis-REIT Managers Bhd). development in Southern Malaysia, particularly in elevating the A business forum entitled A Paradigm Shift for Accountants – IDR to greater heights. from Pure Accounting to Business Focus was also conducted, fea- Echoing the same message, MIA President, Nik Mohd. turing distinguished speakers such as ACCA Malaysia Advisory Hasyudeen Yusoff noted that the Government played an impor- Committee President Dato’ Khalid Ahmad and Chief Executive tant role in ‘facilitating and enabling’ economic growth in the cur- Officer of Purefit Gold Company Sdn Bhd Md Aizat Teh and MIA’s rent development in the four growth corridors. President Nik Mohd Hasyudeen Yusoff. He added that MIA and the accountancy profession as a whole During the two-day event, focus was also given to the changing are committed to be active partners in the development process scope and role of financial and business leaders in preparing them- at the IDR. selves to meet future challenges. AT Highlights During the RC 2007 Opening Ceremony

Bottom left to right … The Public Accounts Committee Chairman Dato’ Shahrir Abdul Samad launching the conference

MIA President Nik Mohd. Dato’ Shahrir delivering his The RC 2007 team having a light Hasyudeen delivering his keynote address discussion with the VVIPs before the Soh welcoming the participants speech opening ceremony

November 2007 • ACCOUNTANTS TODAY 7 Event Focus

Conference in Progress and Speakers in Action

John Zinkin Tan Sri Dato’ Dr. Veerinderjeet Singh Wan Abdillah Wan Chew Seng Kok, Muhammad Ali MD, Taxand Malaysia Ibrahim Managing Partner Zaid Hashim Sdn Bhd Ibrahim and Co.

Budget 2008 Highlights and Tax Updates by Nurul Izzah Mansor, Lee Li Ming and Tai Lai Kok

Exhibition and Business Networking RC 2007 Gala Dinner

Dato’ Shahrir visits the booths

Some The dinner in participants progress visiting the booths

8 ACCOUNTANTS TODAY • November 2007 COVER Setting the Pace, Moving Forward Credibility is Key for the Profession Anuja Ravendran

Ask a Formula 1 Grand Prix driver what it feels like to be sitting in the driver’s seat and chances are he’ll tell you of the immense responsibility he bears to secure success for his team. It is no different for anyone elected to the hot seat that is the presidency of the Malaysian Institute of Accountants (MIA). The newest MIA driver is Nik Mohd. Hasyudeen Yusoff. He was elected on 28 July 2007 to take over from Abdul Rahim Abdul Hamid. It is an extremely crucial time for the Institute. Nik Mohd. Hasyudeen has to take on the huge responsibility of addressing many new challenges to the profession. Accountants Today caught up with him to see what’s in store for the Malaysian accountancy profession and the MIA under his leadership.

November 2007 • ACCOUNTANTSACCOUNTANTS TODAYTODAY 9 Setting the Pace, Moving Forward: Credibility is Key for the Profession

s President, his role will entail useful in helping to improve the credibil- tion and globalisation. Therefore our mem- clearly articulating and com- ity and delivery system of the government. bers will have to think of innovative ways of municating the Institute’s While there are local issues to contend doing business. Let the acronym ‘S.M.’ (for A role and function to all its with, Nik Mohd. Hasyudeen says that the small and medium) stand for significant and stakeholders, now that the MIA has a clear profession needs to be cognisant of global meaningful from their clients’ perspective. structure. “My predecessors put together developments. “Markets all over the world They need to look beyond clients’ traditional the building blocks of MIA — the strate- are continuously undergoing changes due to needs of financial reporting and determine gic direction has already been established. pressures of globalisation and trade how they can help the client to be more com- Today, my job is to put things in perspec- liberalisation. In this context, another issue petitive and gain a better footing not only tive so people understand that what we are that the profession needs to be mindful of is locally but also globally.” doing is essentially for the good of all our the speed with which to react to all these Nik Mohd. Hasyudeen also feels that stakeholders.” changes. We need to move with the times.” there needs to be more cohesion between academia and accountants. “They need to A snapshot of the profession “Markets all over the world are work together on projects based on real and its challenges market needs and in the process hopefully MIA aspires to be a globally recognised continuously undergoing and respected business partner committed to nation building. “While carrying out our changes due to pressures of role as the regulatory body of the Malaysian globalisation and trade accountancy profession, MIA will have to lead the accountancy profession to contrib- liberalisation. In this context, ute to the development of the capital mar- another issue that the ket, the small and medium enterprise seg- ment and the public sector. Our members profession needs to be mindful are not only service providers to these segments but also part of them.” of is the speed with which to “Recent developments in the capital mar- react to all these changes. We ket tend to directly affect the credibility of our profession. When such events break need to move with the times.” out, aspersion is suddenly cast upon accountants because they are directly in- “Robust structures need to be in place volved in the financial reporting chain and so that we can cope with the constantly as such are expected to ensure that every- changing nature of the market. This is a thing is in order. This is why MIA requires knowledge-based profession. So on MIA’s that all its members adhere to global stan- part, we have to keep being involved in dards and best practices.” Members need the exploration of new knowledge and to understand that this is not meant to be sharing them with our members so they burdensome, but a control mechanism to can capitalise on these to better them- ensure that the credibility of the profession selves.” is maintained, he says. Another issue, lies in capacity building, “SMEs basically cover 99 per cent of especially for the small and medium mem- business entities in Malaysia. If you look ber firms. “There are complaints that be- at their contribution to GDP, which was cause of certain new developments in the about 32 per cent two years ago and ex- profession with regard to auditing public pected to rise to 37 per cent by 2010, this companies, they may lose out on business. indicates an area in which our members But here’s the thing: Firstly, we are princi- can get involved not only in terms of offer- pally driven by public interest and secondly ing financial accounting services but also all these standards being adopted are glo- advisory services to facilitate SMEs to bal standards which are also being adopted grow and become global players,” he says. by other countries in the world.” MIA would also like to encourage those “Malaysian accountants cannot back away from the public sector who are qualified to from adopting them because then we will be join the Institute so that they have access less competitive. Besides the companies to latest updates on the profession as well which are the clients of these firms are fac- as guidance. He believes that this can be ing the same challenges, such as competi-

10 ACCOUNTANTS TODAY • November 2007 Setting the Pace, Moving Forward: Credibility is Key for the Profession

develop new knowledge.” With under- “Credibility is a fragile thing — it is easily broken especially when standing of these elements, the academics can also transfer this knowledge to stu- trust is abused, when public interest is made to take a backseat in dents to equip them with relevant skills for when they join the workforce. the interest of personal gains. As such, MIA’s main role is to ensure that our members perform the roles expected of them, and Credibility is Paramount “Where would we be if we had no credibil- that public interest be always upheld.” ity? Our profession rests upon its ability to be credible, it’s as simple as that,” he offers. form the roles expected of them, and that responsibility of reporting financial truths, “Credibility is a fragile thing — it is easily public interest be always upheld.” to which we are privy because of our train- broken especially when trust is abused, when “The accountancy profession shares a ing. We have to place public interest above public interest is made to take a backseat in symbiotic relationship with the public. We everything else because it is our profes- the interest of personal gains. As such, MIA’s cannot afford to ignore public interests sional responsibility.” main role is to ensure that our members per- because we are often entrusted with the And this, quite simply put, is MIA’s

November 2007 • ACCOUNTANTS TODAY 11 Setting the Pace, Moving Forward: Credibility is Key for the Profession

raison d’étre. “We are here to ensure the “But because membership of MIA is introduce a similar committee that will look credibility of the profession is maintained mandatory for all accountants, we are go- into Professional Ethics so that members in line with public expectations.” ing to look at a process which will not be understand related issues and this knowl- The approach to MIA’s function in main- any more burdensome than what is good edge is beneficial in helping them manage taining the credibility of the profession, he for the profession in Malaysia. Apart from challenges in performing their profes- says, is three-pronged. staying in line with global benchmarks, we sional functions,” he says. understand that there is a need to consider Education and development local realities as well.” “Through active collaboration The first of the three is education and “This will be a very democratic process with professional bodies, stan- development, which will see an emphasis but at the same time robust enough to on capacity building for MIA members in make sure we comply with international dard setters and regulators, the areas concerning knowledge, skills and val- expectations. We will also put in place a ues. Through this measure, MIA wants to cost effective structure so that cost is not Institute is committed to ensu- ensure that its members are equipped with a hindrance for qualified people who want ring that the FRSIC implemen- the latest developments and knowledge in to become members.” the profession and are able to be effective tation guidance provided by the thought leaders. Professional standards and practices committee represents interna- “In further developing the The next strategy is to promote adher- tional best practices for MIA profession, and as a member of ence to professional standards and practices, Nik Mohd. Hasyudeen states. members to follow.” the International Federation of “In ensuring that the quality of work and All these initiatives, along with some oth- conduct of accountants in Malaysia meets Accountants, we are required to ers like the National Annual Corporate with public expectations, MIA will continue Report Awards (NACRA) and the National introduce competency assess- to promote professional values and practices Award for Management Accounting that are in line with global requirements (NAfMA), among others will also ensure ment, which is currently some- through the regulatory and implementation that we inculcate good values and foster a guidance it issues as well as by promoting thing that is in the pipeline.” culture of conforming to best practices.” adherence to the By-Laws. This will concern MIA, he adds, is also looking at forging professional ethics, auditing standards, ac- more winning partnerships with other counting standards and practice guidance.” Checks and balances organisations in order to bring concerted “It is necessary because the key to win- Nik Mohd. Hasyudeen wants to assure progress for its members. One such ex- ning over public confidence lies in main- member firms that compliance does not ample is the signing of the Memorandum taining the credibility of the profession by necessarily mean they will lose their busi- of Understanding with the National Pro- breeding a strong performance and con- ness to those who don’t (comply). “We will ductivity Corporation to help its small and formance structure,” he stresses. go after those who don’t because that’s the medium practitioners to benchmark their One of the activities that MIA has initiated only way to uphold public interest,” he practices for greater efficiency. in this regard was the formation of the Fi- stresses, adding that surveillance and en- MIA would continue to foster relation- nancial Reporting Standards Implementation forcement is something that MIA is very ships with bodies in countries where Ma- Committee (FRSIC) in January this year. serious about. laysia has strategic interest. China, Viet- The committee was established because the “We have rules and standards and we nam and India would be high on this Institute saw a need to create a strong and want to ensure standards are complied agenda, he states. The Focus Group on efficient capital market that is built upon solid with. However, if we keep introducing new Export of Services, which was established and credible financial reporting principles in rules but not enforcing the present ones, last year, has grown to include 26 firms addition to conforming to international finan- then we are not doing our job,” he says of beyond the 15 that were invited last year. cial reporting requirements,” he says. MIA’s final strategy in maintaining the This focus group continued to have dia- “Through active collaboration with profes- credibility of the profession, namely effec- logues with various parties including sional bodies, standard setters and regulators, tive surveillance and enforcement. MATRADE, SMIDEC and foreign profes- the Institute is committed to ensuring that the “While it is not MIA’s most favourite sional accountancy bodies such as IAI. FRSIC implementation guidance provided by function, we have to accept that those who “In further developing the profession and the committee represents international best flout the rules cannot be let off the hook. as a member of the International Federation practices for MIA members to follow. Punitive measures are undoubtedly the last of Accountants, we are required to introduce “The establishment of FRSIC precedes resort in any situation but its existence is competency assessment, which is currently a few other similar initiatives that we are highly necessary to ensure checks and something that is in the pipeline,” he says. looking to implement. There are plans to balances in the system,” he says.

12 ACCOUNTANTS TODAY • November 2007 Setting the Pace, Moving Forward: Credibility is Key for the Profession

Already in place are surveillance measures Hasyudeen says that the functions of the “When corporate scandals such as the Practice Review programme, Fi- Institute have already been set out by the nancial Statements Review and CPE Audit. Accountants Act, 1967. “Being clear about break out, the public puts us As for enforcement, three core initiatives, what we have to do is one thing, but we namely investigation and disciplinary and ap- also need the legal infrastructure in place.” under intense scrutiny, asking peal activities, are already being conducted In order to increase its bite, MIA is work- us how can we let these things by the Institute. In fact, the Institute is pres- ing on a proposal to amend the Accoun- ently in the process of enhancing its surveil- tants Act, 1967, an effort undertaken to happen. Well, we are ready to lance and enforcement effectiveness by cre- ensure that the Act remains relevant and exercise our punitive rights if ating new models and allocating more hu- dynamic to meet future challenges and the man capital. requirements of the accountancy profes- necessary, but the present “When corporate scandals break out, the sion in Malaysia. public puts us under intense scrutiny, ask- “The review of the Act resulted in pro- regulation only allows us to regulate our own members. An Overview of MIA’s Roles And that is what we will do — without fear or favour — in Users of the Regulators services of Accountants order to ensure that public accountants interest is protected at the end Government Public of the day.”

On the establishment of the Public Com- Maintaining the CREDIBILITY of the Malaysian Accountancy Profession panies Accounting Oversight Board (PCAOB) under the auspices of the Secu- No more burdensome than necessary rities Commission (SC), he states that MIA fully understands and supports it. “MIA is in consultation with the SC on this matter Profession Development Professional Standards Surveillance and and Practices Enforcement and we trust that we will be given a role to Public Interest Focused Policies Professional Ethics Practice assurance play in supporting this initiative.” • Knowledge Dissemination • Auditing Standards • Monitoring and Surveillance • Values Inculcation • Accounting Standards • Disciplinary Enforcement • Capacity Building Implementation Guidance Taking the Institute to the next level • Visibility • Practice Guidance For MIA to be in a better position to deliver the above, Nik Mohd. Hasyudeen “There will be three divisions reflecting the 3-pronged states that there is a need for a restructuring exercise within the Institute’s manage- strategy and there will also be a support services division ment. “There will be three divisions reflecting the 3-pronged strategy and there will providing the corporate services.” also be a support services division providing the corporate services.” He says that the Institute and therefore ing us how can we let these things happen. posals covering various issues such as im- he, as its President, will continue to be Well, we are ready to exercise our puni- proving regulatory and compliance pro- guided by its Strategic Blueprint, which tive rights if necessary, but the present cesses and managing issues related to edu- was formulated in 2001 and reviewed in regulation only allows us to regulate our cation and globalisation,” he says. 2006. own members. And that is what we will do The Institute this year initiated a public “All my predecessors led the Institute in — without fear or favour — in order to en- consultation exercise via a Consultative laying down strong fundamentals and es- sure that public interest is protected at the Document to seek comments on the pro- tablishing the direction in which the ac- end of the day.” posed amendments to the Act. Public con- countancy profession in Malaysia should sultation on the Consultative Document head towards and I am here together with Proposal on amendments to the ended on 15 September and MIA received my fellow Council Members and the rest Accountants Act, 1967 12 responses. “Having looked at the com- of the team, as well as the membership at But in MIA’s case, having strategies ments, the proposal is presently in its final large, to take this work to the next level,” alone will not suffice. Nik Mohd. stages,” he says. he says. AT

November 2007 • ACCOUNTANTS TODAY 13 BUSINESS & ACCOUNTING

The Perfect Fit

Phil Fersht and Stephen Getty

Finding the right outsourcing provider for your business environment comes down to good preparation. Here, Phil Fersht and Stephen Getty of Everest Group outline the five key steps to finding the best fit and the five golden rules to bear in mind along the way.

he global business environment has developed at such a rapid pace in the last five years Tthat senior business executives can no longer afford to ignore globalisation, offshore sourcing and full-scope outsourcing. All are essential to keeping a business competitive and fully optimised in terms of its people-process-technology balance. This article looks at how to formulate a readiness strategy for business process outsourcing (BPO) and evaluate the various BPO options. As we see it, there are five key steps to finding the perfect partner.

Step 1: Introspection First, you must decide what will be outsourced and develop your BPO strategy accordingly. In a BPO relationship, the supplier delivers the services to the buyer using resources which are supplier owned and managed. This may include any or all infrastructure, applications and people. For the business to make the transition to this model effectively, certain questions must be answered. What are your core competencies? What processes can be effectively outsourced? What processes must be retained? Can you allow the processes to leave your direct control culturally? Have other companies in your space taken this step successfully? What is your risk acceptance?

14 ACCOUNTANTS TODAY • November 2007 The Perfect Fit

What are the targets you wish to Step 3: Dating are signed. achieve? After a preliminary pool of candidates Communicating your needs to the ser- Do you have any benchmark of how you has been selected, it is time to get to know vice providers and soliciting their feed- are currently progressing with these them better. At this point, the common back. processes? approach is to send an RFP out to the can- Understanding the suppliers’ business didate BPO service providers. This is cer- In response, establish a team of key delivery models. tainly worth doing, but it is better to get people to consider all aspects of the Visiting the suppliers’ facilities. really involved with the suppliers than to outsourcing question. This team’s first task Assessing the process and technology fit. rely on impersonal responses. The candi- is to look at the organisation’s reasons to date BPO service providers will often be Assessing the cultural fit of suppliers. outsource. It might be to reduce or con- more than glad to meet you and develop Working with service providers to de- trol operating costs, free up resources to the relationship early. velop high level solutions. be able to focus on core business, gain ac- During this period, the following activi- Reviewing supplier proposals and ap- cess to technology capabilities or any num- ties should be undertaken: proaches. ber of other reasons. Next, you must identify areas that would benefit from Building relationships with service pro- With these ticked off, you should be able outsourcing. Establish your current viders. to select the best three or four candidates baseline costs and the level of performance Ensuring that non-disclosure statements with which to proceed. you have achieved. Your team then needs to analyse whether Sourcing BPO: the five golden rules it makes sense to go forward with 1 Avoid BPO being driven by a personal agenda outsourcing. You should confirm that all Assign a sourcing champion who can make educated and objective decisions for your business. team members understand the ramifica- Constant indecision is the worst situation to be in. All too often, individuals are motivated to tions of outsourcing: your organisation will undertake a BPO advisory project with a destructive agenda. Get a champion as a client who is be turning over control of your outsourced able — and empowered — to make decisions. An adviser can help drive a decision, rather than process to a supplier, the supplier will man- just proving that he or she is on the right side of some internal dispute. age the process and you will be managing 2 Create option value for your organisation the supplier. Providers today offer many flavours of BPO that create a future option value. Option value is the ability to change sourcing direction if outcomes change — for example, if your company goes Step 2: Courtship through a merger or acquisition or wants to bring certain processes back in-house. Most of Like marriages, BPO are long-term re- today’s providers can work with you to cobble together global BPO solutions that suit your lationships, but BPOs come with prenup- current and future needs. Different options will have different impacts on cost, but may be tial agreements. A company must make worth taking if they provide further options for the future. certain that it selects the best partner from 3 Accept change the pool of available candidates. However, Many companies start off by thinking they can treat their HR or Finance & Accounting (F&A) it is often difficult to know who the best in the same way they did before the BPO transaction but soon realise they have a great oppor- service providers are and how to get past tunity to drive single instances of accounts across disparate F&A systems and integrate dispar- their marketing to understand their real ate HR systems and applications. Many buyers of BPO also leverage their suppliers’ delivery capabilities. expertise to drive process rigour, based on Six Sigma and LEAN methodologies that their There are some key questions that need organisations have not previously experienced. The key is to learn about these businesses and asking when considering a supplier. technology benefits early on in the BPO discovery process and be prepared to leave your own- ership of processes at the door. BPO, especially offshore outsourcing, is not just ‘my mess for What is the supplier’s industry focus? less,’ which was the fundamental error of some earlier engagements. What geographies does the supplier 4 Engage a third party adviser serve? Get research advice from analysts early on in the process. Getting the sourcing decision right Where does the supplier provide the ser- will have a major impact on the short, medium and long-term health of your organisation. How- vices from? ever, you need to be confident you have chosen trusted third parties with a proven track record Can the supplier scale to your needs ef- of success. Do not cut corners to save a small sum of money in the grand scheme of things. fectively? Also, do not simply judge advisers by the brand names on their Powerpoint presentations; in- vestigate how those clients are faring today. A good adviser will be able to look at the entire Has the supplier had previous successes contract lifecycle and not simply the initial transition phases. in this area? 5 Source research from analysts with BPO experience What experience does the supplier have Access to targeted research can go a long way towards getting you on the right track. You should with comparable deal sizes? do this even if you already have a sourcing adviser. Avoid analysts who claim to cover everything Is the supplier financially stable? under the sun and engage those who specialise in BPO. Ask them how they collect their data and Is the supplier willing to commit to you? be wary of sweeping statements that are not backed up by hard facts and experience.

November 2007 • ACCOUNTANTS TODAY 15 The Perfect Fit

Step 4: The proposal Sourcing BPO: what are you looking for? Having narrowed down your prospective Most companies engaging in BPO expect the service provider they select to transition and suitors to a handful of potential partners, you transform the business processes rapidly, correctly and efficiently in terms of personnel and must think about what the future will look like cost. Although this is a difficult task, service providers that are a good corporate fit can ensure with each of these finalists. This means pric- that the BPO strategy meets these aggressive goals. By approaching the selection of a BPO ing and terms must be decided. Many issues service provider in a knowledgeable manner, buyers can apply filters to the multitude of BPO will arise during negotiations, including: offerings in the market today. As such, buyers can do a number of things. Service levels and descriptions Look first at the market presence of a BPO provider and assess whether it provides the scope Transitions costs and scale of services and service levels you are going to need. Process expertise is always Master services agreement going to be a critical factor. Pricing schedules Choose a supplier that has a solid change management process and mechanism, and one that can integrate into your corporate change management process. Employee transition or dismissal plans BPO engagements nearly always intersect into a lot more areas of the organisation. If your and costs outsourced process is finance and accounting (F&A) or HR, for example, those processes Continuous improvement expectations touch everything in your organisation, and you will need a supplier with the capability to and ongoing value creation integrate or interface. Panel 1 illustrates the BPO multi-process environment and the inter- Shared go-to-market strategies sections between the finance, HR and procurement functions, underpinned by IT and net- Governance modelling working infrastructure. Length of agreement It is worth evaluating a multi-tower strategy, especially if your organisation is going to outsource Communications plan other processes to other vendors. You need to know how well the supplier will work with other vendors, as your supplier must never be a roadblock to getting things done. Some BPO buyers Market comparisons have opted to outsource multiple ‘towers’ to a single vendor to take advantage of synergies Final selection of BPO service provider across business and IT processes, while others have opted for best-of-breed approaches and Remember that you want a long-term outsourced IT, HR, F&A and often procurement to separate vendors. relationship with the BPO service provider Buying integrated HR, F&A and procurement services is a growing phenomenon, but these you select. This means a period of deter- ‘bundled’ deals represent only 15% of the overall BPO market, and only half of these go to a mining mutual benefit rather than just try- single service provider. Still, the potential for greater process optimisation and cost efficiencies ing to obtain the lowest price. is now recognised, and we are already seeing increased activity in bundled BPO offerings as suppliers demonstrate the synergies of having the application, platform and business process Step 5: Commitment all managed by a single provider. Buyers are also showing a greater tendency to evaluate their outsourcing options across all the major towers in a single step, with F& A as the hub process. For this relationship to succeed, certain steps must be taken and key factors kept Panel 1 The BPO Multi-Tower Environment in mind. This is a two-way relationship – there is Procurement HR F&A (indirect materials) no ‘us vs them.’ If one fails, both fail. Full service BPO Governance and communication must HR F&A S2P strategy strategy strategy be effective and efficient. The relationship must be adaptable to Capital budgeting change. Internal audit Performance mgmt. Treasury and risk mgmt. Speed data mgmt. Service delivery and the relationship HR design Budget/forecasting Strategic sourcing must be continuously analysed to ensure Regulatory and Regulatory and compliance Vendor mgmt. Transactional they remain healthy. compliance Mgmt. reporting and analysis Demand mgmt. You should ask for help when you need Training and development General accounting Day-to-day purchasing Recruitment and selection it — not after a failure. Fixed assets Customer service Compensation Accounts receivable Procurement systems At long last, congratulations are in order. Benefits Accounts Payroll Tax Performance mgmt. You have travelled a long and difficult road Employment data mgmt. payable and are now poised to venture into a bright Call centres future with your new partner. AT Applications maintenance Voice and data networks Helpdesk Desktop Stephen Getty is a Senior Consultant while Phil Data centres ERP Applications development Fersht is the Vice-President, Research at Everest Group. This article is contributed by IT strategy CIMA and is extracted from the CIMA publication on Excellence in Leadership (Business Pro- Source: The Everest Research Institute 2006 cess Outsourcing).

16 ACCOUNTANTS TODAY • November 2007 BUSINESS & ACCOUNTING

Does Trust Matter for Control?

Nor Aziah Abu Kasim

In responding to globalisation and competition, organisations form strategic alliances, networked or virtual organisations or they outsource. Emsley (2006) argues for the need to rely more on trust than control for managing these new forms of organisations. At the intra-organisational level, mutual trust is important for accountants to effectively work as team members with other organisational members.

nderstanding the relationship ics, sociology and social psychology. Amme- prediction of future action is based on the between trust and control can ter et al. (2004: 49) defines trust as “an ex- outcome of past interpersonal relationship. help accountants appreciate pectancy that the object of a trust evaluation As a process, trust can develop and evolve Uthe importance of trust in se- … will behave in a predetermined manner.” over several levels from mistrust, neutral curing cooperation from team members at Thus, trust is important for predicting (neither trust nor mistrust), cooperation the workplace. The relationship between behaviour through reducing the uncertainty (somewhat trusting) and, finally, trusting. trust and control is not clear in accounting of others’ actions and the consequences of Since trust is a dynamic concept, we need to literature but there are evidences (e.g. Nor those actions. manage the sustainability of a trusting rela- Aziah and Scapens, tion. In addition, there is 2007) that show trust reciprocity in trust rela- influences the effective- tionships, that is, we ness and conse- trust those who trust us. quences of accounting Likewise, we do not control practices. trust those who distrust This paper asserts us. that trust matters for Trust embraces not control. Accountants only the expectations of therefore cannot afford the other party, but also to take trust for the risks involved in the granted. Whether we context in which the de- need more trust or cision to trust is taken. more control for man- Trust facilitates the tak- aging, it is important ing of risks, thereby en- for us to first under- abling decisions to be stand the importance made without lengthy of trust and then its re- deliberation and de- lationship with control. This paper hopes to Social psychologists define trust as the ex- tailed information (Misztal, 1996). This sug- provide some insights into the importance pectation of one party towards the other. gests that decision making may not follow a of both trust and control in promoting de- They also emphasise the importance of purely rational choice perspective in which sired behaviour and achieving organisational knowing the risks related to those expecta- information is assessed before choosing op- goals. tions and the social context that may affect timal decisions. Instead, trust can replace the the development or deterioration of trust. need for detailed information in decision Trust This perspective regards trust as socially con- making. In other words, trust can serve as a The concept of trust is elusive since it can structed through the process of interaction coordination mechanism that reduces time be defined in many ways and has been dis- between groups in their particular context. and costs and simplifies decision making. cussed in various disciplines such as econom- Trust has a temporal dimension since the To summarise, a trusting workplace rela-

November 2007 • ACCOUNTANTS TODAY 17 Does Trust Matter for Control?

tionship is beneficial because it can promote use of informal control is more appropriate quently, the budgetary control was ineffec- cooperation between team members, encour- for innovation and creativity. This implies that tive for influencing the desired behaviour. ages controlled risk-taking and saves time increased reliance on integrity and trustwor- Nonetheless, social controls are not suffi- and money. thiness rather than regulation through com- cient when there is incompatibility in the pliance with accounting procedures should ways of thinking amongst organisational Control augur well with creativity and innovativeness. members and when a large group is involved. It is generally believed that accounting It can be generalised that formal accounting In these circumstances, the accountants had control can lead to enhanced organisational controls relative to social control may under- to resort to formal accounting controls us- efficiency and effectiveness, and ultimately mine trust and may stifle creativity and ing rules and procedures. Although trust improved economic fitness. Accounting in- innovativeness. might not be adequate for control, the evi- formation is assumed to be useful for allo- dences from prior studies (e.g. Johansson cating resources, motivating the perfor- Control and Trust and Baldvinsdottir, 2003; Nor-Aziah and mance of certain activities, and exercising Based on the above, both trust and con- Scapens, 2007) show that trusting the ac- influence and control; and, through such use, trol can improve the probability of desired countants and accounting is necessary if the enhancing financial accountability. In reality, behaviour. They are therefore similar and information is to be used for enhancing ac- however, accounting control can have dys- desirable since both facilitate the reduction countability. Without trust, formal account- functional consequences. of uncertainty. Trust facilitates control being controls might not be effective. Control Goddard (2004, p. 545) suggests “The cause it can replace the need for detailed and trust are therefore inter-related. practice of accounting institutionalises the information in decision making and serve notion of accountability and the right of some as a coordination mechanism that reduces Conclusion people to hold others to account for their time and costs and simplifies decision mak- Mutual trust facilitates an effective team- action.” Through the imposition of an ac- ing. work amongst organisational members. Al- counting system (like budgeting), financial Since it is difficult to predict the potential though trust facilitates, it cannot become a results are reported up through the author- benefits and risks related to the conse- direct substitute for the formal accounting ity structure, and hierarchical accountabil- quences of the decision to trust, there is un- control in all circumstances. We may con- ity produces compulsory visibility. But this certainty as a result of engaging in trust re- tinue to need formal accounting control but visibility becomes part of the control mecha- lations. A possible means of reducing this perhaps not to the extent that its mechanis- nism used to promote economically rational uncertainty is to choose carefully whom one tic emphasis on techniques and rules behaviour. can trust; for example, by engaging in trust jeopardises flexibility, autonomy and speedy A control system comprises formal and in- relations only with individuals who are com- decision making and constraints creativity formal control mechanisms (Das and Teng, petent in terms of their technical abilities, and innovation. If it does, it is difficult for the 1998). Whereas formal control includes pro- skills and know-how. It is relatively easier accountants to secure trust and cooperation cedures, specific financial targets and strict for others to cooperate with accountants if from others in enacting an effective control evaluation of performance, social control these accountants are perceived as trust- system. Without developing a trusting rela- emphasises shared goals, values (such as worthy, competent and reliable. Coopera- tionship with others, the effectiveness of ac- trustworthiness) and norms to secure coop- tion enhances effective communication, counting control practices can be questioned. erative behaviour. Both formal and informal learning and problem solving and thus Since trust does matter, but is not necessar- controls encourage desirable behaviour but should contribute to influencing the effec- ily sufficient on its own, accountants need to formal control is stricter in evaluating per- tiveness and consequences of accounting mix trust with a less mechanistic form of ac- formance. By prescribing specific perfor- control systems. counting control. AT mance goals (output control) or specific pro- Nor-Aziah and Scapens (2007) argue that cesses (behaviour control), the autonomy of formal controls, such as the budgetary con- References the organisational member in deciding his trol, have a negative impact on the level of Ammeter, A. P., Douglas, C., Ferris, G. R. & Goka, specific goals or behaviour is reduced. For- trust. The budgetary control in their case H. (2004), “A social relationship conceptualisation Human mal controls may create stress, thereby af- organisation was intended to strengthen the of trust and accountability in organisations,” Resource Management Review, 14 (2004). pp. 47-65. fecting mutual trust. financial accountability of operations manag- Das, T. K. & Teng, B. S. (1998), “Between trust and In social control, behaviour is influenced ers. However, the imposition of formal con- control: developing confidence in partner coopera- through shared goals, values and norms. trols in a mechanistic way was perceived as tion in alliances,” Academy of Management Review, Since there is no explicit restriction on mem- a signal of mistrust in their competence and/ 23 (3). pp. 491-512 bers’ behaviour, more interpersonal respect or integrity. The accounting control reduced Emsley, D. (2006), “Is trust the new management control?”, In The Black, 8. pp. 60. and less mistrust are implied in social con- the autonomy of operations managers and trol than in formal control. Although there is gave them the impression that they were not Nor Aziah Abu Kasim is from the Department of more autonomy and trust, social control is to be trusted. In turn, the operations manag- Accounting and Finance, Faculty of Economics and Management, Universiti Putra Malaysia. She can be often not adequate to control behaviour. How- ers reciprocated by not trusting the accoun- contacted by e-mail: [email protected] for ever, in today’s changing environment, the tants or their budgeting systems. Conse- more information on reference materials.

18 ACCOUNTANTS TODAY • November 2007 BUSINESS & ACCOUNTING

The Contemporary Roles of Internal Auditors Andrew Nga Lip Shin

The Institute of Internal Auditors (IIA) has revised and updated internal auditing standards originally published in 1978. This new framework, renamed International Standards for the Professional Practice of Internal Auditing (“the standards”), was approved by IIA’s Board of Directors in July 2007.

ccording to IIA, the standards delineate basic principles that represent the practice of inter- A nal auditing as it should be, provide a framework for performing and promoting a broad range of value-added internal audit activities, establish the basis for the evaluation of internal audit performance and foster improved organisational processes and operations. The standards are mandatory for all IIA members. They require that contemporary internal auditors be familiar with risk management, consulting skills, quality assessment and governance review.

Internal Auditors & Risk Management The standards allow only the risk-based audit approach. This approach requires annual risk assessment by internal auditors and plans their activity as such. The wording in the standards provide insights and clues on this aspect (as quoted below). Furthermore, the standards require the internal auditor to be intimately involved in the organisation’s risk management system by playing a pro-active role in monitoring and evaluating the effectiveness of the system. The chief audit executive should establish risk-based plans to determine the priorities of the internal audit activity,

November 2007 • ACCOUNTANTS TODAY 19 The Contemporary Roles of Internal Auditors

consistent with the organisation’s goals. executive on the necessity of having qual- trol, and governance. Therefore, besides The internal audit activity’s plan of en- ity programme assessments that cover the compliance, the internal auditor is also po- gagement should be based on a risk as- effectiveness of the internal audit activ- sitioned to monitor and evaluate the risk sessment, undertaken at least annually. ity. The chief audit executive could per- management framework and governance The input of senior management and the sonally perform the internal assessment process. Internal auditors are no longer board should be considered in this pro- of the internal audit activity. However, seen as playing the role of “policeman” or cess. external assessments should be con- merely “compliance officer,” but “risk man- ducted at least once every five years by a agement evaluator,” “governance process The internal audit activity should assist qualified, independent reviewer or review reviewer and ethics promoter” and “inter- the organisation by identifying and evalu- team from outside the organisation. The nal consultant.” The above have changed ating significant exposures to risk and con- chief audit executive should ensure the our traditional perspective of internal au- tributing to the improvement of risk man- internal audit activity adds value to the diting roles in the organisation. Internal au- agement and the control system. organisation. ditors should not approach management moni- The internal audit activity should in an adversarial way. They must build and tor and evaluate the effectiveness of the Internal Auditors & Corporate Governance maintain a relationship with management risk management system organisation’s .” Some may not be aware that the stan- and work as partner to fix a problem. Based on the results of the risk assessment, dards require internal auditors to review Hence, it is imperative for internal auditors the internal audit activity should evaluate their organisation’s corporate gover- to have appropriate knowledge and skills the adequacy and effectiveness of con- nance. In fact, internal auditors should to perform all the roles mentioned in the trols encompassing the organisation’s assess and make appropriate recommen- standards. governance, operations and information dations for improving the governance pro- It remains to be seen as to what extent systems. This should include: cess. They should promote ethics and small public companies will adopt the • Reliability and integrity of financial and values within the organisation; ensure ef- standards, particularly in the field of risk- operational information. fective organisational performance man- based audit and risk management, exter- • Effectiveness and efficiency of opera- agement and accountability; effectively nal quality assurance and governance re- tions. communicate risk and control information view. Risk-based audit and governance • Safeguarding of assets to appropriate areas of the organisation; reviews demand internal auditors to have • Compliance with laws, regulations, and and effectively coordinate the activities of some necessary skills such as good soft contracts. and information exchange among the skills, sufficient knowledge to identify the board, external and internal auditors and indicators of fraud, knowledge of key in- Internal Auditors & management. formation technology risks and controls, Consulting Activity Governance review may lead internal risk assessment skills and the ability to The standards encourage internal audi- auditors into areas not previously explored. communicate with senior management tors to provide consulting activity to the Nonetheless, the Malaysian Code on Cor- and board members. Therefore, internal organisation in addition to the traditional porate Governance (Revised 2007) has pro- auditors should continuously enhance role of assurance. The IIA has added the vided a checklist for internal auditors. For their knowledge, skills and other compe- word “consulting” to its definition of inter- example, does the audit committee meet tencies in order to meet the requirements nal auditing as it recognises this as a new with external auditors without executive of the standards. role for the internal auditor. Furthermore, board members present at least twice a As the audit committee bears the over- guidance for consulting services is repeat- year? sight responsibility of internal auditing, it edly mentioned throughout the standards. Like the standards, the code asserts that is important for its members to understand Let us take a look at the latest definition of internal auditors are responsible for the the standards and be made aware of the internal auditing by IIA: regular review, and/or appraisal of the ef- contemporary roles of internal auditors. “Internal auditing is an independent, fectiveness of the risk management, inter- The first question the audit committee objective assurance and consulting activity nal control, and governance processes should ask is whether the audit charter is designed to add value and improve an within the company. still relevant and reflects the new roles of organisation’s operations. Its helps an or- The IIA expects internal auditors to fully internal auditors. AT ganisation accomplish its objectives by comply with the standards except those bringing a systematic, disciplined ap- that are prohibited by laws or regulations. Reference proach to evaluating and improving the ef- Then, they should comply with all other International Standards for the Professional Prac- tice of Internal Auditing. fectiveness of risk management, control, parts of the standards and make appropri- and governance processes. Malaysian Code on Corporate Governance (Re- ate disclosures. vised 2007). As mentioned earlier, the standards have Internal Auditors & Quality Assurance clearly defined the main scope of internal To contact Andrew Nga Lip Shin, please e-mail: The standards remind the chief audit auditing as being risk management, con- [email protected] or Tel: 012-2765410

20 ACCOUNTANTS TODAY • November 2007 NATIONAL ACCOUNTANTS CONFERENCE 2007

What we can do about Climate Change John Zinkin

It is tempting to think that there is either nothing that we need to do about Climate Change or that it is not a problem for Malaysians. Tempting, but wrong on both counts.

November 2007 • ACCOUNTANTS TODAY 21 What we can do about Climate Change

limate Change is upon us and “Industrialisation does not only spew out billions of tonnes of CO it is urgent both at a global and 2 local level. If it progresses un- to increase the pace of global warming; it also increases the Cchecked the consequences are demand for fresh water which is in increasingly scarce supply and potentially catastrophic globally and locally. That is the bad news. The good news the waste it creates pollutes the environment, leading at the same is that we can do something about it, and we can make a difference. The accounting time to a shortage of land for landfills. These are consequences profession in particular has a role to play, globally, but also locally in Malaysia.” which has the double benefit of doing good and providing a new source of revenue. dengue, JE and Nipah virus); ment — a challenge which will lead to a It is now recognised by even George Lower agricultural production as rising source of new revenues if it is met. Bush that the recorded rises in temperature sea levels reduce the land area available One of the key messages that will be are the result of human activity. There is no for rice and aquaculture, and changes in shared at the National Accountants Con- longer any argument on this point. Since the the patterns of rainfall harm oil palm and ference 2007 is that climate change is ur- Second World War more people have been even durian yields; gent; it is a local issue as well as a global born than in the whole of human history More extreme weather with heavier and one, and it will make the accounting pro- before 1945. Another 3.5 billion people are more concentrated rainfall, followed by fession more relevant if accountants are

expected before population stabilises, bring- periods of drought, leading to less potable smart enough to use it to advantage. ing the total to around 10 billion. water, not more. As a professional in financial and business This does not just put a strain on the At its most extreme, some parts of management, you owe a duty to protect our planet in terms of mouths to feed; it is worse Penang and Johor environment and than that since most people have the ambi- may even disappear “… the challenge to the ensure that you are tion to live an American lifestyle if they can into the sea. helping your afford it. Unfortunately we need three So what can we accounting profession is how to organisation in Earths to support such a lifestyle and we do? The answer is a adopting the right only have one. Industrialisation does not great deal, if we measure the impact of what we business strategy in only spew out billions of tonnes of CO to adopt the three Rs of the long run. 2 do on the environment — increase the pace of global warming; it also Reduce, Re-use and increases the demand for fresh water which Recycle as the basis a challenge which will lead Don’t miss John is in increasingly scarce supply and the of how we live and to a source of new revenues Zinkin’s presenta- waste it creates pollutes the environment, do business, as will tion at the National leading at the same time to a shortage of be explained at the if it is met.” Accountants Confer- land for landfills. These are consequences National Accoun- ence 2007 on 12 and globally, but also locally in Malaysia. tants Conference 2007. 13 November 2007 at Kuala Lumpur Unchecked, the consequences of global More intriguingly, the challenge to the Convention Centre. Secure your seat today! warming for Malaysia are: accounting profession is how to measure Call us at 603-2279 9200 or visit More mosquito-borne diseases (malaria, the impact of what we do on the environ- www.mia.org.my/nac AT

22 ACCOUNTANTS TODAY • November 2007 The National Accountants Conference 2007 is claimable under the SBL scheme of the Human Resource Development Fund (HRDF). For more information on the SBL scheme, please log on to www.mia.org.my/nac.

NAC FLYER FRONT

November 2007 • ACCOUNTANTS TODAY 23 MANAGEMENT & ACCOUNTING

For Small and Medium Enterprises

he National Award for Manage- ria used in NAfMA for SMEs. Part Two pre- companies with annual sales turnovers not ment Accounting (NAfMA), sents the winning company for the Best exceeding RM25mil and full-time employ- which is organised collabora- Practice category: KEU Control Sdn Bhd. ees not exceeding 150. According to the Ttively by the Malaysian Institute International Trade and Industry Ministry of Accountants (MIA) and the Chartered SMEs in Malaysia statistics, in 2003, SMEs constituted about Institute of Management Accountants SMEs play an important role in sustain- 92 per cent of the total number of compa- (CIMA), had a humble beginning. ing domestic and regional economic nies registered with the Companies Com- Launched in April 2004 by the CIMA (UK) growth, in addition to being important mission of Malaysia and contributed 29.1 president, it was initially targeted for the agents for alleviating poverty in developing per cent of total manufacturing output, 26.1 larger corporations, namely public-listed countries. SMEs in Malaysia are defined as per cent of value-added and 32.5 per cent of companies and multinational compa- total employment. Thus, SMEs repre- nies. The first year NAfMA event was sent one of the important segments a huge success. Big name corpora- of the Malaysian economy (MSC Ma- tions such as Malayan Banking Bhd, laysia Today website). Shell Refining Bhd, IBM, Malaysia’s National Agenda for Pharmaniaga Bhd, DRB HICOM as- SME development includes the sociates and Resorts World Bhd were government’s aspiration to produce among the final short-listed compa- a strong and dynamic SME sector, nies that participated in the inaugu- which effectively would stimulate the ral event. In 2005, the Organising economy and contribute to a wide Committee agreed to include another range of economic development ob- target group for the smaller compa- jectives. The growth of successful nies. Hence, NAfMA for small and me- SMEs will ensure efficient use of re- dium enterprises (SMEs) was intro- sources, employment creation, mobi- duced. lisation of domestic savings and in- The NAfMA for SMEs aims to rec- vestment, and increases in the num- ognise management accounting best ber of indigenous entrepreneurs, practices among small and medium thereby increasing the use of local re- companies. Specifically, the organising sources and ensuring a more equi- committee wants to recognise SMEs, table distribution of wealth. which despite their limited capacity Due to their huge presence in the in terms of size and capital, are able economic setting of this country, the to strategically use management ac- SMEs play a critical role in Malaysia’s counting techniques as a competitive industrialisation programme, tool. To be eligible to participate in through the strengthening of both this category, these smaller compa- forward and backward industrial link- nies must be profitable in their last ages with larger firms and multina- three financial years and the annual tional corporations. It is envisioned sales turnover must not exceed RM25 that a strong SME sector could pro- million. vide an attraction factor for foreign This article, which forms Part One direct investments (FDI) in Malaysia. of a two-series write up, will basically In general, strategies to promote describe the requirements, method- the development of SMEs remain in- ology as well as the assessment crite- formal and piecemeal. Most develop-

24 ACCOUNTANTS TODAY • November 2007 NAf MA for Small and Medium Enterprises

ment plans have been formulated against the backdrop of a changing and challenging economic environment, which is mainly characterised by globalisation, market liberalisation and the continuous advancement of information and communications technology (ICT). NAfMA for SME is a step forward in recognising successful small and medium enterprises that are deliberate in finding strategic solutions to their business challenges. Through an effective utilisation of relevant management accounting tools, organisations could enhance value creation for their stakeholders. Value creation is indeed the pinnacle of management accounting evolution.

NAf MA’s Assessment Criteria In assessing management accounting practices in organisations, NAfMA for SMEs is specifically designed using an integrated approach. The successful implementation of any management accounting technique in an organisation would very much be dependent on the support it receives, plus the favourable environment surrounding the organisation itself. As such, NAfMA for SMEs is premised on eight important assessment attributes, namely Leadership, Management Accounting Information, Resource Management, Customer/ Market Focus, Partnership Management, Value Creation, Per- formance Measurement and Corporate Social Responsibility. In a nutshell, for SMEs, effective management accounting requires strong leadership support; relevant and timely information system; effective resource, market and partnership management; the utilisation of measurable performance pa- rameters and their contributions towards corporate social responsibility.

Leadership The first assessment criterion focuses on the role of leadership in inculcating a change culture within the SME organisations. These organisations are expected to have very clear visions, missions and strategic objectives. Top management’s support towards management accounting is usually shown through the creation of a special management accounting function, which is distinct from the normal financial accounting unit. Specifically, evidences of leadership’s success should be reflected from the following: Shared vision between top management and various subor- dinates. Clear communication channel throughout the organisations. Sense of belonging and commitment among employees. Two-way feedback and feed forward system being implemented throughout the organisation. Goal congruence at organisational, departmental and managerial levels. Interim review of strategic planning and organisational objectives. Effective implementation of latest information and communications technology (ICT) to improve the efficiency of management.

November 2007 • ACCOUNTANTS TODAY 25 NAf MA for Small and Medium Enterprises

Management Accounting Information “Since NAfMA for SMEs is a management accounting award, specific Since NAfMA for SMEs is a management accounting award, a specific emphasis is emphasis is given to management accounting information. This assess- given to management accounting information. This assessment criterion looks for ment criterion looks for evidence implicating accessibility, reliability, time- evidences implicating accessibility, reliabil- liness and effectiveness of management accounting information.” ity, timeliness and effectiveness of management accounting information. In most cases, crux of the assessment criteria. NAfMA described above. Upon submission of the evidences are reviewed through sighting of participants are to provide evidence on NSR, the Assessment Committee, comprising relevant reports and their respective appli- how the implementation of management qualified practitioners and academics, review cations within the organisations. accounting techniques creates value for the report and shortlist candidates for the first the company. Specifically for this criterion, site visit. In Phase Two, Groups of Assessors Resource Management value creation is seen from the 5-stage man- are assigned to different participating com- For this criterion, the assessment fo- agement accounting evolution as proposed panies for site visits. In minimising inter-rater cuses on the career plan and types of train- by IFAC. Stage 1 sees the use of manage- biases, the assessors use a NAfMA-SME ing received by both management account- ment accounting for cost determination Scoresheet Matrix to record their assessing and non-management accounting per- and cost control. Stage 2 focuses on using ments. Once the first site visit is completed sonnel. Specifically, evidences on the management accounting for planning and for all short-listed participating companies, means available for employees to contrib- decision-making. Stage 3 looks for manage- another Assessment Committee meeting is ute effectively to the company’s corporate ment accounting techniques that promote called to moderate the scorings. After lengthy and quality objectives are sought after from value added activities. Stage 4 creates value deliberations, another short-listing process is the following: through the integration of management ac- done to identify companies for a second site Opportunity to participate in teams counting techniques. Finally, Stage 5 fo- visit. Phase Three is the second site visit. For within and across functional units. cuses on strategic and risk management. this phase, the Assessment Committee ap- Empowering employees to make deci- points a group of five to six assessors to evalu- sions or suggestions in relation to man- Business Results ate all final listing candidates. Upon comple- agement accounting. Management accounting techniques are tion of the second site visit, another modera- Evaluation system to assess the extent and deemed to be useful and effective if their tion meeting is held. Companies are then effectiveness of employee involvement. utilisations are reflected in the form of ranked based on their scores. Proposals are Incentives provided to employees for favourable business results. Favourable busi- put forward for the judges to make a final de- successful implementation of manage- ness results are measured in many ways, cision. All in all, the assessment process is ment accounting techniques. including percentage of cost saving, percent- very meticulous and detailed. Finalist partici- age increase in sales, percentage reduction pants are honoured at a grand dinner and win- Customer/Market Focus of labour turnover, increase in market share ners are accordingly announced and awarded Customer/Market focus describes how the and reduction in absenteeism. during the event. SME determines its current and future customer requirements and expectation. Specific Corporate Social Responsibility (CSR) Types of Awards methods of customer analysis may include con- CSR is a concept that suggests that com- Basically, there are three categories of ducting a customer satisfaction survey, after- mercial corporations have a duty of care to all awards, namely Practice Solution, Best Prac- sales service, analysis of customers’ complaints/ of their stakeholders in all aspects of their tice and Excellence. The Practice Solution feedback and benchmarking against the indus- business operations. A company’s stakehold- Award recognises a company that uses at try norm. This criterion further describes how ers are all those who are influenced by, or can least one management accounting technique support services within the company are geared influence, a business’s decisions and actions. effectively and successfully. Effectiveness towards meeting customers’ requirements. These can include (but are not limited to): and success are implied through improved employees, customers, suppliers, community performance, better productivity or enhance- Partnership Management organisations, subsidiaries and affiliates, joint ment of efficiency. The Best Practice Award This criterion describes how effectively venture partners, local neighbourhoods, in- recognises effective utilisation of many man- the SME manages its relationships with its vestors, and shareholders. agement accounting practices within the partners, namely the government, suppli- organisation. Preferably, these techniques ers, employees, regulators and the commu- Assessment Methodology represent all stages of the management ac- nity at large. The NAfMA-SME assessment process is counting evolution. As the term is rightfully divided into three distinct but related phases. defined, the Excellence Award portrays a Value Creation Phase One sees the submission of NAfMA market leader to be benchmarked by others. As far as the NAfMA-SME award is con- Submission Report (NSR) by participating The Excellence Award recipient is also an cerned, value creation represents the main SMEs. The NSR is based on the eight criteria international player to be reckoned with. AT

26 ACCOUNTANTS TODAY • November 2007 MANAGEMENT & ACCOUNTING

Management Accounting Best Practices in SMEs A Case Study of KEU Control Engineering Sdn Bhd Normah Haji Omar, Suzana Sulaiman and Ibrahim Kamal Abd Rahman

EU Control Engineering Sdn It is important in industrial automation Management Accounting within KEU Bhd was founded in 1991. to improve quality, efficiency and produc- Control Engineering Sdn Bhd KEU provides total solutions tivity with the appropriate application of KEU adopts Information Communica- K to customers with sales and technology. It is Malaysia’s vision to take tions Technology (ICT) as its information engineering services for a broad line of in- a technological leap in manufacturing ca- and communication tool. The extensive use dustrial automation products. KEU is ac- pability and be more competitive. In re- of ICT has earned it recognition in the tively involved in engineer- DIGI ICT Adoption Award — ing design, fabrication, as- 2003 SMI Award. The use of sembly, integration, instal- ICT has smoothened all com- lation, commissioning and munication flow between servicing, especially in in- management and staff. As a dustrial automation system result, a structured report- development, implementa- ing system is practiced tion and optimisation. KEU within KEU. These include specialises in manual, semi- Minutes of Meetings (MoM), automated and fully auto- Monthly Work Schedules mated equipment, custom (MWS), Project Log Sheets made equipment, jigs and (PLS), Management Re- fixtures, robotic systems, ports, Management Audits, welding systems and com- Integrated Management Sys- puter-based control systems (IMS) Reviews, Review tems. Its design philosophy Inputs, Review Outputs and emphasises hi-tech ma- KPI reports. chines and assembly lines, It has been able to adopt flexible automation and the several management ac- use of computer technolo- counting practices, espe- gies. KEU has successfully cially with the aggressive use completed projects in dif- of ICT. In addition full sup- ferent industries such as port and commitment at all Automotive, Agriculture, times have been received Metal, Paper, Rubber, from the top management in Food, Furniture, Electrical the application of manage- & Electronics, with spe- ment accounting concepts cialisation in Automotive. and techniques. These in- Since 1996, KEU has es- clude management account- tablished technical collaboration relation- sponse to this, part of KEU’s mission in- ing concepts and techniques such as: ships with renowned companies from cludes adopting and developing the lat- Financial statements and ratio analysis South Korea, Sweden, Taiwan, India and est technology and being dynamic, pro- Budgeting and budgetary control Italy in industrial automation specialising active, innovative and competitive. Satis- Project costing in robotic systems, Jigs and Conveyor fying customer needs is also part of the Cost-Benefit-Analysis Systems. mission. Cost Control and Cost Management

November 2007 • ACCOUNTANTS TODAY 27 Management Accounting Best Practices in SMEs

Economic order quantity and inventory has created satisfaction among KEU’s years. Appropriate training programmes modelling staff. were designed to comply with the Quality control circle Business Planning company’s objective of “70 per cent atten- Total Quality Management Business planning has been successfully dance based on annual training plan.” Ac- Integrated Management System implemented by KEU as clear directions cording to an analysis for the first half of Strategic Cost Management have been laid down for by all members. 2006, KEU achieved 89 per cent atten- Strategic Management Accounting Through well structured business plan- dance, 95 per cent training evaluation of Benchmarking ning, KEU managed to improve its gross each training and 95 per cent training Productivity Analysis profit margin from 14.7 to 20.9 per cent in achieved. The effective training program Enterprise Risk Management 2003 and 2004, respectively. has upgraded every staff skill. The head Six-Sigma Management Accounting of each department will analyse and pro- Business Strategic Planning Statistical Analysis vide the training analysis to the Human The management accounting informa- Resource department. Accordingly the Successful Management tion in KEU is analysed according to its Human Resource department will gather Accounting Practices turnover, cost of sales, selling, marketing all the data before the Annual Training Plan The management accounting practices and administrative overheads, finance (ATP) is prepared. The ATP includes all that have been successfully implemented costs and status. Turnover is analysed ac- details of training for the whole organisa- by KEU include project costing, budget- cording to categories which include types tion, from the Managing Director to the ing and budgetary control, the Economic of products, customers and location. Sta- general workers. Every aspect of training Order Quantity and inventory modelling, tistical analysis is conducted on all the sell- was planned and this included training on business planning and management ac- ing, marketing and administrative technical, design, safety, quality manage- counting statistical analysis. overheads. Ratio and variance analysis ment, motivation and document manage- Project Costing were also calculated and prepared for ment skills. The staff performance is moni- KEU has managed to reduce cost of its each of these overheads. tored and re-train programs were sug- projects and products, material wastage, Statistical analysis has been success- gested when necessary. labour cost and eventually increase pro- fully implemented throughout KEU. This KEU established its Quality Control ductivity. This is possible through better is supported by the increased numbers of Circle (QCC) in year 2005 to assist in qual- negotiation skills with customers and sup- monthly reports submitted to manage- ity improvement within the organisation. pliers. During the financial year ended 31 ment, which include the sales perfor- The philosophy of QCC is based on the December 2004, by implementing proper mance analysis, material purchased analy- concepts of participative management and project costing KEU successfully sis, production analysis, overhead analy- humanistic management. Humanistic achieved the target of 10 per cent reduc- sis and staff attendance analysis. management refers to management which tion in project material through reduction Statistical analysis implementation has gives importance to people and their feel- in material and product waste, saving ap- also successfully increased the staff atten- ings. This is because people are consid- proximately RM184,000, which is about dance performance, reduced the growth ered the most valuable asset of KEU. Par- two per cent of the total cost of material of medical expenses incurred and in- ticipative management refers to the prac- purchases. creased the productivity of the overall tice of giving every worker regardless of Budgeting and Budgetary Control staff performance. It is through statisti- his/her position in the organisation the KEU has managed to control its overhead cal control that KEU has successfully opportunity to develop through participat- within 15% for three consecutive years, 2002 achieved 90% of the planned training ating in the problem-solving process that to 2004. As a result, KEU was able to chan- tendance, eventually leading to increased may lead to quality and productivity im- nel the available funds to be invested in re- productivity and staff satisfaction. provement. search and development projects. Since the QCC implementation, there Economic Order Quantity (EOQ) Other Best Practices have been savings in paper, electricity, car- The EOQ and inventory modelling has Resource Management tridges and scraps. It is the intention of been successfully implemented within The manpower of KEU increased from KEU to upgrade from QCC to ICC by KEU. Proper planning on the lead time 1 in 1991 to 162 in 2006. KEU believes that 2007. and ordering the correct quantities of people are part of its asset. Continuous Customer Focus materials required have reduced the stor- staff development is its mission and staff KEU promises to implement the best age cost and handling fees on stocks with- achievement is its pride. KEU enhances Quality, Cost, Delivery, Safety and Mo- out jeopardising the delivery of goods on trustworthiness in human management rale (QCDSM). KEU is open to feedback time to customers. The EOQ was able to through effective communication and from customers. The feedback is gath- be maintained at not more than 1.5 mil- plan implementation. Accordingly, KEU ered through the ‘Customer Satisfaction lion and at the same time meet urgent re- has achieved one per cent staff turnover Survey Form’ and ‘Customer Complaints quest from customers. Timely delivery and steady expansion of staff over the Feedback Form.’ KEU conducts an Inte-

28 ACCOUNTANTS TODAY • November 2007 Management Accounting Best Practices in SMEs

grated Management System Review Conclusion ings and increased productivity and gross (IMSR) meeting once in six months to NAfMA Best Practice 2005 included a profit. They have also made reporting easy, review its customer satisfaction. The dis- framework for small and medium compa- increased staff attendance and reduced cussion includes countermeasures of nies (SMEs). Participating SMEs were as- medical expenses. Furthermore, NAfMA providing the best service to customers. sessed on criteria which include manage- Best Practice allows KEU Control to high- In addition, there are weekly Business ment accounting information, leadership, light its strengths in responding to chal- Operational Meetings and monthly Man- resource management, customer/market lenges and performing self-assessment. agement Committee Meetings. KEU focus, partnership management, value cre- The self-assessment allows KEU Control to Control was awarded the Excellence Ser- ation, business results/performance mea- identify processes or tools that need to be vice Quality at the 3rd Asia Pacific/Malay- surement and corporate social responsibil- improved and to continuously create value sia e-Entrepreneur Excellence 2004 and ity. NAfMA initiatives have produced a through new innovation. SMB Excellence Product/Service Award practical and proven management account- In summary, NAfMA provides a platform in 2005. ing framework that can lead to superior for SMEs to share and promote the use of KEU Control’s staff have been trained value creation and business performance. management accounting techniques in en- for customer orientation in courses that The use of management accounting tech- hancing cost management, benchmark teach them to understand customer needs niques has reduced cost wastage and even- performance, revenue growth and profit- and by putting them on 24 - hour standby tually increased profitability in KEU Con- ability. It also exposes other companies to to serve customers. Previous customer sat- trol Engineering Sdn Bhd. new management accounting techniques isfaction analysis records show that the Management accounting tools such as and tools and how to be more competitive majority of KEU Control customers are project costing, budgeting and budgetary in today’s uncertain environment. AT satisfied with the products and services control, the Economic Order Quantity and provided. It is KEU Control’s practice to inventory modelling, business planning and continually improve its products and ser- management accounting statistical analysis The authors are from the CIMA-UiTM Asian Management Accounting Research Centre vices to achieve 100 per cent customer re- have helped KEU Control to implement its (AMARC). To contact them please e-mail: quirements and expectations. continual improvement through cost sav- [email protected]

November 2007 • ACCOUNTANTS TODAY 29 MANAGEMENT & ACCOUNTING

Value Drivers What Makes One Company More Valuable than Another? Patrick Ow

The most successful and profitable businesses are those that respond to the needs of their stakeholders. Unfortunately, creating a scorecard with meaningful and manageable measures can be a challenge for any organisation. The problem for senior management is to create meaningful and objective measures that are relevant to the business agenda.

magine a business. Sales are strong, It also aims to help you focus your worth of commodities, services, assets, but not growing as fast as you’d like. business’s efforts on creating value where or work. It is closely linked with how we Employee morale is moderate and it is most relevant to your stakeholders. In can measure the worth of the service Iseveral senior employees have left. other words, it helps you to deliver what provided to our customers or citizens or You have strong relationships with suppli- your customers and your suppliers want. beneficiaries. It helps us understand why ers and good customer loyalty, but recent From an economics perspective, value your customers buy from you or use your technological changes in your industry is the market worth or an estimated service. have left you wor- For private com- ried that your companies this value is petitors are going to Diagram 1 Value Driver Tree generally defined eat into your mar- as shareholder … Increase Maintain Customer Base ket share. Revenue … value, whereas for So, where do you (Growth … public sector agen- Increase Number of Customers start? And which Drivers) … As the value cies, this value is re- … driver tree areas do you ad- Increase Profit Lower Manufacturing Cost ferred to as public Increase … moves further dress first? Shareholder Margins value. Public value, (Financial … to the right, Value Lower Distribution Cost The Value Driver Drivers) … drivers become a concept invented increasingly Tree Analysis may … by Harvard Profes- Increase Increase Process/Operating Efficiency unique to the be an answer. It Efficiency … individual sor Mark Moore in (Efficiency … organisation identifies the appro- Increase Financial Efficiency the 1990s, is in- Drivers) … priate performance … creasingly being ac- Increase Human Capital Efficiency measures for senior … knowledged by management and Generic Value Drivers for Organisational-Specific Operational governments operational teams. Most Organisations Value Drivers (sample) around the world as By establishing both a substantial cause and effect linkages between various measures, a “… a Value Driver Tree can help define action plans, Value Driver Tree can help define action plans, responsibilities and priorities for responsibilities and priorities for each level of the organisation and each level of the organisation and management teams. management teams.”

30 ACCOUNTANTS TODAY • November 2007 Value Drivers: What Makes One Company More Valuable than Another?

means of measuring performance and a key By examining and defining paths to value original offering from Kaplan and Norton, driver of organisational performance. creation using the Value Driver Tree, these quadrants reflected the following The primary goal for private companies organisations can clearly identify and un- perspectives and implications of the strat- is to enrich its shareholders (owners) by derstand responsibilities by function and egy: paying dividends and/or causing the stock level within the organisation. Financial; price to increase. Compared to public sec- Specifically, stakeholders must address Customer; tor agencies, we measure their ability to two key questions: Internal business processes; and create value for citizens or their beneficia- What factors have significant impact on Organisational learning and growth. ries over time. the value of the firm? Therefore, there are two easy ways to Private company management has an What factors can we influence or man- identify value drivers: ongoing mandate to maximise share- age? Value drivers have a significant value holder returns. But while maximising These perspectives can also be linked to 1 impact to the organisation; and shareholder value is an important corpo- the balanced scorecard’s four perspectives. rate objective, it is not specific and ac- As such, the value driver tree analysis is They are controllable by management. countable enough for management, who often used to ‘balance’ the balanced 2 For example, commodity inputs may be must also know which factors most influ- scorecard in terms of the appropriateness important to your business, but since ence shareholder value, and they are not easily con- which factors can be most trolled, they may not de- Diagram 2 Value Driver Tree for Petroleum Marketing Company easily put into effect. We call serve significant manage- these factors value drivers Refinery Production ment attention. and these drivers are the pri- Product Cost An effective Value mary focus of companies Product Import Driver Tree Analysis can that succeed in maximising Depot Cost effectively map out sets of shareholder value or public Distribution measures and supporting value. Trucking Cost information needed to ob- Identifying and managing jectively track and improve Increase Direct Selling Cost value drivers help managers performance indicators Operating Regional Offices to focus their attention on Margin Sales Representatives flowing throughout the key activities, those that will organisation. Salaries have the greatest impact on As the Value Driver Tree Advertising their value. This focus en- Bonus/Overtime moves further to the right ables management to trans- (as shown in Diagram 2), late broad goals of value cre- Maintenance Repair/Maintenance the value drivers become ation into the specific and increasingly unique and measurable actions most of the measures used, focusing on what customisable to the individual likely to deliver that value over time. really matters. organisation’s operating context or envi- There are three categories of value driv- This ‘balanced’ scorecard has been used ronment. ers for the private sector: successfully by organisations (public, pri- In other words, by identifying the key Growth Drivers — Involves increasing vate and not-for-profit) to realise and inte- factors and, from those, the ones that can revenue from a financial perspective grate the strategic contribution of all rel- be most significantly affected by actions, and/or expanding the customer base evant organisational value drivers for two an organisation can maximise the positive from a customer perspective. key reasons: impact of improvement initiatives and ac- Financial Drivers — Involves increasing First, it helps to ensure consistency and curately track the effectiveness of those ini- profit margins or managing cost from a alignment between the non-financial and tiatives. financial perspective. the financial measures, helping to facili- Using another example, the Value Driver Tree for a petroleum marketing company Efficiency Drivers — Involves increasing tate the alignment of the measures and can be represented as in Diagram 2. process efficiencies from an internal pro- strategy. Public value is the equivalent of share- cess perspective, increasing human capi- Second, it helps to identify and measure holder value in public sector management. tal effectiveness from a people perspec- the specific value drivers that underpin Traditionally, those who evaluate the per- tive and/or increasing financial effi- performance. This allows managers to formance of public service agencies have ciency from a financial perspective. test their hypotheses on what is driving focused on outputs, such as student- organisational outcomes. These categories of value drivers can be teacher ratios or arrest rates or numbers represented in the Value Driver Tree (Dia- The scorecard translates vision and strat- of hospital beds, rather than on the actual gram 1). egy into four notional quadrants. In the long-term difference those public sector

November 2007 • ACCOUNTANTS TODAY 31 Value Drivers: What Makes One Company More Valuable than Another?

agencies make in the lives of the people ticipation, preferably from the CEO, to en- organisation, and not confined to just one they serve through improved learning, courage open discussions and prevent the department. public safety or health. These are out- meetings from becoming a blaming con- comes, one of the two essential compo- test. Prioritise investments and initiatives — nents of public value, apart from cost ef- Once these value drivers have been iden- The sensitivity and manageability analy- fectiveness. tified, the team should nominate and as- sis enable organisations to define priori- Thus, to create public value, public sec- sign one owner to each value driver who ties and identify the high impact value tor agencies must translate resources into has the most influence on managing its drivers. These value drivers will then pro- real and beneficial outcomes for citizens, outcome. If the value driver is dependent vide an objective basis for future invest- service users and taxpayers. on multiple areas, targets should be nego- ments and initiatives. In the private sector, corporate perfor- tiated between the impacted organisations. mance is measured rather straightfor- For example, the responsibility for ‘dis- Highlight redundancies and gaps in in- wardly and objectively (but not exclu- appointment’ could be assigned to the cus- formation flows — Since many key value sively) in financial profit or loss. Instead of tomer service manager with targets for HR, drivers cross multiple functions, the pro- profit or loss, public agencies target some- marketing and IT. To decrease ‘disappoint- cess can identify issues that would not thing much harder to pin normally have been apparent. down. It is the outcome For example, existing cus- Diagram 3 Value Driver Tree for a Public Agency that economists call “pub- tomer databases may not be lic good” that has direct linked between departments Optimise User Experience benefits created for ser- and require separate updates vice recipients, the wider of the same information. Outcomes Optimise Impact on Local Community community and the tax- Increase payers. All outcomes and Public Optimise Benefit to Wider Population Serve as a comprehensive Value associated measures are Cost training vehicle for new em- weighted according to Effectiveness ployees at all levels — New the agency’s priorities. employees can use the value Public value is also Generic Value Drivers for Agency-Specific driver tree to better under- about the cost-effective Most Agencies Outcome Drivers (sample) stand what drives the busi- application of public ness and the factors that im- money to improve social pact its growth. outcomes. Cost effectiveness is a return-on- ment,’ customer service reps may need Value mapping your business begins and investment calculation that is a ratio of out- skills training and better tools. Targets can ends with stakeholders, either customers comes generated to the amount of resources be negotiated with HR for more stringent or the public. Everything your business consumed in producing these outcomes. standards for screening and hiring of ac- does should flow from their needs and aim Therefore, a cost effective public sector count reps. IT, meanwhile, may need to to deliver what they want. For this to hap- agency optimises its use of budgeted ex- raise service levels to allow account reps pen, performance measures have to be penditures and agency assets (opportunity faster and easier access to relevant and up- closely tied to the activities and assets that cost of capital) in order to generate the to-date customer information. add value. The different stages of value maximum level of outcomes per resource Objective third parties can facilitate the mapping are: employed. It is about maximising a process and prevent any individual group Assessing value needs; weighted basket of outcomes generated in member from dominating and limiting the the most cost effective manner. scope of discussions. Specifically, a third Strategy and objectives — review, map A Value Driver Tree for a public agency party can challenge assumptions and ex- and integrate; is shown in Diagram 3. plore politically sensitive topics without Predicting value outcomes; Generally, regardless of whether it is a damaging relationships. Assessing value drivers; private or public sector organisation, these The Value Driver Tree Analysis provides Mapping value drivers; value drivers should be developed by a the following benefits: cross-functional team. Each team member Refining and developing measures; should represent an area of functional ex- Build consensus across multiple disci- Communicating and targeting energy; pertise, such as finance, marketing, sales, plines about what’s important — Since and operations, human resources, information the value driver tree is independent of Assessing and reporting value out- technology, etc. A typical group size for existing hierarchical structures, the comes. AT most organisations ranges from eight to methodology enables organisations to twelve individuals. Throughout this pro- identify and document issues that are The author can be contacted at patrickow@ cess, there should be active executive par- key to the success of the entire gmail.com.

32 ACCOUNTANTS TODAY • November 2007 HUMAN CAPITAL STRATEGY

Human Capital Risk Significant Threat to Companies:

Human capital risk such as skills shortages, succession issues and the loss of key personnel, are some of the areas that provide the biggest challenge to risk managers.

hey rank higher than threats third each from Asia and Australasia, Pacific. “Yet few respondents think that from reputational risk, informa- North America and Western Europe. The they are managing these risks effectively. tion technology risk, political findings show that human capital risk such In Asia Pacific, a growth region for many risk and regulatory risk, sug- as skills shortages, succession issues and companies, ACE is cognisant of the war on T talent and the need to position ourselves gests a new survey conducted by the the loss of key personnel, are seen by re- Economist Intelligence Unit (EIU). spondents as being more challenging to as an employer of choice, not just from a The sponsored survey report Best prac- manage than threats from reputational remuneration perspective, but also in hav- tice in risk management — a function comes risk, information technology risk, political ing an enlightened understanding of hu- of age concludes that international risk risk and regulatory risk. man capital development and work-life bal- managers see human capital risk as being ance.” the most significant threat facing their glo- “The survey shows that human Respondents identify strong culture and bal business operations. capital risks have emerged as awareness of risk throughout the Sixty two percent of the respondents organisation as the key determinant of suc- from Asia acknowledged this risk as a sig- one of the most challenging cess. Companies are creating a C-level manager for risk. The practice of appoint- nificant threat to their operations. How- companies now face.” ever, only 32 per cent of the survey respon- ing a Chief Risk Officer (CRO) to carry dents from Asia said that they manage the John Bassetto, President & CEO, responsibility for developing and imple- human capital risk effectively. The only ar- ACE Asia Pacific menting the risk management framework eas where they felt less confident were Among the survey’s other findings: Cor- is reaching maturity, with most of those risks associated with terrorism and climate porate stakeholders are demanding im- companies that favour the approach hav- change. provement to risk management. Efforts in ing already adopted it. The approach is The survey report, sponsored by inter- risk management are being driven by in- most popular in the financial sector, where national insurer ACE Group of Companies, ternal and external factors. The board is two-thirds of firms have appointed, or plan assesses how effectively companies think seen as the most important internal driver to appoint, a CRO. they are managing these risks and how for strengthening risk management, while An increase in investment is predicted. they are changing their approach to risk the main external drivers are the demands Firms of all sizes and in all areas of the management in order to keep pace with of regulators and investors. Risk permeates world are planning to increase investment developments in the ever-evolving busi- the organisation. The risk management in most areas of risk management over the ness environment. function has evolved to become a core area coming years, suggesting that this busi- In February 2007, the EIU surveyed 218 of business practice, driven by the board ness discipline, although evolving rapidly, executives around the world about their but embedded at every level of the will continue to expand and deepen its approach to risk management and their organisation. reach within organisations. perception of the key challenges and op- “The survey shows that human capital ACE Group is a global leader in insur- portunities facing the function. risks have emerged as one of the most ance and reinsurance serving a diverse Respondents represent a wide range of challenging companies now face,” said group of clients and operates in more than industries and regions, with roughly one- John Bassetto, President & CEO ACE Asia 50 countries, including Malaysia. AT

November 2007 • ACCOUNTANTS TODAY 33 FINANCE & ACCOUNTING

Forward-Looking Finance Robert Shaw Robert Shaw explains why the next generation of accountants need to be adept in knowledge management, forecasting and optimisation techniques.

t’s a universal — and valid — coming used today in real companies. Although ing and optimisation. plaint that executives give insuffi- it’s practical rather than theoretical, the Knowledge management involves gath- cient thought to the future. They article has a thesis: that accounting prac- ering and organising data that aren’t stored Ishould of course spend more time tices must change to become more for- in the company’s financial accounting, en- and effort on doing this, but today’s tasks ward-looking. terprise resource planning and customer take up all of their time. Managers feel From inside the finance department, it’s relationship management systems. Look- managed by whatever lands in their in- not easy to see where your company’s cash ing at the graph showing the sales figures boxes and they get trapped on a treadmill comes from and even harder to know for a grocery product consumed mostly in of Powerpoint presentations. This daily where it will come from in the future. the summer (Panel 1), it would seem that grind is institutionalised by the backward- To be forward-looking you must answer growth is slowing. It’s crucial for the board looking perspective to know whether of traditional account- Panel 1 Looking Forward from Past Result Trends this is a real slowing practices. down or simply Sales But all that’s set to the effect of two change as the latest consecutive cool financial reporting summers, 3% rules make forward- 7% because the issue looking statements How? affects production 11% (entrepreneurism) mandatory. The in- capacity. But vestment community Why? weather data are (insight) Where? wants company direc- (foresight not maintained on tors to take their eyes and risks) the company’s off the rearview mir- systems. It has to ror and look at the be obtained from road ahead. It wants 2004 2005 2006 2007 2008 2009 the Meteorologi- to be confident in cal Office. The up- their ability to assess where cash will come the following three questions: ward spikes on the graph reflect the results from tomorrow and not merely where it Why do our result graphs wiggle up and of sales promotions, but detailed promo- went yesterday. The effect on management down, what’s driving the underlying tional information resides in the sales de- teams will be profound in terms of perfor- growth trends and is our growth slow- partment, while audit data from market mance management as well as disclosure. ing down or accelerating? Most of the research firms are held by the marketing Forward-looking finance isn’t only about more extreme wiggles are driven by rev- team. None of the relevant data are kept the annual report or investor briefings; it’s enue volatility and uncertainty. by finance. also about the commercial abilities of di- Knowledge management also involves Where will results go if we continue ex- rectors and their executive management discovering the laws of cause and effect actly as we have done in the past? teams, and the skills and methods they will that underlie the movements on the graph. need to adopt. How will we improve on this baseline Econometric analysis is the main tech- This article draws from my experiences projection? nique here. One of its key benefits is that as a consultant to businesses of all kinds These questions can be translated into it allows you to separate the effects of mul- and sizes for a good many years. Every the three main tasks of forward-looking fi- tiple factors into their component parts. technique in it has been tested and is be- nance: knowledge management, forecast- For example, the effects of daytime tem-

34 ACCOUNTANTS TODAY • November 2007 Forward-Looking Finance

perature, hours of sunshine, advertising, producing vacuum cleaners and air condi- to help new talent stay motivated. The stan- promotions, price and distribution can be tioners, focusing instead on DVD players dard criteria for career advancement disentangled. Econometric analysis can be and hi-tech televisions. The result was sev- should be changed to reflect the tested using several methods to ensure eral consecutive years of growth and after- organisation’s new forward-looking ethos that it is robust. It can also be used to tax profits of 13 per cent, compared with and the HR department should make sure project into the future on the basis of past Sony’s two per cent. via the appraisal and review process that advertising, pricing and promotions. Forward-looking finance requires existing managers are using their new Forecasting is the second main task. All change and Panel 2 shows a simple frame- skills. organisations use short-range forecasts of work to help you when considering which Keep. Retaining the organisation’s ex- some kind, but most make do with rather of the following four types of changes are isting commercially astute talent is essen- primitive methods, if any, when it comes suitable: tial. Retention problems tend to arise at two to long-range forecasting. Even short- Adopt. Adopting new techniques means points. The first is following induction, range forecasts can be rather basic and recruiting the necessary fresh talent. early training and one or two assignments, they often don’t take proper account of the There are two extreme approaches: the when the individual has acquired greater factors that affect sales but longer-range “agricultural” method which involves ac- value on the open market and will be look- trends in the data are seldom measured quiring seed material and nurturing it in a ing to exploit this. The second is after they effectively. Using econometrics, the fore- supportive environment while weeding out have risen to a more senior level, when caster can tell much more confidently the those that don’t take. Then there’s the so- they become targets for headhunters. degree of the slowdown in sales (and the called purchasing approach, which in- effects of previous cool summers in giving Avoid. Two fashions that I’d recommend volves headhunting ready-made talent. the impression of a slowdown) and so avoiding are the balanced scorecard and Both approaches pose challenges. Head- make more robust investment plans in the Beyond Budgeting movement. The the- hunters do not have a big supply of experi- growth capacity. sis of Beyond Budgeting is that budgeting Optimisation is the third main is backward-looking and task. Investment allocation Panel 2 Current Practices and Good Practices should, therefore, be aban- across yesterday’s, today’s and doned. But the evidence for this Best Practice Not Best Practice tomorrow’s breadwinners is an conclusion is weak. Keeping the emotional business and the re- Current Practice Keep Improve budgeting process is a viable al- sulting decisions are far from ternative as long as improve- optimal. Investments in mana- Not Current Practice Adopt Avoid ments are made to make it for- gerial ego and pet projects are ward-looking. This means that all too common. Everyone in budgeting must adopt the meth- the business loves yesterday’s breadwin- ods of econometrics, forecasting models enced econometricians, forecasters and ners: they are the “product that built the and optimisation within its remit; they are optimisation specialists from which to company” but they are kept in the market not merely sideshows. The balanced choose, while it typically takes five years by price cuts and high-pressure selling. scorecard also claims to overcome the limi- or more for home grown recruits to be- Today’s breadwinners account for substan- tations of traditional budgeting but I know come effective at these techniques. tial sales volume, and often large net rev- many organisations that have adopted and “Wanted: commercially astute executive” enue contribution. They may still have then abandoned the method. One of many is becoming an increasingly common type some growth to come, but only at the cost reasons for this has been that non-finan- of job advert, as firms compete to trawl a of massive marketing, sales and service cial indicators such as customer satisfac- limited pool of talent. A cheaper and more resources, which may be better used else- tion and brand preference turn out to be effective hybrid approach is to recruit tal- where. Tomorrow’s breadwinners are lag indicators, contrary to the claims of the ent internally and then bring in consultants small, unprofitable today and in competi- scorecard’s creators. Noise in the data to help accelerate their development. tion for resources with pet projects and makes the scorecard unreliable, particu- investments in managerial ego. Improve. It’s important to ensure that larly when small market research samples Optimisation techniques bring logic and talented people stay motivated and work are used, so I would advise against using objectivity to an irrational and emotional effectively with others. Many factors can this approach to assessing performance, task. Companies such as Samsung have affect their motivation, but one that stands too. AT been using them across their global mar- out is the attitude of their colleagues. Ex- Robert Shaw is a director of the consulting firm kets to reallocate resources and maximise isting managers can do enormous harm if the Value Based Marketing Forum and visiting future cash flows. After an optimisation they trivialise the newcomers’ skills, so it’s professor at Cass Business School. This article study in 2000, Samsung took budgets away important to keep a watchful eye on the is contributed by CIMA (The Chartered Insti- tute of Management Accountants) and it first from North America and allocated them to “old guard” and to update their skills as appeared in Financial Management, CIMA’s Europe and China. It also moved away from well. Mentoring and coaching can be used monthly magazine for its members.

November 2007 • ACCOUNTANTS TODAY 35 ISLAMIC FINANCE

Islamic Finance Growing into a Sizeable Alternative Financial Management System Kenneth Wong The Islamic finance industry is here to stay, notes a recent KPMG report entitled “Growth and Diversification in Islamic Finance.”

ooking at the recent develop- of three decades, Islamic finance has been “Compared to the conventional financial ments in the financial market, transformed from a peripheral activity to a system, it is relatively young. Industry some may deem that as an un- sizeable alternative financial management practitioners are constantly learning from derstatement. Indeed, Islamic system. the experience of the conventional system, L but the learning curve re- finance has been making news in Malaysia, and a mains steep. couple of key financial juris- “There is a real potential dictions in the past few for expansion in retail bank- years. ing and consumer finance, In fact, a cursory glance especially in populous Mus- at the activities driven by lim countries. Non-tradi- Bank Negara Malaysia un- tional markets are also ex- derscores the rapid ad- pected to become increas- vances of Islamic finance, at ingly important, as is the least for Malaysia. A quick provision of Islamic finan- check on the major cial products to non-Muslim speeches of BNM Gover- customers. The challenge nor Tan Sri Dr. Zeti Akhtar here is to achieve a suitable Aziz, will reveal the pre- level of support from the dominance of the Islamic fi- governments and regula- nance theme. tors in these markets to- “Sukuk, the Islamic fi- wards the sector,” it says. nance world’s equivalent of The report suggests that a traditional bond, has the growth and diversifica- taken the Islamic finance tion of Islamic finance, industry by storm over the along with the geopolitical past two years, with most of environment in which it op- the origination in Malaysia erates, means that it would and the GCC (Gulf Coop- be unthinkable for the glo- eration Council) countries,” bal Islamic finance industry notes the KPMG report. “to go it alone.” The international study It notes that institutions concludes that in the space such as the US Treasury,

36 ACCOUNTANTS TODAY • November 2007 Islamic Finance – Growing into a Sizeable Alternative Financial Management System: KPMG Report

the UK Treasury, the International Mon- Islamic system operates side-by-side with ued at about US$36 billion, or 48 per cent etary Fund, the World Bank, and the Basel the conventional system, cooperating but of the total corporate bond issuance in Ma- Committee of the Bank of International not interacting; or the Islamisation of the laysia. This makes Malaysia home to Asia’s Settlements, are all engaging with the sec- banking system as in Iran, Pakistan and second largest private debt securities mar- tor in an attempt to “demystify” it and to Sudan. ket, including the conventional. promote global and industry best practice “The latter has to a large extent been The KPMG report further notes that Is- through the introduction of universal pru- discredited because of the fundamental lamic finance is also on the rise in new mar- dential and supervision standards. anomalies that persist, especially in deal- kets such as Syria, Lebanon, the UK, Tur- “In addition, with many global banking ing with the correspondent banking rela- key and Canada. In the UK, it mentions two majors entering the market, there is a real tions of the Islamic banks. Sudan, Iran and new Islamic banking licence applications impetus in the West to promote the orderly Pakistan have all introduced exceptions to are currently being considered by the Fi- development of the sector,” it says. the rule allowing Islamic banks to engage nancial Services Authority (FSA), following Muslim countries also want Islamic fi- in interest-based banking to accommodate the authorisation in the past three years of nance to be part of the global financial sys- these relationships out of necessity. the Islamic Bank of Britain and the Euro- tem, and are keen to adopt many of the “Conversely, many GCC countries effec- pean Islamic Investment Bank. more innovative practices and products as tively follow a de facto dual banking model, “Further, the recently proposed changes long as they comply with the principles of which many bankers including those inter- to UK tax law should help to remove the Fiqh Al-Muamalat (Islamic law relating to viewed stress is the model to emulate,” the tax disadvantage which UK Sukuk issuance financial transactions), the report says. report says. would have previously suffered. UK Sukuk “On these principles there can be no issuance is now looking like a valid financ- compromise; otherwise the very ethos and Rapid development ing option to be explored by businesses raison d’etre of faith-based Islamic financial Looking at the big picture, the KPMG which want to be Shariah compliant as well management would be undermined. report says the contemporary Islamic fi- as by businesses which want to diversify “As such, regulators such as Dr. Zeti nance industry is now in its fourth decade their investor base or benefit from the on- Akhtar Aziz, Governor of Bank Negara and, during that period, has developed ex- going infrastructure investments within Malaysia, see much greater convergence tremely rapidly. In the past few years, over- the Middle East. of Islamic finance with the global financial all market growth has been estimated at “More significantly these tax changes system as a niche alternative financing sec- between 15 and 20 per cent annually, al- help to signify that Islamic finance can play tor,” it says. though individual Islamic banks have re- an important role in western economies. Indeed, the Malaysian authorities have ported even faster growth. It gives the ex- The changes in the UK are very likely to placed great importance and urgency in ample of Arcapita Bank in Bahrain, which be replicated in other countries, thereby putting in place key regulatory frameworks in 2006 reported year-on-year balance creating an enabling framework for the for the smooth expansion of Islamic fi- sheet growth nearer to 40 per cent. Today, rapid global development of Islamic finance. They have also kept the pace for the the sector has estimated assets under man- nance,” it says. required infrastructure. One key event was agement of US$500 billion. the launch of the Malaysia International Is- The report adds that its market dyna- Conclusion lamic Financial Centre (MIFC) in August mism has been felt in both the traditional As Islamic finance continues its expan- 2006. The centre provides an environment Islamic finance centres and a number of sion and diversification into new markets to conduct Islamic financial services in for- other markets. Quoting statistics from and products, KPMG suggests that there eign currencies from anywhere in Malay- Malaysia’s central bank, it says the num- is a real impetus to understand more sia. Then, in Malaysia’s national budget for ber of Islamic bank branches in Malaysia clearly how it can fit into the global bank- 2007, the government announced substan- increased from 126 in 2004 to 766 in 2005. ing sector. tial tax incentives as a boost to the Islamic Elsewhere, it adds, new Islamic financial “As our interviewees indicate, there is banking and takaful industry, including a institutions (IFIs) are being established a strong appetite for growth and diversi- 10-year tax exemption for the income of Is- rapidly in the industry’s traditional markets fication both among regional Islamic lamic banks and takaful companies derived in the GCC countries. banks and global majors. At present, in international currencies. Indeed, as mentioned earlier, the Islamic however, there remain a number of bar- The KPMG report made key mention of finance landscape has seen some tremen- riers to overcome, including human capi- the importance of building the infrastruc- dous changes. Figures from BNM indicate tal shortages, differences in Shariah in- ture. It says Muslim countries themselves, that Malaysia’s Islamic banking assets terpretation, and a lack of consistency in however, should seek to address their Is- amounted to about RM115 billion (US$34 financial reporting. While the prospects lamic financial architecture. billion) or 13 per cent in terms of market for growth and diversification look good, “They need to establish which model share while the takaful sector stands at it appears there is still much work to be they would prefer to follow — the dual RM5.8 billion. On the Islamic capital mar- done to fulfil the core ambitions of the banking model as in Malaysia where the ket front, Islamic corporate bonds now val- sector,” it concludes. AT

November 2007 • ACCOUNTANTS TODAY 37 IFRS CONFERENCE 2007 UPDATES

Driving Convergence in Accounting Standards

Following the success of the IFRS conference in Europe and in recognition of the increased use of IFRSs worldwide, the 1st IFRS Conference in Asia was held in Singapore on 29 and 30 August 2007 with the objective of further driving convergence in accounting standards around the world.

rganised by the International Accounting Standards materiality threshold. Committee Foundation (IASCF), the conference fea- Financial reporting must be neutral. tured International Accounting Standard Board Disclosures must give investors all the information they O(IASB) members, the International Financial Report- need to understand the item recognised, their measure- ing Interpretation Committee (IFRIC) members and other promi- ment properties and risk exposures nent speakers representing analysts, preparers of financial statements and regulators. Preparers’ perspective on IFRS financial statements (Australia and The 2-day event featured discussions and updates on the latest New Zealand Banking Group Limited). development of IASB projects and the perspectives on IFRS fi- Financial reporting gets more complicated with significant nancial statements and this included views from analysts, developments expected; therefore knowledge management preparers and regulators on IFRS financial statements. Also fea- challenge will continue. tured at the conference were matters relating to the progress of There is a current danger that statutory reporting may be IASB and plans on convergence work with the U.S. Financial Ac- different from what users need to make informed decisions. counting Standards Board (FASB) as well as the special interest This may reduce the value of statutory reported financial in- workshops on technical updates on the phases of current projects formation and cause it to be replaced by other market driven such as Fair Value measurements, Phase II Business Combina- information (which is not regulated) that meets users’ needs. tion project and the Conceptual Framework. Effective communication with users will increasingly be a Part 1 of this article highlights the perspectives of the analysts high priority and those of the preparers as well as regulators on International The advantages of IFRS. Financial Reporting Standards (IFRS) Financial Statements and Principles-based approach which allows the exercise of the convergence work of the FASB and IASB towards achieving a judgement resulting in the presentation of more meaning- global accounting standard. ful information. Greater transparency and consistency such as greater focus Analysts’ perspective on IFRS financial statements (Swiss CFA) on reporting externally based on the way management re- The primary financial statements must provide the infor- ports, reclassification of existing assets and liabilities into mation needed by equity investors, creditors, and other sup- new categories, recognition of more items on the balance pliers of risk capital. sheet including derivatives, securitisation vehicles, new mea- The entity must be viewed from the perspective of an in- surement approaches and additional disclosures across IFRS. vestor in the company’s common equity. Greater comparability of financial reports across entities, Fair value information is the most relevant information for enabling users to make cleaner comparisons. The case is financial decision-making. not compelling in some areas . Recognition and disclosure is based on the information’s Accessing global capital markets by providing a standard relevance to investment decision-making, not on its mea- financial reporting platform and removing one of the key surement reliability alone. impediments for restatement to local requirements. IFRS Complete recognition of all economic transactions and events. converging with US GAAP eliminate reconciliations and ad- Investors’ information requirements must determine the ditional disclosures which are costly and time consuming

38 ACCOUNTANTS TODAY • November 2007 IFRS Conference 2007 Singapore

The disadvantages of IFRS. ficiency and transparency and the importance of moving Economic Reality vs. Statutory Earnings i.e. IFRS earnings to one set of globally recognised accounting standards in vs. real earnings contributed from different earning figures all areas of financial and market regulation. reported and different terminology used to describe the ad- Recognise the wide variations that could occur in regulatory justed earning figures, common adjustments to statutory earn- interpretation and enforcement of standards, which can un- ings from divestments and restructuring, non-qualifying eco- dermine the whole purpose of moving to IFRS. nomic hedges, impairments and defined benefits plans. Promote a high level of consistency in regulatory interpre- IFRS has increased volatility with reporting earnings becom- tation of IFRS and in regulatory decision on how IFRS is ing more volatile principally due to new provisioning meth- being applied by issuers by promoting consistent applica- odologies such as the move from Economic Loss Provision- tion of IFRS standards in line with IOSCO’s broader push ing (ELP) to IFRS Provisioning (Incurred Loss Model). for convergence in securities regulation through the set- Additional complexity with more pages of guidance, which ting up of a database of regulatory decisions taken on IFRS give more choices but prescribe fewer details than rules issues by securities regulators. IOSCO database became based standards. fully operational in January 2007. Trend to extra disclosure resulting in the financial statements IOSCO’s Technical Committee – Standing Committee 1 on becoming voluminous and difficult to understand, additional multinational disclosures and accounting examines issues burdens in data collection and complexity of presentation. of accounting, auditing and disclosures that impact on se- Inflexibility in some areas that strive for uniformity that curities markets. may never be attained. Lack of clarity e.g. hedging grey and black areas. Potential Convergence of FASB and IASB Framework towards inconsistent interpretation by various jurisdictions, emer- global accounting standards gence of regional interpretations, risk of worldwide incon- The agreement between FASB and IASB to work together to- sistency and risk of ‘Big 4’ accounting firms’ interpretation wards converging global accounting standards marks a signifi- of IFRS becoming the de facto requirements in the absence cant step toward formalising their commitment to converge with of specific guidance. US and international accounting standards. A Memorandum of Understanding (MoU), signed as part of Regulators’ Perspective on IFRS Financial Statements this agreement between organisations, aims to remove differences Australian Securities and Investments Commission (the secu- and align agendas, conceptual frameworks and interpretation of rities and auditor regulator in Australia) standards. Its short-term project is to remove major differences Full convergence and fully adopted IFRS in Australia with whilst the medium term looks into new joint standards where sig- IFRS first applied by entities to financial years commencing nificant improvement is required. The current projects under the 1 January 2005 on bases of: MoU are as follows: Need for single set of high quality accounting standards. Accepted in major capital markets. FASB IASB Joint Greatly facilitates cross-border comparisons by investors. • Fair Value Option • Borrowing Costs • Impairment Increased investor confidence. — SFAS 159 issued IAS 23 revised — agenda Reduction in cost of capital. • Investment • Joint Ventures decision by Access to overseas investors funds. Many Australian specific Properties — ED ED published end of 2007 guidance/disclosures have been eliminated and audit reports expected in Q1 2008 • Segments — • Income signed off on IFRS compliance for period beginning 1 July 2007. • Research & IFRS 8 issued taxes — Philippines Securities and Exchange Commission Development — • Government ED expected Full adoption in January 2005 with IFRS implementation com- part addressed Grants — deferred in Q4 2007 pleted. The Philippines needs to address various IFRS imple- in SFAS 141R pending outcome mentation issues and to eliminate specific transaction relief • Subsequent Events of other projects issued locally. Among the challenges identified are: — ED expected in Need to educate all the stakeholders on the standards. Q1 2008 Divergent interpretation among regulators, auditors and private companies. Soon, the stakeholders will see from the convergence work the Issuance of local transition relief if the needs of the local milestones of the MoU with revised IFRS and Statements of Fi- business community are not addressed in time. nancial Accounting Standards (SFAS) and guidance to be issued Fair value measurement challenges to private, public prac- on business combination, fair value measurement, financial state- titioners and regulators ment presentation, revenue recognition, post employment ben- International Organisation of Securities Commissions (IOSCO). efits, leases and many others. Emphasise on fundamental importance that securities regu- Part 2 of this article will carry more technical updates from the lators attach the financial reporting to market fairness, ef- IFRS conference 2007. Stay tuned! AT

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AUDIT MANAGER & TAX MANAGER Benchmarking Project The Institute is working together with the National Productivity Cor- We are a firm of Chartered Accountants in Kota Bahru, poration (NPC) to benchmark the accounting practices using the Kelantan with excellent average fees per client, profitability NPC’s E-Benchmarking platform. The focus group is looking for 40 etc. and we invite suitably qualified candidates to apply for to 50 firms (we have approximately 20 firms as at early October 2007) the positions of Audit Manager and Tax Manager. The successful candidates will be rewarded with a desirable work/ to volunteer to participate in this project, preferably those that are life balance and salaries of RM4,500-RM6,000 per month and currently operating in the Klang Valley. This benchmarking project a competitive bonus structure. Advancement to partnership will be an invaluable tool for practices to transform their operations will be available in the short term. into a more vibrant and profitable entity by adopting the best practices in the market and setting the right performance indicators. Interested candidates should send a resume to : [email protected] or fax to 09-7474108. Firms that are interested can submit their names to the Prac- All enquiries are welcome and will be treated with strict confidence. tice Matters Department at [email protected]. The firms will For more information, please call 012-9810968. be screened and only short listed firms will be contacted for further details. For further information on this project, please con- Mr. SK Foo (MIA 6045) tact Shuhairah or Johnny Yong at 03-2279 9200. AT IRB Update Requirement to Update the Tax Agent’s Personal Tax Capital Market and Services Act 2007 Assessment and Settlement of Outstanding Tax Payable The Capital Market and Services Act 2007 (CMSA) which consoli- dates the existing Securities Industry Act, 1983, Futures Industry for Application and Renewal of Tax Agent Licence Under Act, 1993 and Part IV of the Securities Commission Act, 1993 was Subsection 153(3), Income Tax Act, 1967 passed in Parliament in May 2007 and is effective since 28 Septem- Members are hereby informed that the Inland Revenue Board of ber 2007. The CMSA marks a significant enhancement to the Securi- Malaysia (IRB) requires existing tax agent licence holders and appli- ties Commission’s (SC) approach in regulating the market-place. It cants who wish to apply for a tax agent licence to ensure the following: sets the stage for the SC to achieve key regulatory outcomes in rela- (a) Personal tax assessment is up to date tion to investor protection, market integrity and systemic stability. (b) Personal outstanding tax payable to the IRB has been settled This new Act is now available at the MIA Resource Centre for refer- in full ence. In addition, the SC has also issued a list of “Frequently Asked The IRB will be considering the above prior to approving or Questions” on the salient features of the CMSA together with a new renewing the tax agent licence. Hence, all prior arrangements Licensing Handbook and other relevant guidelines. Most of these made with the IRB on instalment payments have now been re- documents are available on the SC’s website at www.sc.com.my. voked and all outstanding taxes will have to be settled prior to the Following the introduction of the CMSA, please be notified that con- submission of application for new submission or renewal. How- sequential amendments have also been made to the Listing Require- ever, this is only applicable for the YA2006. For the YA2007, tax ments of Bursa Malaysia Securities Berhad (LR) and the Listing Re- agents should continue to pay the tax instalment according to the quirements of Bursa Malaysia Securities Berhad for the Mesdaq Mar- Notice of Instalment Payment (CP500). ket (MMLR). These amendments shall take effect on 28 September This action has been taken to ensure that each tax agent will be 2007 save and except for amendments to paragraphs 8.15 and 11.02 of an example to their clients in compliance with the rules and regu- the LR/Rules 8.15 and 11.02 of the MMLR which shall take effect lations stipulated by the IRB. simultaneously with the effective date of the provisions relating to take- Please contact the Operations Division of the IRB directly at over and mergers in the CMSA which the SC is expected to put in 03- 6209 1256 (Pn. Bidari) or 03-6209 1233 (Pn. Asias) should you place by mid 2008. These consequential amendments are available for have further enquiries on the above. reference on Bursa Malaysia’s website at www.bursamalaysia.com. Please be guided accordingly. AT Please be guided accordingly. AT

40 ACCOUNTANTS TODAY • November 2007 TRAVEL & LEISURE

John and Jackie in Georgetown

Anis Ramli

A self-guided walking tour lets you peek into the glamorous lives of America’s first royalty

he stylish neighbourhood town of Georgetown, Wash- as Kennedy concentrated on his presidential campaign. ington, is home to a venerable collection of mansions, Following the death of her 3038 N Street, 1963 some over 200 years-old; sublime architecture from husband, Jacqueline moved to TFederal to Victorian; and is a place full of political in- this house (3038 N Street, trigue, green preservation and urban renewal. Then of course, no 1963) with her two children. mention of Georgetown would be complete without the Kennedys. The house was offered to her In the 1950s, John F. Kennedy and his wife Jacqueline, arguably as a refuge by Averell and Washington’s most stylish couple, single-handedly turned the city Marie Harriman, (Harriman into the most fashionable place to live — politically and otherwise. served as Ambassador at While Georgetown offers great shopping and lots of dining pos- Large in the Kennedy admin- sibilities, it is the self-guided walking tours — retracing the istration) but she stayed there Kennedy’s journeys through their happiest and most tragic times only for four months before — that have enraptured many visitors to the city. finding a place of her own. This unique walking tour features the early years of one of Jacqueline then moved into America’s most magnetic couples, visiting many of their homes, this house built before 1800 3017 N Street, 1964 from the time Kennedy became a Massachusetts Congressman (3017 N Street, 1964). Once th 3260 N Street, 1951-1953 to when he courted and mar- used as an academy in the 19 ried Jacqueline Bouvier, till the century for young ladies, the time Jacqueline lived here af- widowed Jacqueline Kennedy ter the tragic death of her hus- stayed here for only ten band. months before fleeing The tour begins with the Georgetown forever for Man- first house Kennedy rented hattan. She cited fear for her (3260 N Street, 1951-1953), children’s safety as masses of when he won a seat in the Sen- people camped out on her nar- ate. Here, he planted a magno- row street every single day to lia tree in the backyard and to catch a glimpse of her after the prevent back strains from President’s assassination and the end of the climbing the stairs, he had his Camelot years. bedroom on the ground floor. Maps for the self-guided tours can be ob- 3307 N Street, 1957-1961 This beautiful three-storey tained at the Georgetown Visitors Bureau Federal style house was pur- on M Street, just off the intersection of M chased as a gift to Jacqueline and Wisconsin. It also offers tours of the (3307 N Street, 1957-1961). home Kennedy lived in prior to becoming The deed was said to have president, including lunch and shopping been presented to her as she stops on the Kennedy’s beloved Wiscon- recuperated from the birth of sin Avenue. their daughter, Caroline. John The homes on this walking tour are F Kennedy, Jr. was also born now private residences. Visitors are adhere. The double living room vised to keep to the sidewalks and re- of this house saw many politi- spect the privacy of the current own- cal teas hosted by Jacqueline ers. AT

November 2007 • ACCOUNTANTS TODAY 41 MONEY TREE

What’s the One Money Lesson You Should Teach the Kids

Rajen Devadason need for oxygen ends! Many generous people, both wealthy and not, have learnt it’s fabulously fulfilling to give money to noble causes — with proven I’m not a betting man. But if I were, here’s a wager I’d accept in a track records of excellent stewardship — heartbeat: If you have children, you want the best in life for them! while they’re still alive. The saying, “It’s better to give than to receive,” is proven daily iven the escalating impor- wealth distribution initiative. through the actions of such economically tance of financial literacy, Wills and trusts are the tools used by viable, big-hearted individuals. there are certain lessons well advised individuals to distribute So, if your dream is to raise children of about money dynamics you wealth to loved ones who outlive them. And the highest calibre, then make it one of G your major life goals to train them well. must ensure your kids internalise if they those same in- are to grow up to be economic successes. Your ambition should be to empower You certainly don’t want them to turn into them to develop into resilient adults defective adults who require what Thomas who are successful economic entities Stanley and William Danko described as in their own right and not weak, beg- ‘economic outpatient care’ (EOC) in their garly recipients of Stanley and 1996 bestseller The Millionaire Next Danko-defined EOC! Door. They explain: “Economic outpa- If that’s not your goal, please stop tient care refers to the substantial reading now. economic gifts and ‘acts of kind- But if it is your goal then I’m go- ness’ some parents give their adult ing to share with you today seven children and grandchildren.” different lessons about money. In any family, society or coun- Each on its own has the power to try, the extension of too much liberate young people and place them EOC to otherwise functional squarely on the golden road to finan- adults often cripples them, incul- cial freedom. But be warned: cating a destructive entitlement In case you’re tempted to adopt a mentality that robs them of the op- ‘more is more’ philosophy as opposed portunity to stand tall and straight to the enlightened ‘less is more’ view- — on their own two feet. point and hope to force-feed your kids all Now, having said all that, please the seven lessons at once … don’t! understand I’m not against chari- It will be more effective if you familiarise table giving. And I can prove it … yourself with each of the seven lessons Every comprehensive personal through a quick first reading; then select financial plan should comprise struments the one lesson you believe is the best fit three initiatives: can — and I for your child’s personality and disposition. 1 Wealth protection would say should — be To help you engage your kid, each lesson 2 Wealth accumulation harnessed to facilitate leaving a wider contains one reference to a free online re- 3 Wealth distribution reaching legacy through targeted gifts to source that will aid serious students bet- Please note that targeted giving to worth- selected charities. Actually, in this case, ter absorb the salient points. while charities is a vital component of the there’s no reason to even wait until our So read this column twice. Take appro-

42 ACCOUNTANTS TODAY • November 2007 What’s the One Money Lesson You Should Teach the Kids

priate notes each time. Then take even dren learn to appreciate the importance of ket. Teach your child the need to learn more notes based on the additional read- money. But do walk a fine line to ensure about investment risk so he or she will ing material you’re guided to. Let’s begin: they don’t fall into the trap of thinking learn to harness its power and not fear it The seven lessons are: money is the most important thing in life. or, worse still, stumble unprepared into its 1 Ascertain the price of success; It isn’t. Still, it is rather important. ferocious maw! 2 Acknowledge the importance of money; Free resource: An article entitled “What is Free resource: An article entitled “Investment 3 Live well below your means; Money?” at www.freecoolarticles.com/FP12.htm Risk — Understanding and Profiting From It!” 4 Start saving money … and never stop; at www.freecoolarticles.com/FP15.htm 5 Embrace volatility; Lesson 3 — Live well below your 6 Develop a passion for lifelong learning; means Lesson 6 — Develop a passion for and Throughout your life you will come lifelong learning Take your child to bookstores on a regu- 7 Choose to live an abundant life. across two types of people: Those who are committed to a life centred on immediate lar basis. Introduce him or her to the joys Lesson 1 — Ascertain the price of gratification and a (much) smaller group of reading widely and thinking indepen- success of those who exercise delayed gratification. dently. We live in a world spoilt for choice. While Guess who ends up working for whom? Free resource: A 10-day eCourse entitled “Life we may kid ourselves that ‘we can have it Teach your child this principle: Fools in Quotations” at www.freecoolarticles.com/ FamousQuotations.htm all’, in truth we can’t. For most of us, money spend all they earn or more; the wise under- will be a limiting factor. For all of us, time is! stand the need to live well below their means Lesson 7 — Choose to live an One of America’s more famous founding today so they may have more tomorrow. abundant life A great way to help a child come to grips fathers was Benjamin Franklin. He was the Explain to your children that since each with this truth is to explain the concept of master of the pithy aphorism, one of which human lifespan is finite, so too is the amount a cash flow statement. Then teach him or was: “Time is Money.” of money that can be earned over the eco- her the need to formulate and stick to a If you want your child to grow up confi- nomically productive fraction of a lifetime. budget (which you might choose to call a dent and successful, inculcate great time The best way to live abundantly, over the smart earning-and-spending plan). management skills. Speaker extraordinaire long haul, is to remember the importance Those who live below their means gen- Brian Tracy teaches a concept he calls ‘The of delayed gratification from Lesson 3 — erate cash surpluses that can be channelled Law of the Excluded Alternative,’ which es- Live Well Below Your Means and to under- to buy appreciating and passive income sentially states that if you choose to carry stand compound interest can work for us generating assets. out task A now that means you have ex- or against us. cluded the possibility of doing task B right Free resource: An article entitled “What is a Cash And especially for a teenager who will soon Flow Statement?” at www.freecoolarticles.com/ now. (Multitaskers, don’t take offence!) leave the nest for college or university: Make FP14.htm Now, based on Franklin’s observation, 100 per cent certain he or she understands the Law also applies to money. If you Lesson 4 — Start saving money … the catastrophic consequences of falling prey choose to use a certain sum of your hard and never stop to out-of-control credit card debt. earned cash to buy item X, you won’t be The earlier you inculcate in your child Free resource: A 6-day eCourse entitled “Defeat- able to use that money to buy item Y. the habit of saving a portion of all money ing Credit Card Debt” at www.freecoolarticles So train your child to work hard and .com/DefeatingCreditCardDebteCourseSign that flows into his or her life the more likely smart by making wise choices that arise UpPage.htm this habit will take root! from growing adept at time management and by comprehending the strong links Free resource: A consolidated resource entitled Conclusion “Articles on Saving and Investing to Help You Select one lesson, at a time, to teach your between time and money. Help Yourself and Your Kids” at www.freecool children. If you start early enough, you might Free resource: A five-day e-Course entitled “How articles.com/FP11.htm to Manage Your Time & Regain Your Life” at eventually succeed in empowering your kids www.freecoolarticles.com/TMeCourseSignUp to become independent, successful adults — Page.htm Lesson 5 — Embrace volatility Take your kids on roller-coaster rides – who are able to extend an appropriate level of EOC to you in your waning years. AT Lesson 2 — Acknowledge the if your heart can still handle the strain! De- pending upon your budgetary constraints importance of money Rajen Devadason, CFP, is a speaker, author and in- Since Ben Franklin was so astute, we’ll you may settle for the rides at Genting dependent consultant. He is the CEO of corporate return to him once more. He pointed out: Highlands or aim to take your whole fam- mentoring consultancy RD WealthCreation Sdn ily to Disneyland. Bhd, which helps companies increase profits by “Light purse, heavy heart.” teaching their best people how to enhance their Most of us have at some point in our lives Soon after such a ride, sit down with the personal effectiveness. His internationally read, gone through a ‘long dark night of the soul’ child you’re teaching this lesson to and ex- free electronic magazine GET BETTER can be subscribed to at no cost at www.RajenDevadason. plain the up-and-down movement of invest- worrying about not having enough money. com. Rajen welcomes feedback at rajen@Rajen So, make it a priority to ensure your chil- ment markets, most notably the stock mar- Devadason.com.

November 2007 • ACCOUNTANTS TODAY 43 BETTER LIFE

Stressing your Cholesterol If you are like most forward-looking executives today, you probably feel you are expected to be nothing short of a magician in terms of performance and results. With increasing demands on performance, a 24/7 work environment resulting from globalisation and a pace of change that is accelerating at a breathtaking rate, is it any wonder that you are stressed out every single day?

f this is so, you had best relax for your is one mechanism through which higher a cholesterol test every five years. Frequent, cholesterol’s sake. That’s right. Your cholesterol levels may develop.” regular cholesterol screenings are particu- manic Mondays, traumatic Tues- It is not entirely clear why stress responses larly important if you are older than 65 or Idays, wound-up Wednesdays, frenzied should raise cholesterol. The researchers have risk factors such as diabetes, obesity Thursdays, charged-up Fridays and frazzled said that it might be possible that stress en- or a family history of heart disease. weekends might be boosting the levels of bad courages the body to produce more energy See how your cholesterol numbers com- fat particles in your bloodstream. in the form of fatty acids and glucose. These pare to the table. substances then require the liver to produce Stress Now. Cholesterol Later? Lowering High Cholesterol Studies have shown that stress can Cholesterol lowering is important for raise your cholesterol levels over the everyone — younger, middle age and long term, potentially increasing your older adults; women and men; and people risk of heart disease. Stress is also with or without heart disease. linked to increased heart rates and The main goal of cholesterol lowering weakened immune systems. treatment is to lower your LDL level In one key study published in the enough to reduce your risk of develop- American Psychological Association’s ing heart disease or having a heart attack. Healthy Psychology journal, researchers Professor Andrew Steptoe, D.Sc. and Policosanol Lena Brydon, Ph.D. of University College and secrete more bad LDL cholesterol. Policosanol is a natural substance produced London found that mental stress raises Another possibility is that stress inter- from the waxy coating of sugar cane. Its ori- cholesterol levels in healthy adults. This feres with the body’s ability to get rid of gin goes back to the island of Cuba. It has been research was supported by the Medical Re- excess cholesterol. approved for use in Cuba since 1991. Cur- search Council of the UK and the British Thirdly, it could be that stress triggers a rently, policosanol is sold in more than 40 Heart Foundation. number of inflammatory processes, which countries, including Malaysia, mainly because “We found that individuals vary in their also increase cholesterol production. of its beneficial effects on cholesterol. cholesterol responses to stress,” writes Whatever the reason, we know that high The results from well-designed clinical Professor Steptoe. “Some of the partici- cholesterol is one of the major risk factors trials involving nearly 30,000 patients dem- pants showed large increases even in the for heart disease. In 2002, 30.5 per cent of onstrate that policosanol is suitable as an short-term, while others showed very little Malaysians died from heart disease, the adjunct to dietary and lifestyle recommen- response.” number one killer in Malaysia. dations to reduce raised LDL and total cho- “The cholesterol responses that we mea- lesterol levels. sured in the laboratory reflect the way What Do Your Cholesterol Numbers A review of placebo-controlled studies people react to challenges in everyday life Mean? published in the American Heart Journal as well. So the larger cholesterol respond- The sooner you start monitoring your cho- showed that at doses of 10 to 20mg per day, ers to stress tasks will be large respond- lesterol level, the better. Cholesterol deposits policosanol lowers total cholesterol by 17 ers to emotional situations in their life.” begin forming at a young age and build up to 21 per cent, lowers LDL cholesterol by “It is these responses in everyday life gradually over time. 21 to 29 per cent, and raises good HDL cho- that accumulate to lead to an increase in The National Cholesterol Education lesterol by eight to 15 per cent. fasting cholesterol levels three years later. Programme (NCEP) recommends that men HDL cholesterol helps prevent heart dis- It appears that a person’s reaction to stress and women 20 years of age and older have ease by carrying cholesterol away from

44 ACCOUNTANTS TODAY • November 2007 Stressing your Cholesterol

your arteries and back to the liver, where the process of its re- moval from your body begins. Liver damage, from alcohol abuse or other conditions, can undo the beneficial effects of HDL. The National Heart, Lung and Blood Institute considers HDL cholesterol levels of below 40 mg/dl to be a risk factor for heart disease. Thus, people are frequently advised to keep HDL levels above 40 mg/dl. LDL cholesterol is the main source of cholesterol build up and blockage in the arteries, leading to atherosclerosis or “hardened arteries.” Over time, your arteries become narrowed, which eventually reduce the flow of blood to the tissue. “An intriguing characteristic of policosanol is its natural source,” writes Ioanna Gouni-Berthold, MD from the Univer- sity of Bonn in Germany and colleagues. “It makes policosanol an attractive alternative for a large num-

Total Cholesterol Level Category Less than 200 mg/dL Desirable 200-239 mg/dL Borderline high 240 mg/dL and above High LDL Cholesterol Level LDL Cholesterol Category Less than 100 mg/dL Optimal 100-129 mg/dL Near optimal/ above optimal 130-159 mg/dL Borderline high 160-189 mg/dL High 190 mg/dL and above Very high

* Cholesterol levels are measured in milligrams (mg) of cholesterol per deciliter (dL) of blood. Source: www.thebody.com/nih/cholesterol.html

ber of patients who, although in dire need of cholesterol lowering treatment, are reluctant to use chemically derived drugs and would gladly welcome a natural and efficient alternative.” “In general, policosanol is in our opinion a fascinating new agent for the prevention and treatment of atherosclerotic disease.” A systematic review and meta-analysis of a randomised controlled trial conducted by Purdue University showed that policosanol is more effective in reducing LDL cholesterol levels than plant ste- rols and stanols, stuff we find in margarines and enriched bread.

Heart-Smart Stress Soothers Complement your overall cholesterol lowering plan by learning to manage your hectic lifestyle, eating a healthy diet and exercising regularly. AT

References BBC News, “Stress may up cholesterol levels,” 23 November 2005. Gouni-Berthold I, Berthold HK, “Policosanol: Clinical pharmacology and therapeutic significance of a new lipid lowering agent,” American Heart Journal 2002; 143: pp. 356-65. National Heart, Lung and Blood Institute, www.nhlbi.nih.gov/about/ ncep/index.htm Steptoe A, Brydon L, “Associations between acute lipid stress responses and fasting lipid levels 3 years later,” Health Psychology 2005; 24 (6): pp. 601-607. US National Institute of Health, www.thebody.com/nih/cholesterol.html

This article is contributed by VitaHealth. For more information, please contact VitaHealth at 03-7729 3873.

November 2007 • ACCOUNTANTS TODAY 45 INSTITUTE NEWS

President — Nik Mohd. Hasyudeen Yusoff MIA’s 21st AGM: Two Council Members Vice President — YBhg. Datuk Abdul Samad Hj. re-elected and Kelantan Branch Alias (Dr.) Council Members Accountant General — YBhg. Dato’ Mohd. Salleh during the AGM Chairman voted into the Council Mahmud Deputy Accountant General, Corporate — Tuan Following the Malay- Haji Sahar Othman sian Institute of Accoun- Council Members tants (MIA)’s 21st An- Abdul Halim Husin nual General Meeting YBhg. Dato’ Ahmad Johan Mohammad Raslan (AGM) on 29 Septem- Beh Tok Koay ber 2007, Peter Lim Chan Wan Siew, Paul Thiam Kee, Sam Soh Chen Voon Hann Siong Hoon and Billy Christina Constance Foo Kang Wei Geh have YBhg. Prof. Dato’ Dr. Daing Mohd Nasir Daing been elected as the Ibrahim Eow Kwan Hoong, Michael Institute’s Council Prof. Dr. Ibrahim Kamal Abdul Rahman Members for year 2007/ Kang Wei Geh,Billy 2008. Lam Kee Soon Lim and Soh have Lee Yee Chong Cross section of the served the Council of the Lim Thiam Kee, Peter members who attended Institute since September 2004 and 2005 respectively Liew Kim Yuen the AGM and offered themselves for re-election at the 21st AGM. YBhg. Dato’ Liew Lee Leong, Raymond Billy Kang was also elected into the Council on Mohammad Faiz Mohammad Azmi the same day. He is the MIA Kelantan Branch’s Mohamed Raslan Abdul Rahman Chairman and a partner of Billy Kang & Co. At MIA YBhg. Dato’ Nordin Baharuddin he is a member of the Professional Accountants in Assoc. Prof. Dr. Norman Mohd Saleh YBhg. Datuk Nur Jazlan Mohamed Business (PAIB) and Task Force on Small and Me- Seow Yoo Lin dium-Sized Practice committees respectively. He is Assoc. Prof. Dr. Shahul Hameed Mohamed also a fellow of the ACCA in addition to being a mem- Ibrahim ber of MIA. Assoc. Prof. Dr. Susela Devi Selvaraj At the same AGM, Terence Lee Cheang Hui an- Soh Siong Hoon, Sam nounced his retirement from the Council and MIA Dr. Thillaisundaram Arumugam takes this opportunity to thank him for his active Uthaya Kumar K Vivekananda contributions towards the growth of the profession Yeo Tek Ling and the Institute. The new MIA Council line-up for 2007/2008 is as For more information on Council Members, follows: please visit www.mia.org.my/ins/abo/str/cou/ AT

Nik Mohd. Hasyudeen MIA visits SSM (centre) and Tuan Haji Abdul Karim (sixth from On 14 September 2007, the Institute paid a courtesy by President Nik Mohd. Hasyudeen Yusoff. left) with members of the call to the Chief Executive Officer of the Compa- The purpose of the visit was to further strengthen management from both the ties between both organisations to foster a good MIA and SSM after the nies Commision of Malaysia (SSM) Tuan Haji Abdul meeting Karim Abdul Jalil. The delegation from MIA was led working relationship. It also served as a platform to introduce Nik Mohd. Hasyudeen, as the new President of the Institute to Tuan Haji Abdul Karim and his team. During the meeting, Nik Mohd. Hasyudeen shared some current developments in the profession with Tuan Haji Abdul Karim while Tuan Haji Abdul Karim reciprocated with information on developments in areas that fall under the SSM’s purview. Also dis- cussed at the meeting were ways in which both MIA and SSM can collaborate in order to form a strong relationship as co-regulators. AT

46 ACCOUNTANTS TODAY • November 2007 Institute News

NPC and MIA to Help Small and than others in certain key areas. ‘’This will enhance Medium-Sized Accounting the status of the profes- Firms to Benchmark their sion in the eyes of regulators and other policy mak- Practices for Greater Efficiency ers.’’ The dynamism of the global market-place today requires ’The NPC’s involve- organisations to be anticipative and responsive to stake- ment will also enable holders’ needs and changing competitive pressures. In the Government to un- view of this, the Malaysian Institute of Accountants derstand our industry (MIA) entered into a Memorandum of Understanding better in the long run. (MoU) with the National Productivity Corporation When the Government and MIA have to negotiate Ho (front-right) and (NPC) to help the former’s small and medium-sized with other countries on issues with regards to Tuan Haji Othman exchanging the member firms achieve competitiveness by facilitating a liberalisation, this information will hold us in good documents as Nik benchmarking exercise within the industry. stead.’’ Mohd. Hasyudeen Under the agreement, MIA will identify member firms Apart from that, Nik Mohd. Hasyudeen stated that (behind-left) and Dato’ Nik Zainiah look on that can become part of the Community of Practices the MoU will act as a platform for parties involved (CoP), a project which the firms voluntarily participate to proceed with preliminary discussions, such as ne- in so that NPC can study the key performance indica- gotiations, planning and preparation in organising tors that drive these organisations to develop industry future activities relating to benchmarking. trends. These trends can then be referred to by other At the ceremony, MIA was represented by its Ex- participating member firms as a set of best practices. ecutive Director, Ho Foong Moi, while the NPC was According to MIA’s President, Nik Mohd. Hasyudeen represented by its Senior Director, Service Sector, Yusoff, the agreement, which is a first of its kind with Tuan Haji Othman Ismail. Nik Mohd. Hasyudeen the professional service provider industry, is a golden and the Director-General of the National Productiv- opportunity for MIA to better understand what makes ity Corporation, YBhg. Dato’ Nik Zainiah Nik Abdul its member firms tick and why some firms are better Rahman witnessed the ceremony. AT

Practitioners’ Updates Session 2007 The recent changes As part of its efforts to be more responsive to the to the Companies Act, needs of the Malaysian accountancy profession, the 1965 especially in the Institute endeavours to provide members with op- areas of directors’ du- portunities to “voice-out” their concerns and their ties and responsibili- expectations of the Institute. This is seen as an im- ties as well as addi- portant communications platform with members be- tional compliance sides giving them the opportunity to earn CPE credit work performed by hours. auditors of PLCs. In line with this, the Institute organised the Prac- Findings of the prac- The session in progress titioners’ Updates Session on 21 September 2007 at tice review exercise. the Cititel, Mid Valley. The two and a half hour ses- The recent requirement to update the tax agent’s sion which saw the participation of approximately personal tax assessment and settlement of out- 400 members will replace the annual practitioners’ standing tax payable for application and renewal dialogue which the Institute used to organise in past of tax agent licence under subsection 153(3), In- years. come Tax Act, 1967 Members had taken this opportunity and had In addition, the consultative document issued by raised many issues during the session. Some of the the Institute on the forthcoming amendments to the “very important” or salient issues raised by the Accountants Act, 1967 entitled A New Framework members are the following: for the Accountancy Profession was also circulated to The public’s perception of the accountancy pro- members for their information. fession especially in the area of audit subsequent Members who did not attend this session are ad- to recent corporate failures which include any in- vised to download the presentation slides from the vestigation or disciplinary action taken against Institute’s website at www.mia.org.my to keep them- members who may have been involved in the said selves abreast with the latest amendments affect- corporate failures. ing the accountancy profession. AT

November 2007 • ACCOUNTANTS TODAY 47 Institute News

PENANG BRANCH As an institution emphasising on quality education, USM has always recognised and granted MIA and the Academia awards to its students who excel academically. To As part of ongoing efforts honour the students’ relentless hard work and per- to promote the accoun- severance, the evening followed with the presenta- tancy profession, Penang tion of certificates to students of both management Branch Chairperson and accounting programmes on the Dean’s list and Adelena Chong and an award to the best accounting student by profes- Committee Member Ooi sional accounting bodies. Kok Seng attended the The “Best Student in Auditing” award was given Excellence Award Day at by KPMG Penang. The award was presented by Ooi the Dewan Persidangan Kok Seng, Partner of KPMG and fellow Committee Ooi presents the award USM on 30 August 2007. Yang Berusaha Assoc. Pro- Member. The “Best Student in Internal Auditing” for Best Student in fessor Dr. Omar, the Deputy Vice-Chancellor of Stu- award was given by the Institute of Internal Auditors, Auditing. Looking on is Assoc. Prof. Dr. Ishak dent Affairs and Development officiated the event. Malaysia by Christopher Chong, Vice-President of Ismail, Dean of the The evening began with the signing of the Memo- the Northern District Society. The “Best Student in School of Management randum of Understanding (MoU) between Universiti Taxation” award was presented by David Hor, part- Sains Malaysia (USM) with the Harvard Business ner of David Hor and Chan, The “Best Student in School Alumni followed by another MoU between Management Accounting” award was presented by USM and Motorola Technology Sdn Bhd. The School Jack Ong, Head of Johor and Penang Branch, CIMA of Management received RM20,000 from the Harvard and the “Best Student in Financial Accounting” award Business School Alumni in the form of a grant to buy was given by MICPA.The CPA Australia Book Award books for needy and outstanding first-year students. was given to the “Best Student in Financial Account- The MoU with Motorola paved the way for access to ing in Year 1”. Motorola by staff and students’ of the School to in- It is the hope of the Institute that such awards will ternship, joint-research and sabbatical at the encourage students to put in more effort and focus on Motorola premises in Penang. It also included a their academic pursuits while ensuring the institutions RM6000 award for the “Best Student in Management” of higher learning adopt only the best practices in en- and full-time employment with Motorola. suring the quality of the accountancy profession. AT

SARAWAK BRANCH Career Talk to Curtin Undergraduates The MIA Sarawak Branch participated in a career talk at Curtin University of Technology, Miri Campus. In August, Pauline Ho, lecturer and course coordina- tor (accounting) arranged for the final year accountancy undergraduates to attend a talk on the accountancy profession. The MIA Sarawak Branch Manager, Lucy Read, presented the talk on MIA and gave information on how the students Pauline Ho and Lucy Read with future accountants at Curtin University, Miri could be members of MIA in the near future. AT

Participants listening SABAH BRANCH attentively to the career talk MIA’s Contribution to Sabah Speakers (L-R) CIMA, Doreen Tan; CPA (A), State Library Poon Chiong Phui; MIA, On 23 August 2007, MIA Sabah Branch successfully Catherine Linggian; ACCA, Goh Hui Choon organised a career talk to students, school counsellors and graduates at the Sabah State Library, Kota Kinabalu. Three Professional Bodies, ACCA, CIMA and CPA Australia joined MIA in the Awareness Programme. Over the years, MIA has donated one hundred and twenty seven copies of the latest edition of accounting, auditing and financial reporting standards books both in Malaysia and the international context to the State Library. The books will be kept in the MIA corner situated at the library for reference. Many students pursuing accountancy studies benefit from these yearly contributions from MIA. AT

48 ACCOUNTANTS TODAY • November 2007 News from Professional Bodies COLUMNS

Association of Chartered Certified Accountants ▼ management such as Transmile,” Dato’ Dr. Ng said at the opening of the CFO Summit 2007. CFOs Urged to Promote ACCA President, Gillian Ball concurred that “CFOs must be Accountability and Transparency CFOs must be fully committed to creating an ethics-based culture. This is because legalistic, rules- squeaky clean and The role of Chief Financial Officers (CFOs) has based codes would encourage creative, loophole- undergone significant and dramatic change in the their integrity based avoidance and reduce value creation by pro- last decade due to a range of developments in the fessionals due to the constraint, she said. beyond reproach global economic and regulatory environment. ‘It is essential that the CFO and the senior man- while juggling their Responding to this development, The Associa- agement team should be the champions in creat- tion of Chartered Certified Accountants (ACCA) multifarious roles in ing an ethics-based culture. Top management and The Asian Strategy and Leadership Institute must act to make the code a ‘living and breath- the wake of recent (ASLI) organised the annual CFO Summit 2007 ing’ document,’ said Mrs. Ball when she delivered entitled “CFOs: Creating Value in Uncertain corporate misman- a Special Address on ‘Professionalism and Ethics’ Times” from 14-15 August 2007. This high profile as part of the ACCA worldwide series of events agement such as event was aimed at demonstrating how CFOs can for the year 2007. Transmile.” enhance their capabilities as leaders by adding More than 130 delegates; comprising CFOs, YB Dato’ Dr. Ng Yen Yen, value to an organisation, driving its profitability senior finance directors and finance profession- Deputy Finance Minister and ensuring sustainable development practices als attended the Summit which was sponsored by are implemented. Oracle, YTL Hotel and Sunway TES Sdn Bhd.AT Deputy Finance Minister YB Dato’ Dr. Ng Yen Yen said that even before auditors took a look at “It is essential that the CFO and the senior the financial statements, CFOs had an important responsibility to ensure that the companies’ finan- management team should be the champions cial statements not only met regulatory require- in creating an ethics-based culture. Top man- ments but also were of high standard and quality. agement must act to make the code a ‘living “CFOs must be squeaky clean and their integrity beyond reproach while juggling their multi- and breathing’ document.” farious roles in the wake of recent corporate mis- Gillian Ball, President, ACCA

(L-R) : Tay Kay Luan, ACCA Director of ASEAN and Australasia, YBhg. Dato’ Dr. Micheal Yeoh, Chief Executive Officer of ASLI, YB Dato’ Dr. Ng Yen Yen and Gillian Ball, President of ACCA at the summit.

November 2007 • ACCOUNTANTS TODAY 49 News from Professional Bodies

Chartered Institute of Management Accountants ▼ include representatives from Kimberly-Clark, The Linde Group plc, Rolls-Royce, Tesco, Unilever and CIMA Issues Warning on the the Department for Work and Pensions in the UK. Need to Transform Finance The report outlines how, with increased access to global resources, the quality of decision making Functions Across the Globe is becoming the basis of competitive advantage and CIMA warns companies around the success. Leading companies have already woken- world that if they fail to transform their up to the opportunities presented by developments finance function to help improve deci- in technology and globalisation. Now they are look- sion making at every level, they are ing to their finance and accounting functions to work putting their competitive position at closely or ‘partner’ with the business and help im- risk. CIMA also warns that accountants prove decision making and support value creation. themselves need to develop their skills Charles Tilley, Chief Executive at CIMA, says: to support the finance transformations “Improving decision making has long been debated that are taking place across the globe. as a driving factor behind superior business perfor- In order to remain relevant to the evolv- mance. This report is the first in a series to be pro- ing market-place they need to possess duced by CIMA and demonstrates how leading busi- a broad range of wider business skills nesses have already seized the opportunities pre- in addition to the core skills and finan- sented by finance transformation to engage finance cial disciplines of the traditional ac- to improve decision making across the business. countant skill set. Management accountants play a key role in adding CIMA’s report, entitled Improving value to the finance function as an integral part of Charles Tilley, Chief Decision Making in Organisations (see the business.” Executive, CIMA www.cimaglobal.com/decisionmaking), has been created using information provided by member The CIMA Improving Decision Making in organisations of the CIMA Improving Decision Organisations Forum includes representatives Making in Organisations Forum, many of whom from the following organisations: offered individual case study materials and opinions BBC World Service based upon their own experiences. Forum members The Linde Group plc Department for Work and Pensions “Improving decision making has long been debated as a driving factor Diageo behind superior business performance. This report is the first in a Ford Fujitsu Siemens Computer Ltd series to be produced by CIMA and demonstrates how leading busi- Kimberly-Clark nesses have already seized the opportunities presented by finance Pfizer Ltd transformation to engage finance to improve decision making across F Hoffman-La Roche Ltd Rolls-Royce the business. Management accountants play a key role in adding Royal Mail value to the finance function as an integral part of the business.” Tesco Stores Ltd Charles Tilley, Chief Executive, CIMA Unilever AT

Membership Conferment weeks. Membership assessors from the CIMA head of- Within an Hour fice in London who conducted the assessment in CIMA Passed Finalists took advantage of a face- Petaling Jaya comprise David Stanford, Chairman “CIMA Malaysia to-face membership assessment session in early of the Membership Board and Wilf Farnworth, October to apply for membership into the Insti- Chairman of the Technical Committee. Both congratulates the 38 tute after gaining the relevant three years of prac- Stanford and Farnworth were assisted by local as- people who were tical experience. This was an opportunity for sessors and Paul Weymouth, Head of Product De- admitted as new them to obtain immediate approval for their velopment and Learning Support. membership application. Under normal circum- CIMA Malaysia congratulates the 38 people who Associate members stances, membership applications are sent to the were admitted as new Associate members of the In- of the Institute.” UK and results are only known after about eight stitute. AT

50 ACCOUNTANTS TODAY • November 2007 News from Professional Bodies

CPA Australia ▼ CPA Australia Appoints expectations of the new generation of professionals, it’s never been more important for us to be for- New President ward thinking and responsive,” said Malley. Australia’s largest accounting body CPA Australia is Malley has a history of involvement with CPA pleased to announce the appointment of Alex Malley Australia, having been elected New South Wales FCPA as its new President from 1 October 2007. The Divisional President in 2003, a Board Vice-President President will serve 18 months, following an exten- in 2005 and Deputy President in 2006. sive governance review, which culminated in the ap- Assisting him in his presidential role are two Deputy pointment of a new 12-member board last month. Presidents, Professor Richard Petty FCPA and Low Mr. Malley is currently the Chief Executive Of- Weng Keong FCPA. Professor Petty is the Managing ficer of professional medical association USANZ. He Director of Flintwood International Ltd, an investment Alex Malley, CPA has more than 20 years’ consultancy experience to company headquartered in Hong Kong. Low is a con- Australia’s new President private and public sectors and held senior posts in sultant and company director who recently retired academia. from Ernst & Young, Singapore where he was a past country managing Malley concurrently serves on a number of boards The members of the new board are: and government sector committees, including as Inde- partner. Alex Malley, FCPA (NSW), President pendent Chair, audit & risk committee, Audit Office of For the first time, Low Weng Keong FCPA (Singapore), Deputy President NSW; Independent Chair, audit & risk committee, Of- the board includes two Professor Richard Petty FCPA (Hong Kong China), fice of Police Integrity, Victoria; Chairman of the non-member direc- Deputy President Australasian Reporting Awards; and a board member tors appointed to bring John Cahill FCPA (WA) Stephen Chapman FCPA (ACT) of the Royal Institute for Deaf and Blind Children. greater mix of Paul Cooper FCPA (QLD) independence and di- Outgoing President Paul Meiklejohn said that Penny Egan FCPA (TAS) versity of perspective Malley’s experience in academia, combined with his Christina Foo FCPA (Malaysia) consulting and management skills would be a great and skill to the Board Mark Grey (non-member director and CEO, asset to the profession whose main challenges in- and reinforce CPA Queensland Eye Hospital) clude globalisation and skills shortage. Australia’s commit- Kerry Ryan (non-member director and partner, Deacons) “Given the growing global demand for accoun- ment to best practice Bruce Trebilcock FCPA (SA) Graeme Wade FCPA (VIC) tants and the different learning and communication in governance. AT

Survey Supports ponent of the survey include CPA Australia President, the following: Paul Meiklejohn said that IFRS for SMEs 80 per cent of respondents CPA Australia initiated the The introduction of International Financial believe IFRS for SMEs is survey to provide thought Reporting Standards (IFRS) for small and necessary and desirable leadership on IFRS for medium-sized entities (SMEs) is sup- to provide a specific SMEs and assist the IASB ported by the majority of CPAs working in framework for financial in its endeavours. public practice and SMEs, according to a reporting by SMEs “As a leading professional research commissioned by CPA Australia. 60 per cent believe SMEs body, CPA Australia regu- The research, CPA Australia-CGFRC should be given an option larly taps into the knowledge survey on accounting for small and medium to choose between Full and expertise of its extensive entities was conducted by the Corporate IFRS or the proposed IFRS for SMEs membership to help shape the best possible Governance and Financial Reporting Cen- 65 per cent of Malaysian respondents be- outcomes for the public, business and the tre, National University of Singapore to in- lieve that IFRS for SMEs should be appli- profession. vestigate views on the introduction of IFRS cable to large unlisted companies that do “These survey results reveal interesting for SMEs as proposed by the International not have public accountability insights into the views of CPAs from across Accounting Standards Board (IASB). 76 per cent of Malaysian respondents don’t the region and will be used by CPA Austra- The survey was conducted between June- believe IFRS for SMEs is an appropriate title lia to inform its submission to the IASB.” AT July 2007 and captured Key findings — country comparison the views of a sample of Malaysia Hong Kong Singapore Australia Region CPA Australia members IFRS for SMEs is necessary and desirable to provide working in public practice a specific framework for financial reporting by SMEs 80% 83% 87% 70% 81% and SMEs in Australia, SMEs should have the choice to apply the IFRS for SMEs 60% 68% 69% 61% 65% Hong Kong, Malaysia and IFRS for SMEs should be applicable to large unlisted Singapore. Key findings companies that do not have public accountability 65% 65% 58% 64% 63% from the Malaysian com- IFRS for SMEs is not an appropriate title 76% 63% 62% 67% 67%

November 2007 • ACCOUNTANTS TODAY 51 News from Professional Bodies

The Malaysian Institute of Certified Public Accountants ▼ • Universiti Teknologi MARA, Nur Khairunnisa Abu Hasan 2007 MICPA Excellence Awards • Universiti Tenaga Nasional, Mohd Fairuz bin A Gani The Institute held its annual presenta- • Universiti Utara Malaysia, Agnes Ng Hui Pin tion of Excellence Awards, Examination A total of six gold medals were presented to stu- Certificates, Prizes and Membership dents who passed the MICPA examinations with Certificates on 25 August 2007 at Seri high distinctions. They were: Pacific Hotel Kuala Lumpur. • Shamsir Jasani Grant Thornton Gold Medal The Presentation Ceremony was of- Advanced Taxation, Liew Sui Fun, PWC Kuala Lumpur. ficiated by YBhg. Datuk Ali Abdul Kadir, • Ng Wing Keung Gold Medal Chief Executive Officer and Head of Advanced Financial Reporting, Tan Hoe Poo, PwC Asia, Dubai Investment Group Asia Sdn Penang. Bhd and a Past President of the Insti- • Tan Sri Dato’ Jaffar bin Hussein Gold Medal tute. The ceremony was witnessed by Advanced Business Management and Integrative Tong Seuk Ying receiving the token of appreciation on behalf of YBhg. Puan over 220 students, their family mem- Case Study, Lim Hooi May, PwC Kuala Lumpur. Sri Datin Mary Lee Siew Cheng bers, friends and guests of MICPA. • Shamsir Jasani Grant Thornton Gold Medal The Excellence Awards represents Advanced Taxation, Khor Sew Lin, Serene, Ernst & an important part of the Institute’s ef- Young. forts to promote accountancy and to ac- • Ernst & Young Gold Medal cord honour and public recognition to Advanced Auditing & Assurance, Tan Hoe Poo, young Malaysians who have achieved PwC, Penang. all-round excellence in the pursuit of • Tan Sri Dato’ Jaffar bin Hussein Gold Medal an accounting qualification. Advanced Business Management and Integrative The Excellence Awards are divided Case Study, Chew Lay Yen, PwC, Kuala Lumpur. into two categories namely: At the same ceremony, the Vice-President of the Excellence Award for The Most Outstand- Institute, YBhg Dato’ Ahmad Johan Mohammad ing CPA Student — This award is be- Raslan presented examination certificates to all suc- Ng Hock Pin receiving the Appreciation Award on behalf of West stowed on the best all-round CPA stu- cessful candidates of the November 2006 and May Synergy Sdn Bhd dent who has recently completed the 2007 MICPA examinations. MICPA examinations; MICPA provides two streams of training and Excellence Award for Best Accounting Graduates — MICPA students may undertake their training in This award is presented to the top accounting gradu- accounting firms or in approved training ate from nine universities that offer the Bachelor of organisations in commerce, industry or the public Accountancy programme. sector. An Appreciation Award was presented to The criteria for the Awards include academic West Synergy Sdn Bhd in recognition of the achievements, involvement in social and extra-cur- organisation’s commitment and support for the ricular activities as well as outstanding personal traits. MICPA training programme under Stream II. Ng Datuk Ali Abdul Kadir presented The Most Out- Hock Pin received the Appreciation Award on be- standing CPA Student Award to Rosalind Tay Swee half of the organisation. Pei who is attached to Ernst & Young. He also pre- A token of appreciation was also presented to two The Most Outstanding sented the Excellence Awards for Best Accounting kind-hearted individuals in recognition for their support CPA Student Rosalind Graduates to: towards the accountancy profession by donating all the Tay Swee Pei • Universiti Islam Antarabangsa Malaysia, Zety royalties collected from the sales of their newly pub- Haida Zaimidin lished book titled Practical Auditing in Malaysia to the •Universiti Kebangsaan MACPA Educational Trust Fund. The Vice-President Malaysia, Abdul Hadi of the Institute presented the token of appreciation to bin Gonawan Tong Seuk Ying, who represented YBhg. Puan Sri •Universiti Malaya, Datin Mary Lee Siew Cheng. Cheah Kam Fei The MACPA Educational Trust Fund was set up •Universiti Multimedia in 1981 to promote education and research in ac- Malaysia, Tan Sze Tiing countancy and related fields. The Trust Fund con- •Universiti Putra Ma- tinues to provide financial assistance to young Ma- laysia, Chia Sook Tuan laysians with outstanding academic records but who •Universiti Sains Malay- are financially disadvantaged to pursue a higher ac- Newly qualified CPAs sia, Leong Jinq Yng countancy qualification. AT

52 ACCOUNTANTS TODAY • November 2007 News from Professional Bodies

The Institute of Chartered Accountants in England and Wales ▼ Pathway Workshops Held on 1 & 4 August 2007, Sime Darby Convention say, Council Member from ICAEW UK and YBhg. Centre Workshops were held to brief participants Dato’ Gan Ah Tee, Chairman of the E&T Subcom- on the experienced route to obtaining the ACA mittee of the ICAEW Malaysia City Group gave qualification. The four workshop sessions over the opening and closing remarks. For more informa- two days were well attended. Elaine Hong, Head tion, please contact the ICAEW Malaysia office at of Malaysia, facilitated the workshops. Hilary Lind- 03-2094 6340. AT Lifetime Achievement Award Presented to Tan Sri Dato’ Hanafiah Hussain When the Lifetime Achievement Award was established by the Malaysian Chap- ter of the ICAEW in 2005, it was to recognise and honour selected members of the Institute who made a significant contribution to the Accountancy profession in Malaysia. The recipient of the inaugural award was Tan Sri Hassan Merican. This year, the Malaysia City Group decided to present the award to Tan Sri Dato’ Hanafiah bin Hussain for his enormous contributions to the country and the profession via his participation in the corporate world as well as in the political scene. During his illustrious and distinguished career spanning more than 50 years, Tan Sri Dato’ Hanafiah with the Lifetime Achievement Award Tan Sri Dato’ Hanafiah was the first bumiputera chartered accountant in Malay- sia. In 1963, he was selected to spearhead the establishment of the highly suc- After Taiwan, Tan Sri was appointed as the Ex- cessful Malaysian Muslim Pilgrim Savings Corporation (“Tabung Haji”), which ecutive Chairman of Government-owned Bank was the first successful model of an Islamic deposit taker in the world. In 1963, Bumiputra Malaysia Bhd and Chairman of the pri- he founded the first bumiputera accounting firm, Hanafiah Raslan and Mohamad, vately owned South East Asia Bank Ltd, Mauritius which in 2002 became a member firm of Ernst & Young. consecutively between 1990 and 1993. Then in 1965, Tan Sri Dato’ Hanafiah was elected as the first Chairman of the On the political front, Tan Sri was a highly respected Federal Agricultural Marketing Authority (FAMA). He was elected as the Presi- UMNO politician. Tan Sri served as a Member of Par- dent of the Malaysian Malay Chamber of Commerce for five consecutive years liament for the Jerai constituency for ten consecutive between 1966 and 1970 and President of the Malaysian International Chamber years between 1964 and 1974. He was also a Supreme of Commerce in 1969. Council Member and Treasurer of the Government Between the years of 1986 and 1990, Tan Sri was chosen by Tun Dr. Mahathir party in power (UMNO) between 1965 and 1970. Mohammad, the former Prime Minister of Malaysia, to serve in Taiwan, ROC, To honour his meritorious services and contribu- as his special envoy with the rank of Ambassador. He was instrumental in en- tions, Tan Sri was bestowed various awards and or- hancing bilateral relations between Taiwan and Malaysia and played a major ders of chivalry. Among them were the Panglima Setia role in promoting Malaysia to Taiwanese entrepreneurs and investors result- Mahkota (P.S.M) by His Majesty the Yang di-Pertuan ing in manifold increase in two-way trade and commerce. Currently, Tan Sri is Agong (which carries the title Tan Sri), the Dato’ Setia the Advisor to Taipei Investors’ Association in Malaysia (“TIAM”) comprising Diraja Kedah (D.S.D.K) by HRH the Sultan of Kedah, of 1800 investors. Some of the major investors are Acer Technologies, Chung the Ahli Mangku Negara (A.M.N) and the Setia Diraja Hwa Picture Tube, Titan Group, Far East Group, Hualon etc. Kedah (S.D.K). AT

Annual Dinner to Celebrate The highlight of the evening was the presentation of the Lifetime Achievement Merdeka Award to Tan Sri Dato’ Hanafiah Hussain, The ICAEW, Malaysia City Group, held its 4th an- one of the Institute’s most prominent Ma- nual dinner at the J W Marriott Hotel, Kuala Lumpur laysian members. In his speech, Tan Sri on 7 September 2007. Themed ‘Merdeka’, in line Hanafiah recalled the early days after with the celebration of Malaysia’s 50 years of inde- Merdeka and the profession in those days. pendence, the dinner was attended by many mem- He stressed the importance of standing by bers and students from the Institute including the your beliefs, without fear or favour and that President from the UK, Richard Dyson and the Ex- members of the Institute should practise the highest standards of honesty, integrity ecutive Director, Learning and Professional De- Richard Dyson, velopment, Dr. Raymond Madden. and steadfastness. AT President, ICAEW

November 2007 • ACCOUNTANTS TODAY 53 IFAC NEWS

IFAC Surveys Member sist member bodies and other educators IAASB Releases Fifth in implementing the IT knowledge com- and Regional Body ponent of a prequalification accounting Final Redrafted ISA Leaders on the education programme. The IAASB has released the fifth final In- Accountancy Profession The IAESB has also released its Strate- ternational Standard on Auditing (ISA) re- gic and Operational Plan which sets out the drafted following its clarity drafting conven- and Economic Growth direction and priorities for IAESB activities tions. The new standard, ISA 600 (Revised and Redrafted), Special Considerations — On 1 October 2007, IFAC launched a glo- during the period 2007-2009. The practice Audits of Group Financial Statements (In- bal survey of the Presidents/Chairmen statements and the Strategic Plan can be cluding the Work of Component Auditors), and Chief Executives of its members, as- downloaded free-of-charge from the IFAC assists the group engagement partner in sociates, and regional organisations. The online bookstore (www.ifac.org/store). AT taking responsibility for the direction, su- survey is designed to obtain a global per- pervision and performance of the group spective on issues affecting the accoun- audit engagement and the issue of an tancy profession and economic growth and auditor’s report that is appropriate in the development in their jurisdictions over the IPSASB Seeks Comments circumstances. The ISA can be down- next year. The results will enable IFAC to on Updates to Foreign loaded free-of-charge from the IFAC online communicate the profession’s role and re- Exchange Rates Standard bookstore (www.ifac.org/store). AT sponsibilities and the ways in which professional accountants worldwide contrib- The International Public Sector Account- ute to economic development. IFAC will ing Standards Board (IPSASB) is seeking report the survey results during the World comments on proposed revisions designed Effective Date of Clarity ISAs to enhance the clarity and usability of In- Accountancy Week (2-8 December 2007). The IAASB has announced that the final ternational Public Sector Accounting Stan- Member and regional bodies will be pro- effective date for all redrafted ISAs will be The Effects of Changes in vided with results from their jurisdictions dard (IPSAS) 4, for audits of financial statements for peri- Foreign Exchange Rates. The exposure in advance of the IFAC release so that they ods beginning on or after December 15, draft proposes updates to reflect, as appro- can plan local publicity. AT 2009. In announcing the definitive date, the priate for the public sector, the latest revi- IAASB hopes to eliminate uncertainty about The survey can be accessed online at sions to the corresponding International www.ifac.org/globalleadershipsurvey/. It takes when the new standards will apply. This will Financial Reporting Standard issued by the approximately 15 minutes to complete. Re- also allow standard setters, regulators and International Accounting Standards Board. sponses are requested by 1 November 2007. auditors to plan for the adoption and imple- The exposure draft may be viewed online mentation of the standards. The IAASB staff at www.ifac.org/eds. Comments are re- has issued a communique that provides fur- quested by 31 December 2007 and may be Education Standards ther information on the effective date. It can emailed to [email protected]. AT Board Releases Practice be viewed at web.ifac.org/download/ IAASB_Clarity_Update_Oct_2007.pdf. AT Statements and Strategic Plan IAASB Consults on The International Accounting Education Proposed Future International Auditing and Standards Board (IAESB) has released two Technical Strategy Assurance Standards new International Education Practice State- The International Auditing and Assurance ments (IEPSs) to enhance the education Board Issues New Standards Board (IAASB) is seeking com- and training of current and future mem- ments on its proposed future technical strat- Requirements for the bers of the profession. egy and work programme for the period Audit of Group Financial IEPS 1, Approaches to Developing and 2009-2011. The proposed strategy, which is Maintaining Professional Values, Ethics set out in a consultation paper was developed Statements and Attitudes, provides guidance on ap- following an extensive consultation process New requirements designed to enhance the proaches to the development of profes- that included a survey, three strategy review quality of audits of group financial statements sional values, ethics and attitudes and forums and meetings with the IAASB Con- was released recently by the International the methods for delivering ethics edu- sultative Advisory Group and other stake- Auditing and Assurance Standards Board cation, stressing the importance of work- holders. The consultation paper can be (IAASB), an independent standard-setting place learning and assessment. viewed at www.ifac.org/EDs. Comments are board under the auspices of the International IEPS 2, Information Technology for Pro- requested by 30 November 2007 and may be Federation of Accountants (IFAC). Interna- fessional Accountants, is designed to as- emailed to [email protected]. AT tional Standard on Auditing (ISA) 600 (Re-

54 ACCOUNTANTS TODAY • November 2007 MEMBERS’ UPDATE

vised and Redrafted), Special Considerations Audit Firms Non-Audit Firms — The Audit of Group Financial Statements FROM 1-30 SEPTEMBER 2007 FROM 1-30 SEPTEMBER 2007 (Including the Work of Component Auditors), assists the group engagement partner in tak- New Registration New Registration ing responsibility for the direction, supervi- AUDIT FIRM AF NO. NON-AUDIT FIRM NF NO. sion and performance of the group audit and SELANGOR DARUL EHSAN JOHOR DARUL TAKZIM the issue of an auditor’s report that is appro- PWT & Associates 001916 priate in the circumstances. Ho & Partners 0902 38A, Lorong Gelugor To assist the group engagement team to 166, Jalan Megat Off Persiaran Sultan Ibrahim 83000 Batu Pahat obtain sufficient appropriate audit evidence 41300 Klang Tel: 07-433 1302 on which to base the group audit opinion, Tel: 03-3342 0516 Fax: 03-3344 1790 Fax: 03-7722 5220 the ISA specifies the types of work that the e-mail: [email protected] group engagement team or component auditors on its behalf, should perform on Ceased Operation PULAU PINANG the financial information of significant com- JOHOR DARUL TAKZIM Saniza & Associates 0903 ponents. It also requires the group engage- Tommy Kong, Low Yew-Loon 32A Jalan Todak 4 ment team to be appropriately involved in & Partners 0095 Bandar Sunway Seberang Jaya 13700 Prai the work that component auditors perform. 2C & 2C-1, Jalan Giam Tel: 04-370 4045 The ISA is effective for audits of financial Taman Majidee Fax: 04-370 4044 periods commencing on or after December 80250 Johor Bahru e-mail: [email protected] 15, 2009. This date is consistent with the MELAKA effective date for all the standards being Ron P’ng & Co. 1355 redrafted under the IAASB’s Clarity project. 723a Jalan Perak 1 Taman Megah, Bukit Beruang Ceased Operation “The project has not been an easy 75450 Air Keroh PERAK DARUL RIDZUAN WT Choong Consultancy Services 0699 one, but we are confident that the SELANGOR DARUL EHSAN 524A Jalan Pasir Puteh AT & Associates 1230 standard will enhance current practice 31650 Ipoh Suite 9, 2nd Floor, Bangunan Universal and promote consistency worldwide.” 44, Jalan Penchala PULAU PINANG 46050 Petaling Jaya Syarikat Cheah Swee Ean 0109 John Kellas, Chairman of the IAASB WILAYAH PERSEKUTUAN 31E Cantonment Road 10350 Penang The ISA, which was developed over a Ken Teh & Co 001801 period of five years, was influenced by the 9th Floor, Wisma Sime Darby WILAYAH PERSEKUTUAN responses to three exposure drafts. The Jalan Raja Laut Yeong & Co 0704 new ISA takes account of regulatory and 50350 Kuala Lumpur A-35-021 Berjaya Times Square standard-setting developments around the Ooi, Khoo & Co 0697 No. 1 Jalan Imbi world, the interests of small entities and Suite 4024, 4th Flr President House 55100 Kuala Lumpur the expectations of various stakeholders, Jln Sultan Ismail including those represented on the IAASB 50250 Kuala Lumpur Consultative Advisory Group. Saffery Champness 0685 Errata John Kellas, Chairman of the IAASB, Suite 1607, Plaza Pengkalan We refer to the column titled, Members’ Update explains: “The new standard clearly ex- Jln Tiong, 3rd Mile Jln Ipoh which was published on page 61 of the October plains the responsibility of the group en- 51100 Kuala Lumpur 2007 issue of Accountants Today. We wish to in- gagement partner to direct and control the form you that under New Registration for Non- group audit, even when component audi- Name Changed Audit Firms, KV Chong and Co. is registered in Sabah and not as printed. tors may be involved. It responds to public SELANGOR DARUL EHSAN expectations for continuous improvement The error is regretted. Kwong & Wong 001908 in auditing standards. The project has not (Previously known as W.S.F. & Associates) been an easy one, but we are confident that Unit 913, Block A4 the standard will enhance current practice Leisure Commerce Square and promote consistency worldwide.” AT 9 Jalan PJS 8/9, Bandar Sunway 46150 Petaling Jaya ISA 600 (Revised and Redrafted) can be down- Tel: 03-7877 7440 Fax: 03-7877 4430 loaded free-of-charge from the IFAC online e-mail: [email protected] bookstore at www.ifac.org/store.

November 2007 • ACCOUNTANTS TODAY 55 Members Update

Loke Sau Yeen 28144/CA Wan Fathiyah Binti Wan Chik 28109/CA Registration of Lim Su May 28126/CA Taib Iqbal Bin Mohamad 28094/CA Nur Hanani Binti Abdullah 28147/CA Mohd Zaini Bin Mohamed Hussin 28100/CA Accountants Sabah Wan Kamarudin Bin Wan Omar 28101/CA AS AT 17 SEPTEMBER 2007 Dian Melisa Binti Firdaus 28076/CA Zulfikhar Bin Zainul Abidin 28139/CA Tan Shuk Wai 28087/CA Rohaidah Binti Abdullah 28088/CA The following persons are now entitled to use Anne @ Janet Binti Venantius 28012/CA Faridah Binti Mustapha 28137/CA the word ‘Accountant’ upon their admission to Soo Yee Lieh 27982/CA Wong Sook Meng 28093/CA the Malaysian Institute of Accountants, in ac- Mok Sze Ping 28011/CA Norhana Binti Abdul Razak 28134/CA cordance with Section 22 & 23 of the Accoun- Jamila Binti Alang 28149/CA Lim Ee Vone 28131/CA tants Act 1967. Joan John Han 28150/CA Muhammad Zubaidi Bin Razali 28129/CA CA — Chartered Accountants Sarawak Sabina Binti Saran 28125/CA AM — Associate Members Kuan Yung Chien 28099/CA Hasnawinee Binti Mohd Nawi 28113/CA Parveen Kaur Khaira 27997/CA Sharifah Norhafiza Bt Syed 28123/CA LA — Licensed Accountants Haja Muhaideen Bin Shahrul Nizam Bin Jamil 28116/CA MALAYSIA Mohamed Yoosuf 28095/CA Fararenee Binti Ridzwan Ash 28120/CA Johor Darul Takzim Ling Pau Pau 28124/CA Lim Hwee Giap 28117/CA Wong Chan Chong 28085/CA Sharifah Rodziah Bt Sayeed Aman 27996/CA Ng Lay Liang 28103/CA Kee Hui Hui 28071/CA Nurkartini Binti Shafie 28121/CA Tan Hai Huat 28151/CA Lee Su Ping 28001/CA Tam Wan Teing 28008/CA Sharipah Binti Ab Rashid 28074/CA Chng Hain Gyap 28081/CA Kong Chalk Wei 28153/CA Khoo Poh Liy 28084/CA Suhadah Binti Omar 28039/CA Hii Leh Min 28097/CA Hew Yoke Chew 28156/CA Kedah Darul Aman Selangor Darul Ehsan Chow Mei Yen 28072/CA Mohamad Najib Bin Othman 27969/CA Khoo Peck Ching 28054/CA Sharon Chiam Mei Ling 28070/CA Nor Riyana Binti Ramli 27979/CA Norazizah Binti Jaafar 28043/CA Anjilana @ Anjilina Binti Anthony 28152/CA Kelantan Darul Naim Sarawati Binti Mad Shah 27986/CA Lim Kwee Chen 28078/CA Razana Juhaida Binti Johari 28013/CA Lim Ah Kuan 27972/CA Jacob A/L K.T George 28143/CA Marjohnny Shafflan Bin Marjohan 27991/CA Heng Chee Yang 28061/CA Leong Sook Fong 28142/CA Melaka Suhartila Binti Soid 27976/CA Arnold Kwan Poon Keong 28068/CA Lee Siang Ling 28145/CA Teh Hai Chuan 28053/CA Shahrulanuar Bin Ishak 28067/CA Surayahani Binti Ahmad 28041/CA Lily Cheah Chieu Suan 28058/CA Lee Jin Fong 28080/CA Siti Zulaikha Binti Zaiton 28044/CA Ngoh Hui Chen 27967/CA Geok Chin Yee 28082/CA Lee Swee Yun 28146/CA Jothi Malar A/P Arumugam 28060/CA Yean Wai Nye 28083/CA Mohd Hairizan Bin Zaharuddin 28040/CA Roslaili Binti Jelani 28042/CA Terengganu Darul Iman Negeri Sembilan Darul Khusus Sabri Bin Alias 27973/CA Hasmidar Binti Adam 28069/CA Mohd Hazimin Bin Yahya 28130/CA Euzanin Binti Yaacob 28059/CA Mohd Azrul Bin Razak 28056/CA Leong Sik Yin 28132/CA Noraini Binti Zainal 28057/CA Wilayah Persekutuan Elmi Fariza Binti Mokhtar 28098/CA Ahmad Irwan Bin Baharuddin 27975/CA Per Bee Sim 28155/CA Shobalani A/P Ramalingam 28148/CA Suzana Binti Mior Musa 28032/CA Oh En Ny 28119/CA Salmah Binti Amanullah Khan 28002/CA Ling Jia Jing 28010/CA Hang Fong Yin 28127/CA Teh Ching Hai 28154/CA Noor Rohin Binti Awalludin 28009/CA Wong Siew Kiat 28128/CA Subhah Binti Abdul Wahab 28064/CA Aniza Binti Md Din 28016/CA Ng Tsing Chuan 28133/CA Pahang Darul Makmur Mohd Afnizam Bin Mohd Ross 28019/CA Nikhil Mukherjee A/L Mukherjee 28122/CA Kok Hooi Tin 28102/CA Lim Aing Beng 28020/CA Parminah Binti Paijan 27970/CA Aniza Binti Abdul Rani 28027/CA Nik Abdullah Sani Bin Nik Mohamed 28021/CA Lee Choy Wan 28136/CA Soh Chun Wah 28037/CA Koh Siew Cheng 28022/CA Tan Chor Beng 27980/CA Perak Darul Ridzuan Foo Beng Hock 27993/CA Looi Choy Wan 27987/CA Manivanan A/L Chetteambram 28024/CA Tee Yan Theng 28031/CA Koh Bee Shih 28138/CA Yim Hui Wen 27995/CA Tee Yeong Foon @ Teo Yeong Foon 27989/CA Norzaimie Bin Abdul Motalib @ Ismail 27985/CA Munirshah Bin Abdul Rahaman 28063/CA Azuan Azly Bin Abu Bakar 28033/CA Mohd Zamri Bin Ali 27984/CA Chai Pei Cheng 27990/CA Md Zulhairy Farid Bin Md Yusop 28034/CA Ameenuddin Bin Khali Kasman 27971/CA Rose Ruzaitun Binti Mohd Yusof 27977/CA Norhafiza Bt Mohd Salim 28035/CA Tan Kwang Hong 27983/CA Nurul Syeila Idura Binti Yusoff 28046/CA Winston Ngoh Hon Kuan 27998/CA Hoong Heng Choy 27981/CA Aftar Bin Mohd. Ali 28048/CA Chong Gan Leng 28038/CA Erna Dewi Binti Nahril Kardinal 28003/CA Wong Siew Yian 28066/CA Badrul Hisham Bin Hussein 27994/CA Noor Aza Bt Zainol Abidin @ Ab 28141/CA Pulau Pinang Roziela Binti Mohd Salleh 28014/CA Siti Zubaidah Binti Ismail 28140/CA Yuvaraj A/L Ganesan 27999/CA Chea See Khee 27992/CA Anas Hafiz Bin Aminudin @ Ashaari 27978/CA Heah Chi Ling 27968/CA Norasikin Binti Mahmod 28005/CA Wan Nadiah Farihah Binti Wan 27988/CA Michael Gim Tah Fatt 28006/CA Mohamed Nazim Bin Abdul Rahman 28135/CA Venny Tay Hoong Lian 28079/CA Elya Wirdati Binti Md Nasir 28157/CA Shahril Bin Mokhtar 28089/CA Saw Sook Hoon 28110/CA Teh Sui Fen 28075/CA Siti Zarina Binti Mohd Razak 28090/CA Siow Huey Chet 28028/CA Soo Hoo Mei Fong 28086/CA Aida Binti Junaidi 28091/CA Luah York Chan 28029/CA Gopal Krishna A/L Devadev 28000/CA Marliza Binti Mohammed Ali 28092/CA Ida Amira Binti Ab Rahim 28030/CA

56 ACCOUNTANTS TODAY • November 2007 Members Update

Norisah Binti Abdul Karim 28096/CA Chin Chun Hau 22797 Wan Md Husni Bin Wan Husain 22991 Mak Jee Yan 28036/CA Noor Aizzah Bt Ismail 17367 Kuo Yew Chee 12842 Law Yean Nee 28025/CA Lim Peng Leong 1968 Mohd Ariffin Marzuki 2652 Berlinda Soo Ching Ching 28047/CA Amizi Shahrulizan Bin Alias 17914 Lui Soek Kuen 14631 Syed Idrus Bin Syed Ali 28104/CA Georgia Tan Ruby 12214 Hu Hun Hui 28049/CA Zul Amali Bin Mahayuddin 16690 Lim Swee Aun 28050/CA Ng Tek Seng 21367 Resignation of Low Mei Kheng 28051/CA Noraini Ibrahim 5033 Low Yong Lim 28052/CA Kang Guat Eng - Grace 4082 Accountants Geh Wan Siang 28077/CA Liew Lee Wen 9220 AS AT 17 SEPTEMBER 2007 Lai Chze Wei 28055/CA Tan Hong Huat 6204 Muhammad Asrar Bin Zulkifli 28073/CA Low Chui Ming 11457 Saw Thiam Sin @ Soh Thiam Sin 4120 Chu Kok Leong 28045/CA Tan Tiang Guan 12261 Liew Hin Choy, Edwin 6145 Nazzilawati Binti Nazeri 28065/CA Kamarudin bin Ahmad 10165 Francis Gautier 5330 Tan Ciew Hoon 28118/CA Ng Siaw Ching 21036 Tai Swie San 12432 Julian Yeoh Yun Kiat 28007/CA Latifah Ainun Binti Ab. Rahman 19172 Liz Hash Hashim 10595 Megat Noorshani Bin Megat Nordin 28114/CA Phoon Fu Pong 23152 Yap Bee Lan 9509 Normuna Azalina Bt Isnin 28112/CA Wang Shin Mien 20827 Goh Wan Im 8905 Ong Pei Lin 28111/CA Nor Yati Ahmad 20117 Goh Wan Sze 11005 Mohd Nazli Bin Abd Majid 28026/CA Sim Kwang Gek 16571 Wee Bing Hok 3148 Rosmawa Binti Yusuf 28015/CA Lim Huey Miin 17952 Lim Kee Sun 23691 Siti Fatimah Binti Rosman 28004/CA Tey Say Yong 23242 Felina Lee Siew Im 11130 Tan Keng Ping 28017/CA Wong Ying Kin 2790 Low Chui Ming 11457 Siow Lee Tau 28018/CA Wong Yu Sun 7726 Heng Kwoo Seng 2865 Quek Ying Chau 28108/CA Mohd Hussainel Bin Jerai 17234 Yow Ngan Chee 1533 Surida Binti Shaharuddin 28107/CA Tan Kian Peng 20613 Chai Siew Fong 25613 Muhamad Iri Azwan Bin Alang Ibrahim 28106/CA Nazariah Binti Abdul Karim 28105/CA Li Kuan Wai 28023/CA YTL CORPORATION BERHAD SINGAPORE (Co. No. 92647-H) Singapore Loo Keat Choon 27974/CA We are inviting candidates for the position of: Chan Mei Ying 28115/CA INTERNAL AUDIT EXECUTIVE Lau Kok Liang 28062/CA Responsibilities: • Conduct and document audit fieldwork with a view to appraise the adequacy Readmission of and effectiveness of the system of internal controls and compliance with applicable policies and procedures. Accountants • Highlight risk gaps for discussion with Management and recommend corrective measures. AS AT 17 SEPTEMBER 2007 • Prepare draft audit findings. • Prepare and maintain Audit Programmes. Mohd Johari Jemali 5531 Lo Shii Chang 6927 Requirements: Aeren Teo 7881 • A recognised degree or professional qualification in Accounting/Finance. Syarfiza Binti Md Salleh 23997 • Minimum 4 years of audit experience preferably in public-listed companies. Poon Onn Yuen 6322 • Sound knowledge of internal audit and internal control principles/practices. Nor Hisham Bin Mohd Fakeh 13423 • Good communication and interpersonal skills with proficiency in verbal and written English. Sutini Binti Sumanan 18749 • Strong analytical skill and meticulous with details. Amran Bin Ahmad 21465 • Mature, flexible and able to work independently. Ayu Binti Teh 16333 • A team player with a high level of initiative and commitment. Nurul Ain Abdul Latiff 15784 • Applicants should be Malaysian citizens or hold relevant resident status. Lim Siew Chyuan 1326 • Candidate will be based in Kuala Lumpur but travel within Malaysia may be Assaffal @ Samsul Kamal Bin P. Alian 20924 required for work engagements. Leong Yew Loong 9550 Fam Chye Soon Raymond 6333 Interested candidates are invited to send their applications via e-mail or write in to: Niap Tien Foo Damian 15533 Ang Chu San (MIA No.: 21255) Foo See Feng 10037 Human Resource Department Lim Kok Heng 22576 YTL Corporation Berhad Chen Voon Hoe 16996 3rd Floor, Yeoh Tiong Lay Plaza Tan Hoe Ang 10231 55 Jalan Bukit Bintang Siao Choon Sing Brian 11298 55100 Kuala Lumpur Closing Date: 30 November 2007 Chin Kah Kit 17876 e-mail: [email protected] (Only shortlisted candidates will be notified) Chay Seong Cheng 18704

November 2007 • ACCOUNTANTS TODAY 57 ACCOUNTANTS’ CORNER … Counting on Humour

Making a Fortune in its ears upon which the bull got going immedi- ately much to the relief of the dairy authorities who A young man asked an old rich man how he made wanted to know what exactly he whispered. his money. The old guy fingered his expensive wool The answer was, “Nothing man. I just took a chance vest and said, “Well, son, it was 1932. The depth of as a last resort. I whispered, ‘Bloody fool you are the Great Depression. I was down to my last nickel. brought here as a professional not a consultant!’” I invested that nickel in an apple. I spent the entire day polishing the apple and, at the end of the day, I sold the apple for ten cents. The Drinking, gambling next morning, I invested those ten cents in and golf … two apples. I spent the entire day polishing The man took out his wallet, extracted two them and sold them at 5:00 pm for 20 cents. dollars and asked a particularly dirty and I continued this system for a month, by the shabby-looking bum, “If I give you this money, end of which I’d accumulated a fortune of will you take it and buy whisky?” “No, I stopped $9.80. Then my wife’s father died and left us drinking years ago,” the bum said. “Will you two million dollars.” use it to gamble?” “I don’t gamble.” “Will you spend the money on greens fees at a golf Stud Bull course?” “Are you MAD? I haven’t played A dairy imported a much acclaimed stud golf ever!” bull from New Zealand, which was observed The man said, “Well, I’m going to give you ten dol- to be a non-performer from day one. The authorities lars & going to take you to my home. I just want my got worried and finally an expert was summoned who wife to see what a man looks like who’s given up drink- made studies from various angles. His return ticket ing, gambling and golf!” having already been booked, finally he took a chance. He approached the bull and whispered something New Business A new business was opening and one of the owner’s Top 10 reasons to study Economics friends wanted to send flowers for the occasion. They arrived at the new business site and the owner 1 Economists are armed and dangerous: “Watch out for our invis- read the card; it said “Rest in Peace”. The owner ible hands.” was angry and called the florist to complain. 2 Economists can supply it on demand. After he had told the florist of the obvious mistake and how angry he was, the florist said. “Sir, 3 You can talk about money without ever having to make any. I’m really sorry for the mistake, but rather than get- 4 You get to say “trickle down” with a straight face. ting angry you should imagine this: somewhere there 5 Mick Jagger and Arnold Schwarzenegger both studied econom- is a funeral taking place today and they have flowers with a note saying, “Congratulations on your new lo- ics and look how they turned out. cation”. 6 When you are in the unemployment line, at least you will know why you are there. Dress Code at Office 7 If you rearrange the letters in “ECONOMICS”, you get “COMIC It is advised that you come to work dressed according NOSE”. to your salary. 8 Although ethics teaches that virtue is its own reward, in econom- • If we see you wearing Prada shoes and carrying a Gucci bag, we assume you are doing well finan- ics we get taught that reward is its own virtue. cially and therefore do not need a raise. 9 When you get drunk, you can tell everyone that you are just re- • If you dress poorly, you need to learn to manage searching the law of diminishing marginal utility. your money better, so that you may buy nicer clothes and therefore do not need a raise. 10 When you call 1-900-LUV-ECON and get Kandi Keynes, you will • If you dress just right, you are right where you have something to talk about. need to be and therefore do not need a raise. AT

58 ACCOUNTANTS TODAY • November 2007 Calendar of Professional Education Programmes PLEASE CPE TOWN DATE TICK TITLE VENUE ✔ HOURS Kuala 5-6 Nov Enterprise-Wide Risk Management Practice Today Concorde KL 16 Lumpur 12-13 Nov NATIONAL ACCOUNTANTS CONFERENCE 2007 KL Convention Centre 16 and 15-16 Nov Inventory Control and Stock Take Workshop for Finance Managers Hilton PJ 16 Selangor 21-22 Nov Loan Syndication: Get Ready for Banks to Finance Construction Projects Concorde KL 16 22 Nov "Taxation Issues and Planning for Property Developers Workshop Series Hilton PJ 8 Series 1: Property Developers and Contractors - Tax Compliance Issues" 22-23 Nov Financial Reporting Standards in Malaysia Sheraton Subang 16 23 Nov "Taxation Issues and Planning for Property Developers Workshop Series Hilton PJ 8 Series 2: Property Developers and Land Owners - Tax Cases" 26-27 Nov Understanding the Accounting Standards In Preparing Consolidated Financial Statements Hilton PJ 16 28 Nov Preparation of Financial Statements Concorde KL 8 3 Dec Forensic Accounting Investigations Concorde KL 8 3 Dec Financing Corporate Growth - Tax Considerations Hilton PJ 8 3-4 Dec Financial Reporting Standards in Malaysia - Salient Features Concorde KL 16 4 Dec Company Law and Practice Concorde KL 8 4 Dec Tax Incentives and Double Deductions Hilton PJ 8 4-5 Dec The Employment Act 1955 — Understanding, Interpretation, Application and Compliance Concorde KL 16 4-6 Dec Practical Accounting Cyrstal Crown Hotel PJ 0 5-Dec Preparation of Cash Flow Statements Concorde KL 8 5-6 Dec Corporate Image for a Competitive Edge Concorde KL 16 6-7 Dec Recent Developments in Malaysian Financial Reporting Standards Concorde KL 16 6-7 Dec Corporate Profitability Through Effective Costing Techniques and Practices Hilton PJ 16 6-7 Dec Deferred Taxation Concorde KL 16 7 Dec "Taxation Issues and Planning for Property Developers Workshop Series Concorde KL 8 Series 2: Property Developers and Land Owners — Tax Cases" 10 Dec Public and Advance Rulings by IRB Hilton PJ 8 10-Dec Audit of Construction Projects Concorde KL 8 10-11 Dec Public Practice Programme Hilton PJ 16 13 Dec Field Audit and Tax Investigation Concorde KL 8 13-14 Dec Understand How Banks Approve and Structure Loans Hilton PJ 16 13-14 Dec Better Grammar for Business Writing Armada Hotel PJ 16 17-18 Dec Corporate Frauds - Law and Controls Melia KL 16 17-18 Dec Advanced Issues in Preparation of Group Financial Statements Concorde KL 16 17-18 Dec Speed Reading for Professionals Cyrstal Crown Hotel PJ 16 18-19 Dec Managing ERP or IT Projects Hilton PJ 16 19 Dec Impairment of Assets Concorde KL 8 8-9 Jan 08 Mixed Development Construction Projects The Seri Pacific 16 15 Jan 08 Understanding and Managing Contracts Concorde KL 8 16-17 Jan 08 Understanding the Accounting Standards In Preparing Consolidated Financial Statements Hilton PJ 16 17 Jan 08 Company Law and Practice Armada Hotel PJ 8 Alor Setar 20-21 Nov Recent Developments in Malaysian Financial Reporting Standards StarCity Hotel 16 Penang 6 Nov Financing Corporate Growth — Tax Considerations Traders Hotel 8 7 Nov Tax Incentives and Double Deductions Traders Hotel 8 19 Nov Audit Documentation Traders Hotel 8 27 Nov "Taxation Issues and Planning for Property Developers Workshop Series Traders Hotel 8 Series 2: Property Developers and Land Owners - Tax Cases" 29 Nov GLOBAL BUSINESS CONFERENCE 2007 Traders Hotel 8 3 Dec New Uniform Customs and Practices for Documentary Credits Traders Hotel 8 10-11 Dec Corporate Profitability Through Effective Costing Techniques and Practices Evergreen Laurel Hotel 16 12 Dec Company Law and Practice Traders Hotel 8 18 Dec Customs Facilities for Importers and Exporters Traders Hotel 8 Ipoh 5 Nov Basic Principles of Deferred Taxation Casuarina Hotel 8 14-15 Jan Accounting for Assets Impiana Casuarina 16 Melaka 15 Nov Half-Day Seminar on Latest Updates of Companies Act 1965 Renaissance Melaka Hotel 4 Johor Bahru 5 Nov New Uniform Customs and Practices for Documentary Credits The Puteri Pacific JB 8 14 Nov Half-Day Seminar on Latest Updates of Companies Act 1965 Hyatt Regency JB 4 15 Nov Auditors' Report The Puteri Pacific JB 8 19-20 Nov Corporate Profitability Through Effective Costing Techniques and Practices Hyatt Regency JB 16 21 Nov Preparation and Presentation of Financial Statements The Puteri Pacific JB 8 22-23 Nov Project Management for Finance Managers Mutiara JB 16 27 Nov Customs Facilities for Importers and Exporters Hyatt Regency JB 8 28-29 Nov Understanding the Accounting Standards In Preparing Consolidated Financial Statements Hyatt Regency JB 16 30 Nov "Taxation Issues and Planning for Property Developers Workshop Series Hyatt Regency JB 8 Series 2: Property Developers and Land Owners - Tax Cases" November 2007 • ACCOUNTANTS TODAY 59 Calendar of Professional Education Programmes PLEASE TICK CPE TOWN DATE ✔ TITLE VENUE HOURS

Johor Bahru 6-7 Dec Loan Syndication: Get Ready for Banks to Finance Construction Projects Hyatt Regency JB 16 10-11 Dec E-mail and Business Letter Writing Skills Mutiara JB 16 13 Dec Financing Corporate Growth — Tax Considerations The Puteri Pacific JB 8 14 Dec Tax Incentives and Double Deductions The Puteri Pacific JB 8 17-19 Dec Practical Accounting Hyatt Regency JB 0 Kuantan 22 Nov Auditors' Report Vistana Hotel Kuantan 8 26 Nov Half Day Seminar on Latest Updates of Companies Act 1965 MS Garden Kuantan 4 Kuching 1 Nov "Taxation Issues and Planning for Property Developers Workshop Series Hilton Kuching 8 Series 1: Property Developers and Contractors - Tax Compliance Issues" 19-21 Nov Practical Accounting Holiday Inn Kuching 0 26-27 Nov Practical Auditing Holiday Inn Kuching 16 4 Dec Audit Documentation Holiday Inn Kuching 8 10 Dec Half Day Seminar on Latest Updates of Companies Act 1965 Hilton Kuching 4 12-13 Dec Introduction To Financial Reporting Standards in Malaysia Holiday Inn Kuching 16 Sibu 11 Dec Half Day Seminar on Latest Updates of Companies Act 1965 Tanahmas Hotel 4 Miri 13 Dec Half Day Seminar on Latest Updates of Companies Act 1965 ParkCity Everly Hotel 4 Bintulu 12 Dec Half Day Seminar on Latest Updates of Companies Act 1965 ParkCity Everly Hotel 4 Labuan 3 Dec Half Day Seminar on Latest Updates of Companies Act 1965 Sheraton Hotel Labuan 4 Kota 15-17 Nov Practical Accounting Promenade Hotel 0 Kinabalu 26-27 Nov Advanced Issues in Preparation of Group Financial Statements Hyatt Regency Kinabalu Hotel 16 3 Dec Audit Documentation Shangri-La Tanjung Aru 8 4 Dec Half Day Seminar on Latest Updates of Companies Act 1965 Hyatt Regency Kota Kinabalu 4 10-11 Dec Deferred Taxation Shangri-La Tanjung Aru 16 Tawau 5 Dec Half Day Seminar on Latest Updates of Companies Act 1965 Belmont Marco Polo 4 Sandakan 6 Dec Half Day Seminar on Latest Updates of Companies Act 1965 Sabah Hotel 4 MAICSA COURSES Kuala 3 Dec Related Party Transactions MAICSA 6 Lumpur MCSB COURSES Kuala 19-20 Nov Microsoft Word 2000 (Advanced) MCSB, KL 16 Lumpur 21-22 Nov Microsoft Excel 2000 (Advanced) MCSB, KL 16 23 Nov Microsoft PowerPoint 2000 (Advanced) MCSB, KL 8 26-28 Nov Microsoft Access 2000 (Advanced) MCSB, KL 24 15-16 Nov Microsoft Project 2000 (Basic/Intermediate) MCSB, KL 16 3-4 Dec Microsoft Word 2000 (Basic and Intermediate) MCSB, KL 16 17-18 Dec Microsoft Word 2000 (Advanced) MCSB, KL 16 5-6 Dec Microsoft Excel 2000 (Basic and Intermediate) MCSB, KL 16 17-18 Dec Microsoft Excel 2000 (Advanced) MCSB, KL 16 7 Dec Microsoft PowerPoint 2000 (Basic and Intermediate) MCSB, KL 8 14 Dec Microsoft PowerPoint 2000 (Advanced) MCSB, KL 8 10-11 Dec Microsoft Access 2000 (Basic and Intermediate) MCSB, KL 16 27-29 Dec Microsoft Access 2000 (Advanced) MCSB, KL 24 7 Dec Introduction to Networking MCSB, KL 8 7 Dec Introduction to Internet MCSB, KL 8 13-14 Dec Microsoft Project 2000 (Basic/Intermediate) MCSB, KL 16 27-28 Dec Designing Web Pages with MS FrontPage MCSB, KL 16

PENTAWISE COURSES 13-14 Dec Microsoft Excel Functions and Formulas PentaWise Sdn Bhd Midvalley City, KL 16 17 Dec Analysing Financial Data with Microsoft Excel PentaWise Sdn Bhd Midvalley City, KL 8

Yes! I would like to know more about the programmes ticked above. Please send the information to:

Contact Person:

Organisation: FOR FURTHER INFORMATION PLEASE MAIL, FAX OR E-MAIL TO: Malaysian Institute of Accountants Address: Dewan Akauntan, 2 Jalan Tun Sambanthan 3 Brickfields, 50470 Kuala Lumpur Tel: +603-2279 9200 Fax: +603-2273 5167 Tel: Fax: e-mail: [email protected] Homepage: www.mia.org.my 60 ACCOUNTANTS TODAY • November 2007