Professionalisation of Accounting: Part 1

Part 1: Where we are now

The accounting profession has come a long way in Malaysia, since our independence on the 31^st of August 1957 (or 16^th September 1963 if you include West Malaysia). We have grown from being a loose gathering of bean-counters to a well-organised, highly skilled batch of knowledgeable professionals.

In Malaysia, professional accounting is governed by the MIA (Malaysian Institute of Accountants), which was set up in the 1980s. The MIA has regulatory powers over the accounting profession as dictated by the terms set within the Accountants Act, 1967.

Prior to the set up of MIA, we have the MICPA (Malaysian institute of certified professional accountants) which was established a year after our independence in 1958. The MICPA has been involved in the training and development of accountants since its inception and remains to be one of the most famous professional bodies here in Malaysia.

Apart from the local certification body, MICPA, Malaysia also recognises the authority held by international accounting bodies such as ACCA, CIMA, ICAEW and the various CPAs from different countries.

Malaysia is home to a robust economy with an organised structure as shown through the establishment of the KLSE, now known as Bursa Malaysia and formerly known as Malayan Stock Exchange when it was first set up in the 1960s. The KLSE is closely supported by the Securities Commission, who oversees the dealings of companies listed on the stock exchange and by the authorities in Bank Negara.

In such a robust economy, there are plenty of opportunities for the accounting profession to thrive. Proof can be found in the setting up of the MASB or the Malaysian Accounting Standards Board who issues national accounting standards by virtue of power granted to them via the Financial Reporting Act 1997. The MASB has announced that Malaysia will be in full compliance with the IFRS by 2012. Convergence, people!

PART 2 HERE!