What are the ideas behind the establishment of Malaysian Institute of Accountants (MIA)? (5marks)
MIA is a statutory body established under the Accountants Act, 1967 to regulate and develop the accountancy professions in Malaysia. MIA’s responsibilities include education and quality assurance as well as enforcement which are carried out to ensure that the credibility to the profession is maintained and that public interest is continuously upheld. Its regulatory role is carried out through the following approaches:- * Having an effective and competitive assessment framework in admitting members into MIA to ensure that the profession is able to meet public expectations where its human capital is concerned; * Meeting the education and development needs of members as part of a commitment to help members be knowledgeable and maintain their relevance in today’s market; * Implementing professional standards and practices based on internationally accepted guidelines as standards and By-Laws for members to comply within maintaining the integrity of the profession; * Having in place a robust disciplinary system for those who fail to comply with this standards BY-Laws; * To enhance the status of members.
Briefly explain the following users of accounting information:
Any person, company, or other institution that owns at least one share in a company. A shareholder may also be referred to as a "stockholder”. Shareholders are the owners of a company. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly.
A person doing work for a company is an employee if the employer not only controls the person’s work output, but also the manner in which the work is performed. An employee is paid through the payroll system; the employing business is responsible for withholding taxes and paying matching tax amounts where applicable.
A lender is an entity that makes cash loans to other entities or individuals in exchange for either a fixed or variable interest rate.
How Bookkeeping differ from Accounting? (5marks)
Bookkeeping| Differences| Accounting|
Bookkeeper| Performed by| Accountant|
Accountants| Result used by| * Internal Users (Management employed) * External Users (owners, creditors, banks..)| * Single-entry bookkeeping system * Double-entry bookkeeping system| Method used, Principle applied| * GAAP * MFRS| Record, classify and summarize transactions | Purpose| Internet prepare finance statement| Is responsible for maintaining the "business checkbook", much like a personal checkbook. They record routine money transactions like customer payments into a "cash receipts journal" and checks to vendors into a "cash disbursement journal."| Responsibilities| Is responsible for the design and management of the financial systems that bookkeepers use. They prepare monthly financial statements and tax returns at year end. | The process of recording, in chronological order, the daily transactions of a business entity. It forms part of the accounting information system.| Process| The process of recording, classifying, summarizing, reporting, analyzing and interpreting the financial condition and performance of a...