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Chap Std Setting In Malaysia 31 Jan

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Chap Std Setting In Malaysia 31 Jan
Standard Setting In Malaysia
Learning Objectives

i. Understand the development of accounting standards in Malaysia. ii. Describe the structure and objectives of Malaysian Accounting Standards Board. iii. Describe the structure and objectives of the International Accounting Standards Board. iv. Explain the issues related to convergence of accounting standards.
v. Explain the relationship between Malaysian Accounting Standards Board to International Accounting Standards Board in relation to convergence of accounting standards.

1.0 Introduction

Accounting standards refer to a set of standards stating how particular types of transactions and other events should be reflected in financial statements. These standards are issued by accounting standard setters. The application of accounting standards in the preparation and presentation of financial statements is generally govern by regulatory bodies and/or professional accounting bodies in a particular country.

The emergence and development of multinational concerns and the growth of international financial markets, among other factors, are influencing the preparation of financial statements beyond national borders. Many countries around the world that are using their national Generally Accepted Accounting Principles (GAAP) are adopting the International Financial Reporting Standards (IFRS) in the preparation and presentation of their financial statements. The IFRSs are issued by International Accounting Standards Board (IASB) and the adoption of IFRSs is having a growing influence on national accounting requirements and practices. This chapter discusses the adoption of IFRSs and other aspects of standard-setting environment in Malaysia.

2.0 Development of Financial Reporting in Malaysia

The demand for corporate information by capital providers and other stakeholders, such as employees, suppliers, customers and other agents has shaped the financial reporting environment in Malaysia. These parties require
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