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Notice of Meeting ……………………………………………………………… 2
Objects and Mission…………………………………………………………… 4
Council 2006/2007 …………………………………………………………… 6
Committees 2006/2007 ……………………………………………………… 7
President's Statement ………………………………………………………… 19
Report of the Council ………………………………………………………… 56
Balance Sheet ………………………………………………………………… 58
Income Statement …………………………………………………………… 59
Statement of Recognised Gains & Losses ………………………………… 60
Cash Flow Statement ………………………………………………………… 61
Notes to the Financial Statements…………………………………………… 62
Statement by Council Members ……………………………………………… 74
Statutory Declaration ………………………………………………………… 74
Report of the Auditors to Members ………………………………………… 75
Report and Financial Statements of MACPA Educational Trust Fund …… 100
Form of Proxy ………………………………………………………………… 123
79 …………………… Laporan Majlis
81 …………………… Kunci Kira-kira
82 …………………… Penyata Pendapatan
83 …………………… Penyata Keuntungan dan Kerugian yang Diiktiraf
84 …………………… Penyata Aliran Tunai
85 …………………… Nota-nota kepada Penyata Kewangan
97 …………………… Penyata oleh Ahli-ahli Majlis
97 …………………… Akuan Berkanun
98 …………………… Laporan Juruaudit kepada Ahli-ahli
112 …………………… Laporan dan Penyata Kewangan Tabung Amanah Pendidikan MACPA
123 …………………… Borang Proxy
C O N T E N T S
KANDUNGAN
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ANNUAL REPORT �006
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the Forty-ninth Annual General Meeting of the Institute will be held at Bilik Meranti, Level 4, Seri Pacific Hotel, Jalan Putra, Kuala Lumpur on June 23, 2007 at 10:00 a.m. for the following purposes:
1. To receive and adopt the Report of the Council and the Financial Statements of the Institute for the year ended December 31, 2006.
2. To elect the following nominees as Council members:
Abdul Jabbar Abdul Majid
Dato’ Ahmad Johan bin Mohammad Raslan
Beh Tok Koay
Datin Fadzilah bte Saad
Loh Lay Choon
Sukanta K Dutt
Tan Ghee Kiat
Venkatramanan Viswanathan
3. To appoint two auditors.
4. Any other business.
By order of the Council
Foo Yoke Pin (Mr)Secretary
Kuala LumpurJune 1, 2007
Note:
A member entitled to attend and vote at this meeting is entitled to appoint a proxy to attend and vote in his stead. A proxy must be a member of the Institute. The instrument appointing the proxy must be deposited at the office of the Institute at No. 15, Jalan Medan Tuanku, 50300 Kuala Lumpur, not less than 48 hours before the time set for holding the meeting.
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ANNUAL REPORT �006
1. Pursuant to bye-law 89, the following are lists of members nominated for membership of the Council and for appointment as auditors :
i. In accordance with bye-law 5, the following Council members shall retire at the Annual General Meeting:
Abdul Jabbar Abdul Majid
Dato’ Ahmad Johan bin Mohammad Raslan
Beh Tok Koay
Chin Kwai Fatt
Datin Fadzilah bte Saad
Loh Lay Choon
Sukanta K Dutt
Tan Ghee Kiat
Venkatramanan Viswanathan
Pursuant to bye-law 6, these Council members are deemed to be nominated for re-election except for Chin Kwai Fatt who has signified in writing that he does not desire to offer himself for re-election.
ii. The following nominations have been receive for election to the Council in accordance with bye-law 7:
Seow Yoo Lin
Lee Tuck Heng
iii. In accordance with bye-law 120, the following members shall retire as auditors of the Institute at the Annual General Meeting. Pursuant to bye-law 121, they are deemed to be nominated for re-appointment as auditors for the ensuring year:
Siew Kah Toong
Datuk Tan Kim Leong, JP
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The principal objects of the Institute as set out in the Memorandum and Articles of Association are as follows:
♣ To advance the theory and practice of accountancy in all its aspects.
♣ To recruit, educate, train and assess by means of examination or otherwise a body of members skilled in these areas.
♣ To preserve at all times the professional independence of accountants in whatever capacities they may be serving.
♣ To maintain high standards of practice and professional conduct by all its members.
♣ To do all such things as may advance the profession of accountancy in relation to public practice, industry, commerce, education and the public service.
Objects of the Institute
To enhance the value and distinctiveness of the Certified Public Accountant (CPA) qualification.
♣
To promote high standards of professional conduct and technical competence of members to safeguard public
interest.
♣
To provide quality professional education and training thereby creating a competitive advantage for members.
Our Mission
ANNUAL REPORT �006
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Council Members for 2006/2007
Seated - left to right:Dato' Abdul Halim Mohyiddin (President)Dato' Nordin Baharuddin (Vice-President)
Standing - left to right:Datuk Robert Yong Kuen LokeLoh Lay ChoonTan Ghee Kiat
Left to right:Venkatramanan ViswanathanNg Kim TuckDato' Yeo HowDatin Hjh Fadzilah bte Saad
Left to right:See Huey Beng
Sam Soh Siong HoonDato' Ahmad Johan Mohammad Raslan
Mohamed Raslan Abdul RahmanDato' Hj Maidin Syed Ali
Not in photograph: Abdul Jabbar Abdul Majid, Datuk Dr Abdul Samad Hj Alias, Ahmad Mustapha Ghazali, Chin Kwai Fatt, Foo Yoke Pin (Chief Operating Officer), Ho Heng Chuan, Lim Tian Huat, Poon Yew Hoe, Tan Chin Hock, Dr Veerinderjeet Singh.
Left to right:Goh Lee Hwa
Pushpanathan a/l S A Kanagarayar Abdul Halim Md Lassim
Beh Tok KoayTan Shook Kheng (Executive Director)
Left to right:Peter Lim Thiam KeeSukanta K Dutt
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ANNUAL REPORT 200�
MICPA COUNCIL - 200�/2007 Attendanceat CouncilMeetings
President Dato’AbdulHalimMohyiddin (1987) KualaLumpur 5
Vice-President Dato’NordinBaharuddin (2000) KualaLumpur 2
Members AbdulHalimbMdLassim (2006) Selangor 4(LOA-1) ● ■ AbdulJabbarAbdulMajid (1981) KualaLumpur 2(LOA-2) ● ■ DatukDrAbdulSamadHjAlias (1986) KualaLumpur 0 Dato’AhmadJohanMohammadRaslan (2003) KualaLumpur 2 AhmadMustaphaGhazali (2004) Selangor 2 ● BehTokKoay (1989) KualaLumpur 4 ■ ChinKwaiFatt (2004) KualaLumpur 1 ■ DatinHjhFadzilahbteSaad (1987) KualaLumpur 3 GohLeeHwa (2006) Selangor 3(LOA-1) ■ HoHengChuan (1987) KualaLumpur 0(LOA-1) PeterLimThiamKee (2002) KualaLumpur 2 LimTianHuat (1999) KualaLumpur 0 LohLayChoon (2004) KualaLumpur 4 ■ Dato’HjMaidinSyedAli (2002) Kedah 3 MohamedRaslanAbdulRahman (2002) KualaLumpur 2 NgKimTuck (2005) KualaLumpur 2 PoonYewHoe (1998) KualaLumpur 3(LOA-2) Pushpanathana/lSAKanagarayar (2001) KualaLumpur 4 SamSohSiongHoon (1983) Johor 4 SeeHueyBeng (2006) KualaLumpur 3(LOA-2) SukantaKDutt (1999) KualaLumpur 4(LOA-1) TanChinHock (2002) KualaLumpur 1(LOA-1) TanGheeKiat (1989) KualaLumpur 2 ■ TehCheeGhee(resigned on November 4, 2006) (2002) Selangor 1 DrVeerinderjeetSingh (2004) KualaLumpur 4(LOA-1) VenkatramananViswanathan (1986) Melaka 2 ■ Dato’YeoHow (2003) Selangor 4 ■ DatukRobertYongKuenLoke (1998) KualaLumpur 3
Secretary MsTanShookKheng(resigned on May 31, 2007) MrFooYokePin(appointed on June 1, 2007)
Registered Office No.15,JalanMedanTuanku 50300KualaLumpur
Auditors SiewKahToong DatukTanKimLeong,JP
Penang District Society c/oJ.Ramachandran P.O.Box325,10200Penang
● Denotes Past President
■ Denotes member not in practice
( ) Denotes year in which member first joined Council
LOA Leave of absence
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ANNUAL REPORT 200�
COMMITTEES - 200�/2007
Executive Committee No. of meetings: 4
Attendance
Dato’AbdulHalimMohyiddin(Chairman) 4Dato’NordinBaharuddin 2AbdulJabbarAbdulMajid 2(LOA-1)DatukDrAbdulSamadHjAlias 0(LOA-1)Dato’AhmadJohanMohammadRaslan 3BehTokKoay 4TanGheeKiat 2(LOA-2)DatukRobertYongKuenLoke 4
TermsofReference:-
To identify and implement plans of action on specific issues of current concern affecting members, the Institute andtheaccountancyprofession.
Accounting & Auditing Technical CommitteeNo. of meetings: 3
Attendance
SukantaKDutt(Chairman) 2NgKimTuck(AlternateChairman) 2DatukDrAbdulSamadHjAlias 0AhmadMustaphaGhazali 0LohLayChoon 0VenkatramananViswanathan 2Dato’YeoHow 2
Co-opted MembersChiaKumCheng 2StephenKhoo 1LeeHinKan 0OoiCheeKun 2YMRajaAzmiRajaNazuddin 1StephenOong 1DrSuselaDevi 1DavidSiewKahToong 2RobertTanBunPoo 1
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ANNUAL REPORT 200�
Bank Negara Malaysia Guidelines Working Group
No. of meetings : 0
SukantaKDutt(Convenor)SeowYooLinSooHooKhoonYeanRobertTanBunPoo
MIA-MICPA Joint Working Group on Auditing
No. of meetings: 1 Attendance
Sukanta K Dutt (Co-Chairman) MICPA 1Mohammad Faiz Mohd Azmi (Co-Chairman) MIA 0Ng Kim Tuck MICPA 0 (LOA)Loh Lay Choon MICPA 1Chia Kum Cheng MICPA 0 JosephineEdward BursaMalaysiaBerhad 0Khairudin Ibrahim MIA 1Ng Mi Li MIA 1Stephen Khoo Siong Kee MIA 0Dato’SiowKimLun SecuritiesCommission 0Thomas A Scott MIA 0Robert Tan Bun Poo MICPA 1
MIA-MICPA Joint Working Group on Securities Guidelines
No. of meetings: 3 Attendance
Sukanta K Dutt (Convenor) MICPA 2Loh Lay Choon MICPA 2Ng Kim Tuck MICPA 3Ahmad Shahrul Hj Mohamed MIA 0Chan Kam Chiew MICPA 2Chen Voon Hann MIA 2Chia Kum Cheng MICPA 1 Janice Lee Guat Hoe MIA 0Loh Kok Leong MIA 0Mohammad Faiz Mohd Azmi MIA 2Ng Mi Li MICPA 3Stephen Oong MICPA 2 David Siew Kah Toong MICPA 2Robert Tan Bun Poo MICPA 2David Tan Lye Chong MIA 1Wong Chee Leong MIA 0
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ANNUAL REPORT 200�
Malaysian Insurance Accounting Standards Working Committee
No. of meetings: 0
Datuk Dr Abdul Samad Hj Alias (Chairman) (MICPA)Pushpanathan a/l S A Kanagarayar (MICPA)JessicaChewChengLan (BNM)Chia Kum Cheng (MICPA)Maggie Chong Sook Yin (LIAM)Choong Kooi Wah (MICPA)Ezamshah Ismail (LIAM)K.Komalavalli (BNM)Kang Hak Koon (PIAM)Lee Kok Wai (MICPA)Lee Lai Keong (PIAM)Lim Chong Beng (PIAM)Mohd Adib Ariffin (PIAM)Ng Kim Tuck (MICPA)Ng Yoke Ling (MICPA)Robert Tan Bun Poo (MICPA)Tee Choon Yew (PIAM)Tunku Yaacob Tunku Abdullah (LIAM)Yeo Took Keat (LIAM)
Public Sector Accounting Working Group
No. of meetings: 0
Pushpanathana/lSAKanagarayar(Convenor)
Co-opted MembersAssoProfAzmibHarun Dato’MohammadAididbMohdShariff HjOthmanbinAbdullah Saadatul Nafisah bt Baslir Ahmad TanPohLing,ShirleyWuChihShan
ThetermsandreferenceoftheAccountingandAuditingTechnicalCommitteeareasfollows:
(a) ToformulateauditingandassurancestandardsandotherauditingstatementsforapprovalbyCouncil.
(b) ToprovideinterpretationsandguidanceonMASBstandardsintheformoftechnicalreleases(TR).
(c) ToreviewexposuredraftsandotherconsultationdocumentsissuedbytheMalaysianAccountingStandards Board and the International Auditing and Assurance Standards Board.
(d) To review and provide guidance on statutory financial reporting requirements and listing rules.
(e) Toundertakeresearchincontemporaryaccountingandauditingissuesandwhereappropriate,publishthe research findings in the form of accounting research bulletins (ARB).
(f) To establish and supervise working committees formed to produce recommendations on financial reporting andauditingstandardsandguidelines.
(g) Toliaisewithinternationalbodiesoftheaccountancyprofessiononallmattersofatechnicalnature,concerningor affectingaccountingorauditing.
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ANNUAL REPORT 200�
Administrative & Financial Affairs Committee No. of meetings: 2 Attendance
Dato’NordinBaharuddin(Chairman) 1AbdulJabbarAbdulMajid 0HoHengChuan 1(LOA-1)DatukRobertYongKuenLoke 2
TermsofReference:-
1. ToberesponsibleforthesmoothrunningoftheSecretariat.
2. To be responsible for the preparation of budgets and financial statements of the Institute.
3. To supervise the staff employed by the Institute.
4. ToorganisetheGeneralMeetings,CouncilMeetingsandAnnualDinner.
5. To liaisewith theTrusteesof theMACPAEducationalTrustFundwith regard to themaintenanceof theBuildingandtheadministrationoftheFund.
Commerce & Industry Committee No. of meetings: 1 Attendance
Dato’YeoHow(Chairman) 1AbdulHalimMdLassim 0ChinKwaiFatt 0DatinHjhFadzilahbteSaad 1HoHengChuan 0 DatukRobertYongKuenLoke 0
Co-opted MembersChaiLaiSim 0ChoOiKwan 0ChongKeeHong 0VincentSeow 0
TermsofReference:-
1. To ensure that the interests and views of members in commerce and industry are properly reflected in the Institute’s policies and activities.
2. To develop, in conjunction with other committees of the Institute, such activities as are of interest to members in commerce and industry, particularly in relation to continuing professional development programmes in managementaccountingandothertopics.
3. TodevelopmanagementaccountingandreportingguidelinesforrecommendationtoCouncil.
4. Toprovideaconsultativemediaformembersincommerceandindustry.
5. Toco-ordinateliaisonwithlocal,regionalandinternationalbodiesonallmattersconcerningmanagement accountingandreporting.
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ANNUAL REPORT 200�
Disciplinary Committee No. of meetings: 2Attendance
ChinKwaiFatt(Chairman) 2AbdulJabbarAbdulMajid(AlternateChairman) LOA-2SukantaKDutt 2DrVeerinderjeetSingh 2Dato’YeoHow 0ProfHjAbdulManapSaid 2ChuaSeeHua 2
TermsofReference:-
1. Onreceiptofaformalcomplaint,toinformthedefendantoftheCommittee’sintentiontoconsiderthecomplaint andtohearthecomplaint.
2. Where the committee finds that a complaint has been proved, to take appropriate disciplinary action against the defendant which includes exclusion or suspension from membership in the case of a member and exclusionfromtherelevantregisterinthecaseofaregisteredstudent,censure,reprimand,admonishment or payment of a fine/costs.
3. To give notice of its finding and decision to the defendant.
4. To refer the complaint to the Council for a final decision if no unanimity is reached by the Committee.
5. To report all findings and decisions of the Committee to the Council for recording.
Education & Training Committee No. of meetings: 2 Attendance
Dato’AbdulHalimMohyiddin(Chairman) 2AbdulHalimMdLassim 2DatinHjhFadzilahbteSaad 2LohLayChoon 0Pushpanathana/lSAKanagarayar 2TehCheeGhee(resigned on 04.11.2006) 0DrVeerinderjeetSingh 2
Co-opted MembersProfHjAbdulManapSaid 1Dr Hafiz Majdi Ab. Rashid 0AssoProfDrArfahSalleh 2Datuk Prof Dr Daing Nasir Ibrahim 0Prof Dr Ibrahim Kamal Abdul Rahman 2MrsJoyceYap 1ProfDrJuhariSamidi 2ProfMadyaDrMahamadBinTayib 1AssoProfSusanThoLaiMooi 1 Prof Dr Takiah Mohd Iskandar 0Asso Prof Dr Ibrahim Ali 2DrThillaisundaram 2ProfMadyaDrNormanMohdSalleh 1DrASeetharaman 1AssoProfDrZakariaAbas 1
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ANNUAL REPORT 200�
TermsofReference:-
1. Toorganiseeducationandtrainingprogrammesforstudents.
2. Toplanandadministercontinuingprofessionaldevelopmentprogrammesformembers.
3. Toliaisewithinstitutionsofhigherlearningandotherlocalandoverseasprofessionalorganisationsinmatterspertainingtoeducationandtraining.
4. To evaluate courses/qualifications referred to the Committee by the Membership Affairs Committee for the purpose of student registration and/or exemption from the Institute’s examinations.
5. To regularly review the Institute’s examination syllabus.
6. Todevelopandmaintainalibrarytoprovidereferenceandresearchfacilitiesformembersandstudents.
Examination CommitteeNo. of meetings: 4
Attendance
AbdulJabbarAbdulMajid(Chairman) 4BehTokKoay(AlternateChairman) 3ChinKwaiFatt 2(LOA-1)GohLeeHwa 3MohamedRaslanAbdulRahman 1PoonYewHoe 2SeeHueyBeng 3SukantaKDutt 2(LOA-2)TanGheeKiat 4
TermsofReference:-
1. WithCouncil’sapproval,toissuefromtimetotime,regulationsforthe:-
a) conductoftheexaminations,and
b) eligibilityofstudentstositfortheexaminations.
2. Togivenoticeinwritingtoallstudentswhenentryforexaminationsisopen.
3. WithCouncil’sapproval,toappointandremunerateexaminersandmoderators.
4. TorecommendtoCouncilthefeestobechargedfortheexaminations.
5. Toappointandremunerateinvigilatorsateachexaminationcentre.
6. Toconsiderreportsofexaminersandmoderatorsanddeterminetheexaminationresults.
7. Tonotifystudentsoftheirperformanceattheexaminations.
8. To issue certificates to successful students at each examination.
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ANNUAL REPORT 200�
Financial Statements Review CommitteeNo. of meetings: 2
Attendance
Pushpanathana/lSAKanagarayar(Chairman) 1AbdulHalimMdLassim 2LohLayChoon 1NgKimTuck 0TanChinHock 2VenkatramananViswanathan 1
Co-opted MembersChoongMeiLing 0LeeKeenPong 0(LOA-1)DavidSiewKahToong 1RobertTanBunPoo 2
TermsofReference:-
1. Toenhance thestandardsof theaccountancyprofession inMalaysiabyassistingmembers toensurethat their responsibilities with regard to financial statements are discharged in compliance with statutory requirements and with the published recommendations and standards promulgated by the Institute from timetotime,andwithgenerallyacceptedaccountingprinciplesandauditingpractices.Thisistobedoneby a review of financial statements selected at random by the Committee or referred by a person to the Committeeandbydrawingtheattentionofthememberresponsiblefortheirpreparation,orforreportingonthem,toanyareasinwhichthepresentationorcontentappearstofallshortofsuchcompliance.
2. To respond appropriately to questions and problems submitted to the Institute by members who may have difficulty in complying with the directives of this Committee.
3. As and when appropriate, to refer special items of difficulty or interest to the Council.
4. Where the matter is justified to authorise a member of the Committee to make a complaint to the Investigation CommitteewhereintheopinionoftheFinancialStatementsReviewCommitteedisciplinaryactionshouldbe taken against a member or members of the Institute arising out of the work undertaken by the Financial StatementsReviewCommitteewithinitstermsofreference.
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ANNUAL REPORT 200�
Government Affairs CommitteeNo. of meetings: 3 Attendance
Dato’AhmadJohanMohammadRaslan(Chairman) 3Dato’AbdulHalimMohyiddin 0DatukDrAbdulSamadHjAlias 1AhmadMustaphaGhazali 0LimTianHuat 0Dato’HjMaidinSyedAli 0Pushpanathana/lSAKanagarayar 3
TermsofReference:-
1. TocoordinateliaisonwiththeGovernmentonpoliciesoranyothermatterspertainingtoaccountingandtheprofession.
2. ToestablishandsuperviseliaisoncommitteeswiththeGovernment,itsMinistriesoragenciesinrelationtoCorporateLaw.
3. Tocoordinatereviewsoflegislationordraftlegislationasandwhenappropriate.
Insolvency Practice Committee No. of meetings: 1 Attendance
LimTianHuat(Chairman) 1TanChinHock 1
Co-opted MembersAdamPrimusVarghesebAbdullah 1ChuaSeeHua 1DatukGanAhTee 1GopalSundaram 1JamhirahbteAli 0KhairudinbRosli 0LimSanPeen 1MakKumChoon 0NgChihKaye 1NgPyakYeow 1NitinNadkarni 0Saidatul Ishan bte Abd Rahman 0SSuhendran 0WongCheeLin 1YapWaiFun 1
TermsofReference:-
1. To consider practical problems faced by members relating to receivership or liquidation and make appropriate recommendationstotherelevantauthorities.
2. Toreviewandclarifyanyanomalyinlaworregulationsaffectinginsolvencypracticeandtoliaisewiththerelevantauthorities.
3. Toprepareguidancenotesonvariousaspectsofinsolvencypractice.
4. Tocoordinate liaisonwith local, regionaland internationalbodiesonallmattersconcerning insolvencypractice.
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ANNUAL REPORT 200�
Investigation CommitteeNo. of meetings: 4 Attendance
HoHengChuan(Chairman) 4DatinHjhFadzilahbteSaad(AlternateChairman) 4Dato’AhmadJohanMohammadRaslan 2AhmadMustaphaGhazali 2(LOA-1)MohamedRaslanAbdulRahman 2SeeHueyBeng 2(LOA-1)TehCheeGhee(resigned on 04.11.2006) 2
TermsofReference:-
1. Toconsideranyfactsorcomplaintslaidbeforeitindicatingthatamember,provisionalmemberorregisteredstudent of the Institute has become liable to disciplinary action.
2. WheretheCommitteeisoftheopinionthataprimafaciecasehasbeenmadeout,itshallmakeaformalcomplainttotheDisciplinaryCommittee.
3. To request a member to support the formal complaint during a hearing before the Disciplinary Committee.
4. To request a member to support the decision of the Disciplinary Committee during a hearing before the Appeal Committee.
Membership Affairs Committee
No. of meetings: 4 Attendance
TanGheeKiat(Chairman) 3DatinHjhFadzilahbteSaad 2Dato’HjMaidinSyedAli 0TehCheeGhee(resigned on 04.11.2006) 1LimTianHuat 0NgKimTuck 2GohLeeHwa 3
TermsofReference:-
1. Toconsiderapplicationsformembership.
2. To consider applications for practising certificates.
3. To consider enquiries of members pertaining to membership.
4. Toconsiderapplicationsfromstudentsforregistrationandexemptionfromexaminations.
5. To recommend to Council fees to be charged for membership and issue of practising certificates.
6. ToprepareguidancenotesonvariousaspectsoftheCodeofProfessionalConductandEthics.
7. Toprovidecounselingservicestomembersonprofessionalconductandethics(inaccordancewiththeaboveCode)andotherprofessionalmatterswherepossible,butsoasnottoinfringeonmatterswithinthepurviewofotherCommittees.
8. TopromotetheprofessiontothepublicinliaisonwithotherrelevantCommittees.
9. TodealwithcorrespondencefrommembersandpublicwherethesubjectmatterdoesnotfallwithintheambitofotherCommittees.
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ANNUAL REPORT 200�
Public Affairs CommitteeNo. of meetings: 2 Attendance
DatukRobertYongKuenLoke(Chairman) 2HoHengChuan 2LohLayChoon 0Dato’HjMaidinSyedAli 0Dato’NordinBaharuddin 1SeeHueyBeng 0SamSohSiongHoon 0TanChinHock 2
Co-opted MembersChiaKumCheng 1EstherTanChoonHwa 1
TermsofReference:-
1. To organise programmes to enhance and project the image of the Institute and the profession.
2. To coordinate and organise all public relations activities of the Institute.
3. Todevelopandmaintaincontactswiththemedia.
4. To foster better understanding, relationship and co-operation between the Institute, the Government and the financial and business communities.
5. To be responsible for publication of promotional materials, including the Institute’s journal and press releases.
6. To plan and organise the Institute’s annual and regional conferences hosted by the Institute, and joint conferenceswithotherprofessionalbodies.
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ANNUAL REPORT 200�
Public Practice CommitteeNo. of meetings: �
Attendance
SamSohSiongHoon(Chairman) 8PeterLimThiamKee 3MohamedRaslanAbdulRahman 4PoonYewHoe 2TanChinHock 6VenkatramananViswanathan 0
Co-opted MembersAbuBakarRajudin 4AhmadShahrulHjMohamad 3HengJiKeng 4Dato’RaymondLiew 3(LOA-1)LimKokBeng 0MohdAfrizanHusain 2MohdNoorAbuBakar 5NgPyakYeow 6DavidSiewKahToong 3TongSiewChoo 7GaryYongYoonShing 3
TermsofReference:-
1. Toidentifytheprofessionaldevelopmentneedsofsmallerpractices.
2. Topromotetheprofessionalstandingofmembersinpractice.
3. Toassistmembersinpracticemanagement.
4. Toprovideaforumforinteractionandconsultationformembersinpractice.
5. Toformulateandprovidetrainingcoursesforstaffofsmallerpractices.
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ANNUAL REPORT 200�
Tax Practice CommitteeNo. of meetings: 2
Attendance
BehTokKoay(Chairman) 1GohLeeHwa 0PeterLimThiamKee 2PoonYewHoe 2SamSohSiongHoon 0DrVeerinderjeetSingh 2
Co-opted MembersLeeVoonSiong 1LimPohChin 0MJMonteiro 1NgKimLian 1OngLaySeong 2PhoonSowCheng 0SooHukKheong 0TangChinFook 1RobertTeoKengTuan 1TongSiewChoo 2KennethLimTiongBeng 1NaomiCheeMeeChing 1
TermsofReference:-
1. To serve as key liaison between the Institute and Government on taxation matters.
2. ToparticipateinGovernment’sconsultationprocessonthedevelopment,revisionandimplementationoftaxlegislationandregulations.
3. Toconsiderpracticalproblemsfacedbymembersrelatingtotheapplicationoftaxlegislationandcompliancewith the regulations of the Inland Revenue Board.
4. To be responsible for the Institute’s publications on taxation and related matters.
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ANNUAL REPORT 2006
In the past 12 months, we continued our path towards fulfilling the Institute’s vision as set out in our Medium Term Strategy and Action Plan 2006-2008 – “To be the premier professional business qualification in Malaysia, comparable to the best in the world.” The primary objectives of the Strategic Plan remain unchanged, which include providing education and training, maintaining the professional and technical standards of our members and to serve as thought leaders on professional and technical issues.
Communicating the value of the CPA Malaysia qualification to the next generation of accountants occupies a major part of our on-going strategy and requires significant long-term investment. In this regard, the enhancement and promotion of the CPA Malaysia qualification has been high on our agenda and gathered momentum. With the guidance and professional advice of a brand consultant, one of the most significant output has been the Institute’s branding exercise, which is anchored by the overall brand theme – Success, Achievement and Accomplishment that underlies the value of membership to MICPA.
PRESIDENT’S STATEMENT
Dato’ Abdul Halim Mohyiddin
Positioning the CPA Malaysia brand as the designated choice was a major task in our initial modest brand awareness programme. With the assistance of the Young CPA Group, the Institute conducted career talks at schools, universities and institutions of higher learning and participated in career fairs and exhibitions across the country. New marketing collaterals including publicity leaflets, corporate brochure, posters and display panels have been produced for use in career fairs and exhibitions.
The Secretariat is also mindful that a two-way flow of information is important. We have responded positively to the call from members at last years Annual General Meeting for a more coordinated approach in our communications process and to be more visible and proactive. Emphasis has been given to improving the framework for communication between the Institute and members. To create awareness on the Institute’s activities, we have contributed regular articles to other professional bodies journal and have produced the CPA e-Newsline, a monthly electronic newsletter designed to provide members, students and the public with quick updates on recent developments at the Institute
“Once again I am pleased to report on a very full and satisfying year of activities across the complete spectrum of the Institute’s operations and to highlight some of the new initiatives that the Institute has progressed on your behalf”.
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ANNUAL REPORT 2006
and in the business environment. It is inspiring to note that we have received positive feedback from members on these initiatives.
In the coming year, the Institute will embark on a more aggressive marketing strategy to position the CPA as a Number 1 Business Professional. We have also focused on improving our marketing strengths with the formation of a new Marketing Department in order to be more customer-orientated and to raise the profile of the Institute to various stakeholders. The development and delivery of new and exciting outreach activities have been planned to promote and attract new entrants to the CPA Malaysia programme in line with our overall brand theme. We will continue to highlight the significant value a CPA can add to business by showcasing that CPAs are powerful business partners and highlight our accumulated strong assets in terms of our technical expertise. We will also communicate that we have a strong pool of successful luminaries and business individuals in our fold of CPAs and the diverse roles they undertake.
The Institute continued in its efforts to seek mutual recognition of the CPA Malaysia qualification with overseas professional accountancy bodies and I am pleased to report that our efforts are slowly taking shape. Following our initial successful effort to gain exemptions towards the ACA Qualification of The Institute of Chartered Accountants in England and Wales (ICAEW) in 2004, I am pleased to report that the Association of Chartered Certified Accountants (ACCA) have just completed an independent review of the CPA Malaysia qualification. MICPA and ACCA are in the process of working out Mutual Recognition Agreement (MRA) to set out the terms and basis upon which recognition for membership of qualified members of each body may occur. We will inform members’ of the arrangements in due course. The success of the endeavour should provide an opportunity for young Malaysian CPAs to attain an additional qualification that will further increase the career mobility of Malaysian accountants across borders and enhance the opportunities of exporting professional services. The initiative also helps to foster a close working relationship between the bodies and allows us to share best practices in education and training.
As highlighted in last year’s annual report, the Institute had undertaken a review of the Advanced Stage Examination (ASE). The ASE has been restructured into four modules from the earlier three modules. Module D, which covers accounting, financial reporting and auditing has been split into two separate modules as the syllabus has become increasingly
challenging resulting from the changes in international accounting and auditing standards. The new Module D focuses on advanced topics in accounting and financial reporting whilst the new Module E focuses on competence requirements for audit professionals, covering the advanced aspects and issues relating to auditing and other assurance engagements, the legal and professional environment, and assessment and advice on corporate governance and business controls. The new examination structure took effect from the November 2006 examination.
At the Extraordinary General Meeting held last year, members had passed the resolution to pave way for the admission of a new class of members who shall be entitled to use the designation Certified Financial Accountant (CFiA). The CFiA designation will be awarded to persons who possess a recognised degree in accountancy who have completed the CFiA Professional Competence Programme and obtained the relevant 3 years’ approved practical experience. Alternatively, students who have completed Modules C and D of the ASE may be admitted as members who are entitled to use the designation Certified Financial Accountant (CFiA) and having obtained the relevant 3 years’ approved practical experience.
The CFiA qualification will equip accounting graduates with the knowledge and competencies expected of a professional accountant in business. They will be well qualified to build a career in accounting, finance and management in the business and public sectors. Although the CFiA is a stand-alone professional qualification in its own right, holders enjoy immense flexibility in attaining the next level of professional achievement – the prestigious and challenging Certified Public Accountant (CPA) qualification. The Institute will promote the CFiA qualification to graduates undertaking the Bachelor of Accountancy degree with the aim to expand and strengthen our membership base. The Education and Training Committee is in the process of finalising the syllabus for the CFiA qualification before the programme is officially launched in August 2007.
“The CFiA is your bridge to greater achievements”
A review of the Articles of Association and Bye-laws was undertaken in 2006 as a result of the CFiA qualification. The proposed amendments were approved by a general meeting of members held on June 24, 2006. The main changes to the Articles of Association and Bye-laws are to provide for the admission of a new class of members who shall be entitled to use the designation Certified Financial
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Accountant (CFiA) and their rights of membership. A CFiA will have the same rights of membership as a member with the CPA status, with the exception of the right to vote at general meetings of the Institute and the right to carry out any duty reserved to CPAs. They will be entitled to access the full range of services provided by the Institute to members.
Accountancy is not practised in a vacuum. A modern accountancy profession must be dynamic, accessible and relevant to changing market needs. We operate in a highly competitive environment, where differentiation is fundamental in ensuring future growth. The Institute continued to deliver Continuing Professional Development (CPD) Programmes throughout the year to help members keep abreast of current developments and to build on their knowledge, skills and experience. We organised training programmes in the form of conferences, seminars and workshops on topics of current interest to members. Our Education and Training Department will continue to roll-out more CPD programmes which is a manifestation of our commitment to life-long learning and the up-keeping of professional knowledge to enable members to maintain their competitive edge in an ever evolving competitive environment. Members should actively participate in these programmes to remain at the cutting edge of their profession so as to provide value-added services to clients, employers and other stakeholders.
The Council issued the Statement on CPD in January 2007, which implements International Education Standard for Professional Accountants (IES) 7, Continuing Professional Development: A Programme of Lifelong Learning and Continuing Development of Professional Competence. IES 7 prescribes mandatory continuing professional development requirement for all professional accountants, including those working in public practice, in commercial, governmental, academic and non-for-profit entities to ensure that they develop and maintain competence relevant to their work and professional responsibilities. It is now mandatory for members to complete at least 120 hours of CPD in each rolling cycle of three years, of which 60 hours should be verifiable structured learning activities. Members are required to submit an annual declaration as to the compliance with the CPD requirements prescribed in the CPD Statement. A CPD on-line record functionality has been added to the MICPA website, which facilitates members to update their CPD records.
In the face of globalisation, it is crucial that the Institute’s Code of Ethics conforms with international
standards in order to maintain investors’ confidence in the quality of services provided by Malaysian accountants. The Institute requires that members adhere to the Code of Professional Conduct and Ethics to ensure that members uphold their professional values in all their work. In this regard, the Council has undertaken a revamp of the MICPA Code of Professional Conduct and Ethics, to be in line with the revised Code of Ethics for Professional Accountants issued by IFAC. The revised Code is intended to strengthen the self-regulatory regime of the profession, and hence public confidence in the standards and quality of services provided by CPAs. The revised Code emphasises that auditors need to be constantly vigilant to identify threats to independence and apply appropriate safeguards to eliminate such threats. The Code also provides in-depth guidance for members in business. All these changes are aimed at restoring trust in the accountancy profession and rebuilding investor confidence to the credibility of financial information released by companies, which are used for making investment decisions. The revised Code has been approved by the Council, which will soon be issued to members.
In keeping with our stature as a leading professional accountancy body, the MICPA is recognised as an informed and valued commentator on key business issues. It is important to note the Institute’s role in contributing and providing a significant source of intellectual capital across a diverse range of finance, accounting and business issues on draft legislation, law reforms and regulation during its early stages of development. Through negotiations and submissions, we are able to highlight to government and regulators any unintended or adverse consequences for the profession and the community at large. We will continue to act as a “recognised voice” to protect members’ interests.
In recognition of the increasingly global nature of the accountancy profession, the Institute seeks opportunities to participate and contribute to the international accounting organisations. The Institute’s involvement is focused on areas that are most relevant to the Malaysian environment. Currently, two of our Council members are serving on the IFAC Board. We have also contributed to the work of the International Auditing and Assurance Standards Board, the International Accounting Education Standards Board and the Developing Nations Committee. In the area of international co-operation, the Institute certainly welcomes the exchange of information between fellow accountancy bodies to strengthen
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Members in Practice
Members not in Practice
Membership Statistics as at December 31, 2006
Total Membership
CPA Graduate Members
Female Members
Male Members
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professional relationship and understanding of the current developments in the accountancy profession and business environment in the various countries. A delegation visit from the Institute of Cost & Works Accountants of India was made to the Institute during the year, which certainly served to strengthen the friendship between the two accountancy bodies and open up further opportunities for close co-operation on professional activities where there may be mutual benefit for members.
The Institute is certainly undergoing challenging times. We will need to work hard to strengthen the Institute’s position in a rapidly changing and highly competitive environment. I am confident that I can count on the continued support of members in our challenge to maintain the recognition of the CPA Malaysia qualification as a premier brand of business qualification and further advance the Institute’s position as a pre-eminent professional body.
Finance
The Institute achieved a surplus of RM282,600 compared to a deficit of RM97,200 in 2005.
Total income increased by RM221,400 or 7% due mainly to the increase in income from member and student sources resulting from the revised rates of annual subscriptions and fees.
Total expenses decreased by RM152,100 or 5% due mainly to a non-recurring professional fee of RM161,700 incurred in 2005 for the review of the MICPA qualification by an education consultant with the aim of achieving recognition by the Chartered Accountants Group.
Total assets increased by RM118,500 or 10% due mainly to the substantial increase in fixed deposits by RM250,000. The increased in total assets was partly off-set by the amortization of the development cost of study manuals amounting to RM120,500. Total
liability reduced by RM164,000 or 12% resulting mainly from the repayment of term loan, which was obtained to finance the development cost of study manuals. The Institute has an accumulated fund of RM75,900 as at December 31, 2006 compared to an accumulated deficit of RM206,600 in previous years.
The Institute was able to rebuild its reserves due to a revision of the annual subscriptions and fees payable by members and students, which took effect from the financial year 2006. The Council will continue to undertake fund raising activities to increase the Institute’s financial resources in order to enable the Institute to invest in the key initiatives set out in the Strategic Plan.
Membership
During the year, a total of 66 new members were admitted. After taking into account members who resigned or were excluded from membership for failure to pay the annual subscriptions/practising certificate fees, a net increase of 6 members was recorded.
Of the new admissions, 56 members were admitted from the register of students, having completed the Institute’s examinations and fulfilled the prescribed practical experience requirements. The other new members were admitted on the basis of their professional accountancy qualifications, which are recognised by the Institute. This category of members are required to either pass the Institute’s Admitting Examination, which consists of two papers focusing on taxation law and the regulatory and financial framework of Malaysia, or demonstrate their knowledge at an interview and supported by evidence of relevant work experience in Malaysia.
There has been no significant change in the membership profile. As at December 31, 2006, 46% of the members worked in public practice firms,
Council Meeting in progress. YBhg Tan Sri Azman Hashim receiving Anugerah Presiden 2006 from YB Tan Sri Nor Mohamed Yakcop, Minister of Finance II.
MICPA President, Vice-President and Ms Tan Shook Kheng listening to matters raised by members at the AGM.
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PublicSector0.5% (15)
Education0.5% (28)
Consultancy and Others3% (90)
Retired6% (179)
Public Practice14% (432)
Employees ofAccounting Firms32% (990)
Commerceand Industry39% (1,211)
FinancialInstitutions5% (143)
51-559% (289)
56 & above 19% (591)
21-305% (135)
31-4034% (1,051)
41-5033% (1,022)
Membership Status
Membership by Field of Employment
Membership by Age
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professional needs of different segments of the membership. The Institute provides members with technical updates and guidance on all aspects of CPAs’ work covering accounting, auditing and assurance, taxation, and insolvency practice. Continuing Professional Development (CPD) courses on a broad scope of topics are organised to meet the diversified needs of members.
The Institute continues to take advantage of IT to improve the communication process with members. E-circulars and alerts are sent regularly to keep members updated on recent developments at the Institute as well as on technical updates. The MICPA website is constantly being enhanced to improve its service functionality and interactivity. A CPD on-line record functionality has recently been added to the website, which facilitates members to update their CPD records.
The Institute constantly seeks to offer better services that support members in their careers and professional work.
Continuing Professional Development
As highlighted in the earlier pages of this report, the Council has approved the issuance of the Statement on Continuing Professional Development that prescribes the continuing professional development requirements with which members should comply for CPD reporting periods beginning on or after January 1, 2007.
Members have a continuing duty to maintain their professional knowledge and skills at the level required to ensure that their clients, employees and other stakeholders receive the advantage of competent professional services based on current developments in practice, law and business. It is recognised that to achieve this needs more than just work experience, participation in a planned programme of CPD is the most effective way for members to maintain and enhance their professional competence.
CPD programmes in the form of seminars, workshops, public forums and evening talks were offered throughout the year to help members meet their CPD requirements. A wide range of topics were covered including updates on accounting standards, financial reporting and changes in corporate law and tax legislation. For the benefit of members involved in taxation service, a series of workshops on tax audit and application of public rulings of the Director General of Inland Revenue were conducted.
of whom 14% were members holding practising certificates. A total of 47% of the members were employed in the business and 1% in education and the public sector. Retired members accounted for 6% of the total membership.
During the year, a total of 39 female members were admitted, constituting 59% of the total new admissions. The proportion of female members increased by 1% to 36% at the close of 2006.
MEMBERSHIP STATISTICS
As at December 31 Net 2006 2005 Increase
In Practice 432 417 15
Not in Practice 2,656 2,665 (9)
Total 3,088 3,082 6
Provisional Members
A total of 10 new provisional members were admitted during the year. These are graduate members who have completed the Institute’s examinations but have not fulfilled the practical experience requirement for admission as full members. Provisional members enjoy the full range of membership services and all other privileges of a qualified member with the exception of the right to vote in any general meeting of members, the right to carry out any duty reserved to members of the Institute, and the right to hold himself out as a principal or partner of an accounting firm.
Services to Members
To maintain and grow our position as a pre-eminent leading professional body, we must constantly improve the services and support provided to our members. The Institute demonstrates its commitment to this objective in various ways.
As a member-based organisation, one of the Institute’s key functions is to provide support and services that meet the needs of different segments of the membership. Over 45% of the members are involved in practices of all sizes and more than 45% work in all sectors of commerce and industry.
Of paramount importance is to ensure that members maintain high professional standards and technical excellence in the performance of their work and services. The Institute maintains a network of committees to help identify and meet the various
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With the introduction of the new and revised Financial Reporting Standards effective January 1, 2006, the Institute in collaboration with the Malaysian Institute of Accountants, the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants and CPA Australia, jointly organised a series of one-day awareness seminar on Financial Reporting Standards in the major cities. A panel of distinguished speakers from MASB and practitioners were invited to lead discussions in the seminars that have received overwhelming response from the accountancy profession.
A two-day MICPA-Bursa Malaysia Business Forum 2006 was held in September 2006, featuring the theme “Moving Up the Value Chain – Innovation, Capacity Building & Competitiveness”. YB Dato’ Seri Rafidah Aziz, Minister of International Trade and Industry, delivered the Opening Keynote Address. A panel comprising corporate leaders, senior Government officers, bankers, business advisors and tax consultants led discussions on a number of topical issues relating to the challenges and strategies in moving up the value chain.
The Young CPA Group organised the inaugural Young CPA Malaysia Symposium in July 2006, featuring the theme “Gearing Up Young Business Professionals for the Competitive World”. The Vice President of MICPA, YBhg Dato’ Nordin Baharuddin delivered the Opening Keynote Address. Broadening the intellectual and professional horizons of the young genre of business professionals by highlighting contemporary issues and challenges impacting their professional and personal lives was the main objective of the symposium.
Public Practice
The Public Practice Committee is charged with the responsibility to identify the professional development needs of the members in public practice, especially the small and medium sized practices. The Committee also serves as a forum for consultation and discussion of issues relevant to members in practice.
The major project of the Committee was the development of an Audit Guide for the audit of financial statements of limited companies which was published and available for sale at the end of 2006. The Audit Guide was intended to provide comprehensive guidance on the performance of audit of financial statements of limited companies in accordance with International Standards on Auditing, which have been adopted for application in Malaysia and to maintain quality control for audit work. The
Audit Guide covers the development of an audit plan, audit programme and audit management. It also contains sample audit working papers, internal control questionnaire and checklists on disclosure requirements. The project, undertaken with the technical support from Deloitte KassimChan, Horwath KL and Monteiro & Heng, is for the benefit of small and medium sized practices.
A series of two-day workshops on the usage of the Audit Guide has been planned in the major cities since January 2007. The objective of the workshops is to equip the participants with the technical knowledge and skills in conducting audits of financial statements in accordance with International Standards on Auditing, which have been adopted for application in Malaysia.
Informal gathering of members were organised regularly to keep members stay abreast with current developments affecting members’ professional work. An informal gathering of members was held in conjunction with a Forum on Corporate Law Reform in Malaysia – Key issues impacting Company Auditors, which was addressed by the Chairpersons of Working Groups B and C of the Corporate Law Reform Committee. The objective of the forum was to highlight the key issues and proposals in the corporate law reform that have an impact on the duties and responsibilities of auditors, particularly towards enhancing corporate governance and protection of shareholders’ interests.
The Technical Reference Panel, which provides advisory services to members, received an increased number of enquiries during the year. The subject matter related largely to the application of the new and revised Financial Reporting Standards, tax legislations and company law. The Institute has relaunched the Technical Advisory Q&A in the February issue of The Malaysian Accountant 2007.
The Committee is in the process of organising a Practitioners Forum, scheduled for October 2007. The event is intended to be held in conjunction with a study tour to Kunming and Lijiang, China.
Commerce and Industry
Almost half of the Institute’s members are engaged in Commerce and Industry. The Commerce and Industry Committee is charged with the responsibility to identify and recommend Continuing Professional Development (CPD) needs of members in business to the Education and Training Committee for CPD activities to be organised.
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Participants listening attentively at an Evening Talk.YB Dato’ Seri Rafidah Aziz, Minister of International Trade anad Industry, delivering the Keynote Address at the MICPA-Bursa Malaysia Business Forum 2006.
Minister of Finance II holding the Audit Guide for Practitioners.
The Committee had organised an Evening Talk on The Importance of Estate Planning in December 2006. The objective of the Evening Talk was to create awareness of the importance of estate planning in order to avoid family disputes and uncertainties.
The Committee assisted in the organisation of the MICPA-Bursa Malaysia Business Forum 2006. The two-day Business Forum held in September 2006 was targeted at company directors and senior executives. YB Dato’ Seri Rafidah Aziz, Minister of International Trade and Industry, delivered the Opening Keynote Address focusing on the theme of the Business Forum, Moving Up the Value Chain – Innovation, Capacity Building & Competitiveness.
The Committee continues to undertake the review of winning articles published by IFAC, resulting from an annual competition held by IFAC under the Articles of Merit programme. The articles for the 2006 competition cover a wide variety of topics, ranging from performance measurement, lean accounting, risk management, corporate social responsibility to the future of finance. Where the Committee feels that the topics are relevant and beneficial to members, the articles will be published in The Malaysian Accountant.
Government Relations
One of the crucial activities of the Institute is to forge close working relationships with the Government and the regulatory bodies to enable the Institute to advance members’ views on policy and legislative issues. This is particularly important at a time when significant policy measures and changes to the securities law, companies law, taxation laws and other business legislation are under-going reforms to improve the efficiency of the public service delivery system so as to strengthen the nation’s economy and capital market.
The Institute made a number of submissions and representations to the Ministry of Finance, the Securities Commission, the Companies Commission
of Malaysia, the Inland Revenue Board and relevant Government departments. The views and proposals provided by the Institute in response to proposed legislative reforms represent important perspectives from the profession and the business community it serves. The Institute also channels members’ concerns on regulatory guidelines relating to the operation of capital market, governance of companies and the income tax system.
The Institute continues to participate in dialogue sessions held by the Government with the private sector. These include the annual dialogue with the Ministry of Domestic Trade and Consumer Affairs, the Companies Commission of Malaysia annual dialogue, half yearly meetings of the Customs-Private Sector Consultative Panel and regular dialogues with the Inland Revenue Board. The Institute also participates in technical level meetings with the various regulatory bodies to discuss implementation issues arising from legislative changes.
The Institute continues to support the Capital Market Graduate Training Scheme implemented by the Securities Commission to enhance human resources for the Malaysian capital market since its introduction in 2003. It involves one month of intensive training conducted by the Securities Commission and eleven months of on-the-job training in participating organisations. The Institute also helps to place trainees in CPA firms to undergo practical training.
Technical Activities
Technical activities form a key component of the Institute’s work programme, spanning over all major aspects of members’ professional work.
In the area of accounting, the Institute continues to participate in the standard-setting process of MASB. The Institute serves on a number of MASB’s project working groups and its Issues Committee. The Institute provides feedback on proposed new standards and discussion documents during the
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consultation process and makes representations to MASB on interpretation issues. MASB standards are issued to members for compliance as soon as they are published by MASB.
Corporate advisory, taxation and insolvency services have become increasingly important in the components of the members’ work. The Institute monitors changes to the policies and guidelines issued by the capital market regulators, revenue authorities and other relevant authorities. Technical updates and guidance are issued promptly to assist members carry out their work effectively.
Setting standards and guidelines on auditing and other assurance services remains a core area of the Institute’s technical activities. We must maintain high professional and technical standards to secure public confidence in the work performed by members. The Institute’s commitment to promulgate International Standards on Auditing, Assurance Engagements and Related Services issued by the International Auditing and Assurance Standards Board (IAASB) of IFAC ensure that we are at par with global benchmarks. The Institute undertakes constant review of the standards and adopt the standards for compliance by members through a due process.
The Institute maintains close working relationship with MIA in carrying out its technical activities. Previously, a Joint Working Group on Auditing (JWGA) was established to undertake the review of new/revised International Standards on Auditing (ISAs) and exposure drafts of proposed ISAs and other pronouncements issued by IAASB and to submit responses to IAASB. The JWGA also makes recommendations on the adoption of ISAs and other IAASB pronouncements for approval by the Councils of MIA and MICPA. However, the JWGA was dissolved in January 2007 and its terms of reference have been incorporated into the joint meeting of MIA’s Accounting and Auditing Committee (AAC) and the Institute’s Accounting and Auditing Technical Committee (AATC). A Joint Working Group on Securities Guidelines has also been formed to ensure that the two Institutes adopt a consistent approach in making representations to the capital market regulators and in providing technical guidance to members.
Accounting and Auditing Standards
The Accounting and Auditing Technical Committee (AATC) has overall responsibility for the development and review of accounting, auditing and reporting standards and guidelines. The Committee is supported by the Joint Working Group on Auditing
(JWGA), three specialist working groups and ad hoc task force appointed to undertake specific projects.
Based on the recommendation of the JWGA and the joint meeting of MIA’s AAC and the Institute’s AATC, the following IAASB pronouncements had been issued in September 2006 as MICPA Exposure Drafts for comment:
ISA 230 (Revised) Audit Documentation
ISA 700 (Revised) The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements
ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity
The Council, upon the expiration of the exposure period, has approved ISA 230 (Revised), ISA 700 (Revised) and ISRE 2410 as approved auditing and assurance standards. ISA 230 (Revised) shall be effective for audits of financial information for periods commencing on or after January 1, 2008 and ISA 700 (Revised) shall be effective for auditor’s reports dated on or after July 1, 2008. ISRE 2410 shall be effective for review of interim financial information for the periods commencing on or after July 1, 2007.
The Council has also issued the following International Auditing Practice Statements (IAPS) during the year to members for guidance:
IAPS 1005 The Special Considerations in the Audit of Small Entities
IAPS 1014 Reporting by Auditors on Compliance with International Reporting Standards
The IAASB has issued four final redrafted ISAs and eleven exposure drafts of revised and redrafted ISAs as part of its comprehensive program to improve the clarity and structure of IAASB standards. The four final redrafted ISAs are ISA 240 (Redrafted), The Auditor’s Responsibilities Relating to Fraud in the Audit of Financial Statements, ISA 300 (Redrafted), Planning an Audit of Financial Statements, ISA 315 (Redrafted), Identifying and Assessing the Risks of Material Misstatements Through Understanding the Entity and its Environment and ISA 330 (Redrafted), The Auditor’s Responses to Assessed Risks. Based on the recommendation of the joint meeting of MIA’s AAC and the Institute’s AATC, the Institute has issued the four final redrafted ISAs and eleven exposure drafts during the year as MICPA Exposure Draft for comment.
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The Joint Working Group on Securities Guidelines (JWGSG) has had a busy agenda. It made several submissions and representations to the Securities Commission (SC) on issues relating to the proposed amendments to the Prospectus Guidelines and Securities Industry Act, 1983 (SIA). The Institute was also invited by the SC to discuss its recommendations to develop a more effective disclosure-based system of regulation.
The JWGSG is in the midst of finalising the guidance on the preparation of pro forma financial information for purposes of submission of corporate proposals to the SC. The guidance is expected to be ready for publication by the third quarter of 2007.
An amendment to section 49(1) of the Securities Industry Act 1983 (SIA) relating to the auditor’s report for a fund manager and dealer gave rise to an issue of concern. This is a situation where the statutory financial reporting requirements are inconsistent with auditing and assurance standards.
The Institute, jointly with MIA, have made representations to the SC regarding the matter. Pending the resolution of the matter with the SC, the Institute has advised members to comply with the relevant auditing and assurance standards in the performance of their reporting function.
The following projects of the JWGSG are on-going:
• Development of guidance on auditor’s duty to report breaches of securities laws and rules of the exchange to the relevant authorities (whistle blowing role) under the SIA.
• Development of guidance on the reporting accountants’ responsibilities relating to their participation in the due diligence working group in connection with the submission of corporate proposals to the SC.
• Development of guidance on the accounting treatment for Securities Borrowing and Lending transactions.
• Development of the revised guidance on the Accountants’ Reports for Prospectuses.
During the year, MASB has issued FRS 6, Exploration for and Evaluation of Mineral Resources and Amendment to FRS 1192004, Employee Benefits – Actuarial Gains and Losses, Group Plans and Disclosures, which are effective for annual periods beginning on or after January 1, 2007.
The MASB has also issued the following exposure drafts of proposed MASB Standards and IC Interpretations for consultation:
ED 52 Private Entity Reporting Standards
ED 53 Framework for the Preparation and Presentation of Financial Statements
ED 54 Amendment to FRS 121 The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation
ED 55 Proposed Amendments to Financial Reporting Standards
Draft IC Reassessment of EmbeddedInterpretation 9 Derivatives
Draft IC Interim Financial Reporting andInterpretation 10 Impairment
The AATC has assigned a number of working groups to undertake a review of the exposure drafts and to provide comments to MASB. The Proposed Amendments to Financial Reporting Standards (ED 55) are intended to converge the 10 FRSs with the relevant International Financial Reporting Standards (IFRS). The Institute has, jointly with MIA, submitted the comments on the International Financial Reporting Standards on Small and Medium-sized Entities to MASB.
At the International level, the Institute’s nominee to the IAASB, Mr Sukanta K Dutt has completed his term in December 2006. During his term, he had chaired the Task Force that had completed the review
MICPA’s Publications. Participants at the MICPA-Bursa Malaysia Business Forum 2006.
Young CPA Group organised a talk on Image Power.
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and revision of ISA 800, “Special Considerations – Audits of Special Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement”, and ISA 805, “Special Considerations When Reporting on Summary Financial Statements”. Mr Dutt had also been a member of the Task Force to review and revise ISA 620, “Using the Work of an Expert”, up to the time of completion of his term.
Company and Securities Law
The Corporate Law Reform Committee (CLRC), which was established by the Companies Commission of Malaysia (CCM) to undertake the review of Malaysia’s corporate law with the objective to creating a more conducive legal and regulatory structure that will provide a cost effective, transparent and competitive environment for businesses in Malaysia, has issued five more consultative documents for public comment. The five consultative documents set out proposed reforms to the Companies Act 1965 relating to Capital Maintenance Rules and Share Capital: Simplifying and Streamlining Reduction of Capital, Share Buy Back and Financial Assistance; Members’ Rights and Remedies; Creating a Conducive Legal and Regulatory Framework for Businesses; Company Liquidation-Reforms and Restatement of the Law; and Clarifying and Reformulating the Directors’ Role and Duties.
The Institute, jointly with MIA, have undertaken a review on four of the five consultation documents and submitted our comments and proposals to the CLRC. The Committee is still in the process of reviewing the consultative document on Simplifying and Streamlining Reduction of Capital, Share Buy Back and Financial Assistance.
The Corporate Practice Consultative Forum (CPCF) was established by CCM, with the aim to providing a platform for professional bodies to provide feedback, views and proposals on the practices, regulations and programmes implemented by CCM pursuant to the Companies Act 1965. The Forum comprises seven professional bodies, including the Institute. The Institute had submitted a list of practical issues and proposals relating to the Companies Act 1965 for discussion by the Forum, which held two meetings in 2006.
The Securities Commission (SC) continues to introduce and implement measures to enhance the framework for the enforcement of securities laws to allow for more effective action on corporate improprieties. Amendments were made to the securities law to create a more facilitative regulatory environment for
capital raising and to meet future challenges from regional competition and globalisation. The Institute maintains an on-going consultative relationship with the SC to discuss practical issues relating to the existing regulations and proposals for change with the view to providing a more facilitative environment for capital raising.
The Institute participates actively in the consultative process of Bursa Malaysia Berhad relating to changes to the Listing Requirements. In addition, the Institute is also involved in the various focus groups of Bursa Malaysia in relation to new measures or products being introduced by Bursa Malaysia.
Insolvency
The main activity of the Insolvency Practice Committee (IPC) during the year was to review the Consultative Document on Company Liquidation – Reforms and Restatement of the Law, issued by the Corporate Law Reform Committee. The Committee held a joint meeting with MIA’s Insolvency Practice Working Group to discuss on the Consultative Document. Mr Lim Tian Huat, Chairman of the IPC who is also the Chairman of CLRC’s Working Group D, is responsible for the review of the laws relating to Insolvency and Corporate Securities. Four other members of the IPC also sit on the CLRC Working Group.
The Committee is in the process of developing Insolvency Guidance Notes on a number of practical issues arising from the application of the Companies Act 1965 including the eligibility of auditors to act as liquidator of audit clients, effective date of cessation of office of liquidator, vacation of office of liquidator due to death and requirements on lodgement of Form 75, Liquidator’s Account of Receipts and Payments and Statement of the Position of Winding Up.
The Committee, as a special interest group, continues to be a member of INSOL International, an international organisation of insolvency professionals. The affiliation provides opportunities for members engaged in insolvency practice to keep up to date with the global changes and developments in insolvency law and practices. The INSOL journal serves as a useful source of reference on significant insolvency issues and developments.
Taxation
The Tax Practice Committee assumes the role as the key liaison between the Institute and the Government on taxation matters. The Committee makes regular representations to the Government and the revenue
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authorities on behalf of members participates in the Government’s consultation process on the development, revision and implementation of tax law and regulations.
The Institute continues to work in close co–operation with the Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Taxation (MIT) in making submissions to the Inland Revenue Board (IRB) concerning practical issues encountered by members in the application of tax legislation, and the rules and regulations issued by the IRB. During the year, several dialogue sessions were held with the Revenue Management Department and the Deputy Director General of the IRB to arrive at practical solutions to the problems.
The three Institutes have jointly submitted a memorandum to the IRB concerning tax audit and tax investigation in July 2006. A separate memorandum setting out the three Institutes’ comments on the IRB’s proposed Framework on Tax Audit and Framework on Tax Investigation was submitted to the IRB in October 2006. A dialogue session was held in December 2006 between the IRB and the professional bodies to address issues raised by the professional bodies.
One of the key issues of concern during the year was the new licensing requirements for tax agents issued by the Ministry of Finance. The Institute, jointly with MIA and the Malaysian Institute of Chartered Secretaries and Administrators (MAICSA) submitted a follow up memorandum to the Ministry highlighting concerns with the inconsistent practical experience requirements for applicants for tax agent license; the submission of client information together with applications for renewal of tax agent license; and the recognition of budget seminars organised by professional bodies recognised in the Accountant’s Act.
The Government has established a Taxation Review Panel to undertake a review of Malaysia’s taxation system. The Institute, jointly with MIA and MIT, have submitted proposals on the tax treatment of the property development and construction industry to the Taxation Review Panel for consideration.
The Tax Practice Committee continues to participate in the IRB’s consultation process relating to the development of Public Rulings, which provides guidance on the interpretation of the Director General of Inland Revenue in respect of a particular provision in the tax law, and the policy and procedures that should be applied. The Public Rulings serves as a useful guide to both taxpayers and the IRB officers in the application of the law.
Currently, the Institute is treated as “trade association” for tax purposes and its income is taxed at scale rates. In light of the Public Ruling 6/2005 on Trade Associations, the Institute, jointly with MIA and MAICSA, have submitted a memorandum on the tax treatment of professional bodies on the mutuality principle, under which all income derived from members’ activities and used for members’ benefits is exempt from tax and income derived from non-members activities is taxed at scale rates, to the IRB for consideration.
The Institute, jointly with MIA, have submitted a number of proposals relevant to the 2007 national budget theme, Enhancing Competitiveness and Sharing Economic Prosperity, to the Ministry of Finance.
The Committee continues to represent the Institute at the half-yearly meetings of the Customs-Private Sector Consultative Panel.
The Committee is responsible for the publication of the CPA Tax and Investment Review, which contains annual updates on tax laws and regulations, Government policies and guidelines on investment and incentives, and other pertinent information on doing business in Malaysia. It also provides a summary of recent tax cases and an index of current amendments to the Income Tax Act and related legislation. The publication was undertaken with the technical support of six large accounting firms.
The Committee also assumes the responsibility to oversee the publication of the annual budget commentary, which is undertaken on a joint venture basis by the Institute, MIA and MIT. A total of 112,000 copies of 2007 Budget Commentary and Tax Information were printed. Apart from the 28,000 copies sent to members of the three Institutes as part of the membership service and to the complimentary recipients, a total sale volume of 80,000 copies was achieved. The success of the project was the result of the team work of the three joint-venture partners and the contributions of the editorial board, consisting of more than 60 members drawn from seven large accounting firms.
Communications and Public Relations
The Institute continues to organise programmes to enhance and project the profile of the MICPA and the Malaysia CPA qualification. To maintain and grow our position as a leading professional body, we must be able to attract young, bright Malaysians to join the CPA profession. Therefore, our strategic focus was
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to strengthen our brand name. The Institute’s public relations activity for the year continued to focus on two main objectives – to maintain the position of the Institute as a centre of technical excellence and to promote the quality and distinctiveness of the CPA qualification as a Number 1 Business Professional.
Accountancy has become one of the most popular courses pursued by young Malaysians. A career in accountancy is both challenging and demanding and commands high rewards. The Institute continued to participate actively in career fairs and exhibitions across the country to promote accountancy as a career and in particular to create greater awareness of the Malaysia CPA qualification. With the support of the Young CPA Group and members of the Institute’s Education and Training Committee, the Institute presented career talks at schools, universities and colleges of advanced education across the country.
University students are a major source of our student intake. To foster closer relationship with this target group, during the year the Institute sponsored a number of student activities organised by the accounting clubs of a number of universities, including UiTM, UKM, USM, UM and UTAR.
The Institute also actively maintained its media relations. Press releases were also issued during the year to keep the media informed of the Institute’s on-going activities and programmes, which further reinforced the Institute’s professional profile.
The Institute continued to take advantage of the Budget Day with the aim to provide target audiences with MICPA’s reaction to the Budget and to project the image of MICPA as a centre of technical excellence. We took part in a special radio programme to highlight the salient features of the 2007 Budget and answered phone-in enquiries from members of the public. We also participated in media interviews and live commentary on the Budget hosted by both the print and broadcast media.
48th Annual Dinner
The MICPA held its 48th Annual Dinner on June 24, 2006 at Sheraton Imperial Kuala Lumpur. The Dinner was graced by YB Tan Sri Nor Mohamed Yakcop, Minister of Finance II and was attended by close to 500 members and invited guests. This year’s Annual Dinner was also the occasion for a number of commemorative events.
The Institute presented Anugerah Presiden 2006 to YBhg Tan Sri Dato’ Azman Hashim, Chairman of AmBank Group in recognition of his exceptional contributions to society, the accountancy profession and the Institute.
The Institute also presented Long Service Awards to two Secretariat staff who have been in the employ of the Institute for over ten years, in recognition of their loyalty, diligence and dedicated service. The recipients were Mr Kenny Hooi Sai Onn, Accounts Executive and En Muhammad Ruzi, General Clerk.
The dinner was also the occasion for the launch of the MICPA Audit Guide for Practitioners by YB Tan Sri Nor Mohamed Yakcop. Initiated by the Public Practice Committee, the Audit Guide is intended to assist members in practice, especially the smaller practices, maintain quality control for audit work in conformity with international benchmarks.
The highlight of the evening was fund-raising for the MACPA Educational Trust Fund (ETF). The ETF offers scholarships and study loans to assist young Malaysians with outstanding academic record but who are financially disadvantaged to pursue a degree or higher professional qualification in accountancy. The ETF also offers research grants to encourage research and studies in current issues in accounting practice, accounting education and related areas.
Md Ruzi Yaacob receiving Long Service Award. Guests at the Annual Dinner enjoying themselves during the entertainment.
Kenny Hooi receiving Long Service Award.
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Newly Qualified CPAs.
MICPA Excellence Awards
The annual MICPA Excellence Awards Presentation was held on September 16, 2006 at the Pan Pacific Hotel Kuala Lumpur. The presentation ceremony was officiated by YBhg Dato’ Zainal Abidin Putih, Chairman of Malaysian Accounting Standards Board (MASB) and a Past President of the Institute. The event was witnessed by students, their family members, friends and guests of MICPA.
Launched in 1992, the objective of the Excellence Awards is to honour and public recognition to our young graduates who have achieved all-round excellence in the pursuit of an accountancy qualification. The recipients of the Excellence Awards are not only outstanding in their academic performance, but also in extra-curricular activities and in personal development.
A total of 9 Excellence Awards for Best Accounting Graduates were presented to the top students in the Bachelor of Accountancy programme from IIUM, UKM, UM, UPM, USM, UiTM, UUM, MMU and UNITEN.
The Most Outstanding CPA Student Award was presented to a CPA Student who has achieved all-round excellence – high distinction in the MICPA examination, exemplary career development and outstanding personal qualities. This year, the Award was won by Ms Hwang Wee Wee, who is currently attached to Ernst & Young. Joining the MICPA programme in 2004, she passed all the Modules of the Advanced Stage Examination at the first attempt and won the Gold Medal for best performance for every module.
Entries for the Excellence Awards were by nomination and all the candidates were of very high caliber. In view of this, a Certificate of Meritorious Achievement was presented to all the finalists for the two categories of Excellence Awards.
The ceremony was also the occasion for the presentation of Examination Certificates to registered students of the Institute who passed the November 2005 and May 2006 sessions of the MICPA examinations. A total of 6 examination prizes in the form of Gold Medals were presented to the top scorers. All successful students in these two examination sessions had the honour of receiving their examination certificates from the President of the Institute.
An Appreciation Award was also presented to Bank Muamalat Malaysia Berhad in recognition of its commitment and support for the MICPA training programme under Stream II. En Mohamad Yasin Abdullah, then Head of Finance of Bank Muamalat, received the award on behalf of the Bank.
48th Anniversary Commemorative Lecture
The Institute’s 48th Anniversary Commemorative Lecture was held on December 5, 2006 at The Westin Kuala Lumpur. The function was graced by a very distinguished guest, YB Dato’ Shahrir Abdul Samad, Chairman of the Public Accounts Committee, who also delivered the Commemorative Lecture titled “Public Accountability – the Hallmark of Effective Governance Leading to Economic Success and Prosperity”.
The Lecture provided enlightening insights on the approaches to public accountability. In his speech, YB Dato’ Shahrir stressed that good governance practices in the public sector that encompass accountability, integrity and transparency will not only assist in business growth and development but also encourages a competitive private sector in a global world.
Participation at Career Fair and Exhibition. Winner of the 2006 Most Outstanding CPA Student Award, Ms Hwang Wee Wee from Ernst & Young.
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The Malaysian Accountant
The Editorial Board has been making conscientious efforts to improve both the content and layout of the journal to ensure that it achieves its objectives. In this regard, the Institute appointed a new publisher for the production of The Malaysian Accountant. The intention is to improve the design, content and quality of publication of the journal, which serves as an important channel of communication with members as well as external audiences.
The journal features a wide range of articles covering topics relating to accounting, taxation, information technology and the national economy, to cater to the interests of different segments of membership. It also carries regular columns including updates on MASB, IASB and IFAC activities, highlights on case law, and global professional and business news contributed by our overseas correspondent.
Major events of the Institute are regularly featured in the Institute News column, which serves as an important means of communicating news on the Institute’s activities to members. To add variety to the journal content, a lifestyle column, the Young CPA column and a People column featuring prominent CPAs were introduced during the year.
The MICPA Website
The website serves as an important tool in marketing the CPA brand and establishing links with fellow professional bodies all over the world. The Institute continues to increase the use of IT for communication and delivery of products and services to members and students. The website provides a comprehensive range of services and contains an information resource with search facilities. These include the MICPA Members Handbook on approved accounting and auditing standards, companies and securities laws and regulations, and an E-library with self-search and on-line requests and reservation facilities.
Members and students can have secured access to the registers to update their personal particulars, register for Continuing Professional Development (CPD) programmes, examinations and workshops, as well as make event bookings on-line. A new functionality has been added to enable members to update their CPD records online. The e-mail broadcast functionality enables the Institute to issue prompt alerts to inform members of technical updates, events and new products.
The CPA e-Newsline, a monthly electronic newsletter designed to provide members, students and the public with quick updates on recent developments at the Institute and in the business environment, was introduced in January 2007.
National Annual Corporate Report Awards
The presentation ceremony for the National Annual Corporate Report Awards (NACRA) 2006 was held on November 30, 2006 at Sime Darby Convention Centre, Kuala Lumpur. Officiated by YB Datuk Hj Mohd Shafie bin Hj Apdal, Minister of Domestic Trade and Consumer Affairs, the presentation ceremony was attended by corporate leaders, representatives of the regulatory bodies, senior executives of public-listed companies and members of the accountancy profession.
More than recognition, NACRA strives to promote excellence in annual corporate reporting. It encourages transparency and corporate accountability through the publication of timely, informative, factual and reader friendly annual reports. This is the very cornerstone of NACRA’s theme – Towards Excellence.
In his speech, the Minister stressed that the quality of annual reports is important as it provides valuable information about the company’s financial position and past performance. In addition, it should give investors insights into the company’s operations and future prospects. The annual report should
En Mohamad Yasin Abdullah, then Head of Finance, Bank Muamalat Malaysia Bhd, receiving the Appreciation Award.
President of MICPA (left) ushering YB Dato’ Shahrir Abdul Samad, guest speaker for the 48th Anniversary Commemorative Lecture
New Display Panels for Road-Shows.
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ANNUAL REPORT 2006
serve not only as a valuable source of information for minority shareholders and investors but also as a useful means of influencing shareholder and public perception. He added that companies that subscribe to good standards of corporate integrity are not only helping to create a prosperous business climate in this country but also positively contributing to the achievement of the country’s national agenda.
A total of 21 awards were presented in 5 categories. This year, the Organising Committee introduced Platinum, Gold and Silver award rankings for the Overall Excellence Award, the Environmental Reporting Award and the Presentation Award with the hope of encouraging even greater competition amongst corporate Malaysia to strive for excellence in annual corporate reporting.
Telekom Malaysia Berhad bagged the Platinum Award for the coveted Overall Excellence Award for the Most Outstanding Annual Report for 2006. The company also walked away with three other awards - the Industry Excellence Award for Companies Listed on the Main Board under the Trading and Services Sector, Gold Award for Best Designed Annual Report and Silver Award for Best Annual Report in Bahasa Malaysia.
Shell Refining Company (Federation of Malaya) Berhad won the Platinum Award for Best Environmental Reporting whilst Malaysia Airport Holdings Berhad won the Platinum Award for Best Designed Annual Report. Public Bank Berhad won the Platinum Award for Best Annual Report in Bahasa Malaysia.
The Award for Best Annual Report of Non-Listed Organisations was won by Cagamas Berhad.
The Adjudication Panel, consisting of 76 members drawn from commerce and industry, public accounting firms, academic institutions and communications and advertising firms carried out a thorough assessment of the annual reports based on established criteria. The panel had a very challenging task in selecting the winners, as all the entries were of very high quality.
A Certificate of Merit was presented to 13 finalists in recognition of the commendable high quality of their annual reports.
This annual event is jointly organised by Bursa Malaysia Berhad, the Malaysian Institute of Accountants (MIA), the Malaysian Institute of Certified Public Accountants (MICPA) and the Malaysian Institute of Management (MIM).
Professional Regulation
Financial Statements Review
Self regulation is one of the hallmarks of the accountancy profession. Monitoring members compliance with technical and professional standards is a crucial aspect of a self-regulatory regime.
The Financial Statements Review Committee undertakes the important task of monitoring members’ compliance with technical and professional standards. The effective monitoring is done through an on-going programme of review of published financial statements audited by members. The objective is to determine whether there are any departures from approved accounting standards, listing regulations and statutory financial reporting requirements. Any observations of non-compliance will be communicated to the members responsible to seek explanation. In cases of significant departures, follow-up reviews will be carried out to ensure that these have been rectified.
The thrust of the review process is to assist members maintain high standards in the performance of their work. However, in cases where significant shortcomings are discovered, a complaint may be made to the Investigation Committee.
The Committee is pleased to report that members support the objective of the review process as evidenced by the positive response to matters raised by the Committee.
Overall Excellence Award – Most Outstanding Annual Report of the Year won by Telekom Malaysia Bhd.
Young CPA Group’s Visit to Shelter Home. Winners of NACRA 2006.
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Students’ Statistics
Num
ber
of S
tude
nts
2002 2003 2004 2005 2006
Stream I
Stream II
Special Stream II
2006 2005
Number of registered students at January 1 821 675
Registration during the year 147 303
Less:
Admitted to membership/provisional membership, 209 157 excluded or terminated
Number of registered students at December 31 759 821
NET INCREASE/(DECREASE) (62) 146
572
62
125
As at December 31, 2006
Qualification Stream Stream Special Total I II Stream II
STPM or Equivalent 0 2 0 2 1
DIA 0 2 0 2 0
Accounting Degrees 381 42 125 548 513
Other Degrees 3 9 0 12 3
Sub-total 384 55 125 564 517
Completed trainingcontract but not 188 7 0 195 304examination
GRAND TOTAL 572 62 125 759 821
714
166
571
118
46
527
92
56
607
65
149
Total as at
December 31, 2005
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Investigation and Disciplinary
During the year under the review, the Investigation Committee considered two cases of complaints, one of which was brought forward from the previous year. The Committee has completed the inquiry into one of the cases and had made an order against the member concerned by consent that the member be reprimanded and fined. The remaining one case was under consideration at the time of this report.
The Disciplinary Committee received and heard one new case of complaint during the period. The new case and one other case of complaint, which arose from the previous year were still under consideration.
International Relations
In recognition of the increasingly global nature of business and the accountancy profession itself, the Institute seeks opportunities to participate in international professional organisations and maintains alliances with fellow professional bodies around the world.
The Institute participates actively in the work of IFAC. Two of our Council members are currently serving on the IFAC Board – YBhg Datuk Dr Abdul Samad Hj Alias as a Board member and Mr Beh Tok Koay as a Technical Advisor. We maintain an active involvement in the International Auditing and Assurance Standards Board (IAASB) of IFAC. Mr Sukanta K Dutt is a member of the IAASB and has completed his term in December 2006. During his term, he had chaired two of its task force.
The Institute maintains on-going professional relationships with fellow professional bodies around the world to promote interchange of information and sharing of technical resources.
Registered Students
During the year, the Institute registered a total of 147 new students comprising predominantly graduates with accounting degrees. As compared to previous year, there had been a significant decline in new student intake of 51% due to increased competition from foreign accountancy bodies. After taking into account 63 students who were excluded from the register of students for non-payment of annual fees, 96 students
who terminated their registration and 50 students who were admitted as members or provisional members, the total number of students stood at 759 as at December 31, 2006. This represented a decline in student population by 8% compared to 2005.
The recruitment drive and promotion of the value of the CPA Malaysia qualification will be the Institute’s most important strategy in the coming year. As highlighted in the earlier pages of this Report, further steps will also be undertaken to enhance the CPA recognition status at the international level. Some of these initiatives will take time to bear results. In the meantime, the support of members in implementing the CPA programme within the members’ organisations and in encouraging new recruits to pursue the CPA qualification is vital.
Training Schemes
The Institute provides for two streams of training.
Stream I is the traditional route of training where a student works in the office of a CPA in public practice under a training contract, and sits for the CPA examination at the same time. This stream of training is targeted at students who plan to build a career in public accounting practice.
Stream II is designed for students who wish to seek a career in commerce, industry or the public sector. The students are not required to enter into a training contract but must maintain a training log book as a record of their practical experience, which must be obtained in an approved training organisation (ATO) under the supervision of a member of the Institute or one of the professional bodies approved by the Institute. The students may undertake the CPA examination prior to the commencement of practical training or during the training period.
The Institute also provides for a special stream of registration for students in the final year programme of an approved degree in accountancy who wish to enroll for the Modules C and D of the Advanced Stage Examination.
At December 31, 2006, a total of 572 students were registered under Stream I, 62 students under Stream II and 125 students under Special Stream II. There are over 90 ATOs providing CPA training under Stream II.
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Examination
A total of 584 examination entries were received from registered students for the May and November examinations in 2006. This comprised 12 entries for the Professional Stage Examination and 572 entries for the Advanced Stage Examination. In addition, 10 candidates sat for the Admitting Examination which comprises two papers, i.e. Malaysian Taxation and Regulatory and Financial Reporting Framework of Malaysia, for the purpose of gaining admission to membership under bye-law 33(d) [now bye-law 34(1)(f)].
The total number of examination entries dropped by 3.2% compared to 2005. The decline was attributed to the continued drop in examination entries for Professional Stage Examination (PSE) as a result of low intake for students pursuing PSE.
There was no examination entries received for Module E, Advanced Auditing & Assurance in the November 2006 examination due to transitional arrangement arising from the restructuring of the existing Module D. The revised Module D, Advanced Financial Reporting and new Module E, Advanced Auditing & Assurance had been implemented with effect from the November 2006 examination.
Enrolment for MICPA Examinations
No. of Candidates
2006 2005
Professional Stage Examination
Module A 6 17
Module B 6 24
Advanced Stage Examination
Module C 162 280
Module D 259 191
* Module E / F 151 91
Bye-law 33(d) candidates 10 22
* The old Module E has been re-coded as Module F in the November 2006 examination
Education and Training
The Education and Training Committee is charged with two major areas of responsibilities – to conduct education and training programmes for students and to deliver CPD courses for members.
The student enrolment statistics show that 5.8% of the students are pursuing the Professional Stage Examination (consisting of Modules A and B of three papers each) and 94.2% are pursuing the Advanced Stage Examination (consisting of Modules C, D, E and F of one paper each). The highly skewed statistics is due to the fact that a large majority of the students are accounting graduates who are exempted from the Professional Stage Examination.
The Advanced Stage Examination requires students to successfully complete a prescribed quantum of workshops before they are eligible to sit for the final module examination. A student’s performance in a module will be based on two assessment components, which is the combination of his performance in the workshop sessions (30%) and achievement in the final module examination (70%). A student is required to attend a series of 5 to 7 workshop sessions for each module, each of 4 hours duration.
A total of 676 students enrolled for the workshop sessions for Modules C, D, E and F in 2006. This represented a marginal drop in enrolment by 3% compared to the previous year. Based on feedback from students, these interactive workshops were effective in enhancing their communication and research skills, as well as in charting their progress throughout the learning process.
The Committee is responsible for the planning and organising CPD programmes for members. The Institute continued to organise CPD programmes in the form of seminars, workshops and forums, covering a wide range of topic, throughout the year for the benefit of members.
In June 2006, the Institute introduced a new professional qualification, which carries the designation Certified Financial Accountant (CFiA). The CFiA is designed to assist accounting graduates to achieve a professional qualification that meets the benchmarks set by the International Federation of Accountants (IFAC). The CFiA qualification will equip the accounting graduates with the knowledge and competences expected of a professional accountant in business. They will be well qualified to build a career in accounting, finance and management in both the business and public sectors.
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The Institute intends to promote the CFiA qualification to Bachelor of Accountancy graduates. The Certified Financial Accountant (CFiA) designation will be awarded to persons who possess a recognised degree in accountancy who have completed the CFiA Professional Competence Programme and obtained the relevant 3 years’ approved practical experience. Alternatively, students who have completed Modules C and D of the Advanced Stage Examination and having obtained the relevant 3 years’ approved practical experience may be admitted as members who are entitled to use the designation Certified Financial Accountant (CFiA).
The CFiA Professional Competence Programme comprises 60 hours of interactive workshops and consists of 4 modules. The candidates’ professional capabilities and competencies will be assessed through a combination of written assignments, quizzes/tests, project papers and integrative case studies.
The Institute has embarked on an active programme to promote the CFiA qualification to public universities. Presentations have been made to the accounting faculties on the implementation and merits of the CFiA qualification.
MACPA Educational Trust Fund
The MACPA Educational Trust Fund (ETF) continued to pursue its objects to promote education and research in accountancy and related fields.
The Trust Fund continues to provide financial assistance to young Malaysians with outstanding academic record but who are financially handicapped to pursue a higher accountancy qualification.
The Trust Fund has provided six study loans in 2006 to university students for pursuing the Institute’s Advanced Stage Examination. Currently, a total of twelve students are under the ETF study loan scheme.
In the area of research, the Trust Fund has in 2003 commissioned Universiti Utara Malaysia to carry out the project on auditor remuneration. The project is to examine the determinants of audit fees in Malaysia, the impact of non-audit service fees on audit fees, and a comparison of the level of audit fees in Malaysia with that in East Asia economies.
The Trust Fund has in August 2006 approved Universiti Utara Malaysia to carry out the second stage of data collection from target respondents for the project on auditor remuneration. The project is still in progress.
Acknowledgement
It has been a great honour and privilege for me to have served as the President of MICPA for a third term and I must say that the role has been challenging, demanding and yet rewarding. It gave me the opportunity to represent the Institute on various occasions, to meet with members and discuss current issues of concern to the profession, and to contribute to the leadership and development of the Institute.
In carrying out my presidential duties, I have relied a lot on the sound advice and unfailing support and co-operation of my fellow colleagues on the Council. I would like to express my sincere gratitude to each and everyone of them, especially to my Vice-President, YBhg Dato’ Nordin Baharuddin and Immediate Past President, Mr Beh Tok Koay. I would also like to thank all members and volunteers who have contributed their time and expertise in the Institute’s committee work. It is the input of their technical knowledge and expertise that has enabled the Institute to maintain its highest standards of technical excellence.
At the heart of the Institute’s activities is, of course, the Secretariat who play a vital role in executing the policies and strategies set by the Council. It has been a great year of change and constant demand, of review and realignment, and staff have risen magnificently to the challenges presented them.
On behalf of the Council, I wish to acknowledge our indebtedness to Ms Tan Shook Kheng, Executive Director, for the sheer effort and advances made by the Institute under her able leadership for the past 23 years. Ms Tan Shook Kheng will be retiring from her post as Executive Director effective August 2007 and our best wishes are with her.
Looking to the future, we have recruited a new Chief Operating Officer, Mr Foo Yoke Pin, to lead the Institute and I would like to welcome him on board. With Council’s vision and guidance, contributions of members and professionalism of staff, it is my desire to see the Institute grow from strength to strength in the years ahead in accounting education and practice but more importantly to continue to serve the community with technical excellence.
“MICPA will continue to be in the ascendancy and scale greater heights.”
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Technical Pronouncements May 2007
A Approved Accounting Standards and Guidelines
Statement of Approved Accounting Standards (Issued 1988)
(a) MASB Approved Accounting Standards for Entities Other than Private Entities*
Extant Accounting MASB Standards Operational Superseded Date
ForewordtoMASBStandardsandOtherTechnicalPronouncements(Revised) Jul.1,1999
FRS1 First-timeadoptionofFinancialReportingStandards Jan.1,2006
FRS2 Share-basedPayment Jan.1,2006
FRS3 BusinessCombinations FRS1222004 Jan.1,2006
FRS5 Non-currentAssetsHeldforSaleandDiscontinuedOperations FRS1352004 Jan.1,2006
FRS6 ExplorationforandEvaluationofMineralResources Jan.1,2007
FRS101 PresentationofFinancialStatements FRS1012004 Jan.1,2006
FRS102 Inventories FRS1022004 Jan.1,2006
FRS1072004 CashFlowStatements IAS7(Revised) Jul.1,1999
FRS108 AccountingPolicies,ChangesinAccountingEstimatesandErrors FRS1082004 Jan.1,2006
FRS110 EventsAftertheBalanceSheetDate FRS1102004 Jan.1,2006
FRS1112004 ConstructionContracts IAS11 Jul.1,1999
FRS1122004 IncomeTaxesIAS12 Jul.1,2002
FRS1142004 SegmentReporting IAS14 Jan.1,2002
FRS116 Property,PlantandEquipment FRS1162004 Jan.1,2006
FRS117 Leases FRS1172004Oct.1,2006
FRS1182004 Revenue IAS18 Jan.1,2000
FRS1192004 EmployeeBenefits IAS19 Jan.1,2003
AmendmenttoFinancialReportingStandardFRS1192004 EmployeeBenefits–Actuarial Gains and Losses, Group Plans and Disclosures Jan.1,2007
FRS1202004 AccountingforGovernmentGrantsandDisclosureof IAS20 Jan.1,2004 GovernmentAssistance (Informationonly)
FRS121 TheEffectsofChangesinForeignExchangeRates IAS21 Jan.1,2006
AmendmenttoFinancialReportingStandardFRS121 TheEffectsofChangesinForeignExchangeRates– Net Investment in a Foreign Operation Jul.1,2007
FRS1232004 BorrowingCosts IAS23 Jul.1,2002
FRS124 RelatedPartyDisclosures FRS1242004 Oct.1,2006
FRS1262004 AccountingandReportingbyRetirementBenefitPlans IAS26 Jan.1,2003
FRS127 ConsolidatedandSeparateFinancialStatements FRS1272004 Jan.1,2006
FRS128 InvestmentsinAssociates FRS1282004 Jan.1,2006
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Extant Accounting MASB Standards Operational Superseded Date
FRS1292004 FinancialReportinginHyperinflationaryEconomies IAS29 Jan.1,2003
FRS131 InterestsinJointVentures FRS1312004 Jan.1,2006
FRS132 FinancialInstruments:DisclosureandPresentation FRS1322004 Jan.1,2006
FRS133 EarningsPerShare FRS1332004 Jan.1,2006
FRS1342004 InterimFinancialReporting IAS34 Jul.1,2002
FRS136 ImpairmentofAssets FRS1362004 Jan.1,2006
FRS1372004 Provisions,ContingentLiabilitiesandContingentAssets IAS10 Jul.1,2001
FRS138 IntangibleAssets FRS1092004 Jan.12006
FRS140 InvestmentProperty FRS1252004 Jan.1,2006
FRS2012004 PropertyDevelopmentActivities MAS7 Jan.1,2004
FRS2022004 GeneralInsuranceBusiness MAS3 Jul.1,2001
FRS2032004 LifeInsuranceBusiness MAS4 Jul.1,2001
FRS2042004 AccountingforAquaculture MAS5 Sep.1,1998
Note:
* FRSareapplicabletoallentitiesotherthanprivateentities FRSxxcorrespondstotheequivalentIFRSissuedbytheIASB. FRSwith100prefixcorrespondstotheequivalentIAS.Hence,FRS112isequivalenttoIAS12. FRSwith200prefixdenoteslocallydevelopedstandardswithnoequivalentinternationalstandard.
(b) MASB Approved Accounting Standards for Private Entities (PERS)**
MASBOriginal OperationalDate
MASB1 PresentationofFinancialStatements Jul.1,1999
MASB2 Inventories Jul.1,1999
MASB3 NetProfitorLossforthePeriod,FundamentalErrorsandChangesin AccountingPolicies Jul.1,1999
MASB4 ResearchandDevelopmentCosts Jul.1,1999
MASB5 CashFlowStatements Jul.1,1999
MASB6 TheEffectsofChangesinForeignExchangeRates Jul.1,1999
MASB7 ConstructionContracts Jul.1,1999
MASB9 Revenue Jan.1,2000
MASB10 Leases Jan.1,2000
MASB11 ConsolidatedFinancialStatementsandInvestmentsinSubsidiaries Jan.1,2000
MASB12 InvestmentsinAssociates Jan.1,2000
MASB14 DepreciationAccounting Jul.1,2000
MASB15 Property,PlantandEquipment Jul.1,2000
MASB16 FinancialReportingofInterestsinJointVentures Jul.1,2000
MASB19 EventsaftertheBalanceSheetDate Jul.1,2001
MASB20 Provisions,ContingentLiabilitiesandContingentAssets Jul.1,2001
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MASBOriginal OperationalDate
MASB23 ImpairmentofAssets Jan.1,2002
MASB25 IncomeTaxes Jul.1,2002
MASB27 BorrowingCosts Jul.1,2002
MASB28 DiscontinuingOperations Jan.1,2003
MASB29 EmployeeBenefits Jan.1,2003
MASB30 AccountingandReportingbyRetirementBenefitPlans Jan.1,2003
MASB31 AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance Jan.1,2004
MASB32 PropertyDevelopmentActivities Jan.1,2004
IAS25 AccountingforInvestments Jan.1,1993
IAS29 FinancialReportinginHyperinflationaryEconomies Jan.1,2003
MAS5 AccountingforAquaculture Sep.1,1998
IB-1 PreliminaryandPre-operatingExpenditure Jan.1,2001
** PERSisasetofaccountingstandardsissuedoradoptedbyMASBforapplicationbyallprivateentities.
AprivateentityisaprivatecompanyincorporatedundertheCompaniesAct1965that-
• is not itself required to prepare or lodge any financial statements under any law administrated by the SecuritiesCommissionorBankNegaraMalaysia;and
• isnotasubsidiaryorassociateoforjointlycontrolledbyanentitywhichisrequiredtoprepareorlodgeanyfinancialstatementsunderanylawadministeredbytheSecuritiesCommissionorBankNegaraMalaysia.
(c) Malaysian Accounting Standards Board (MASB) Islamic Accounting Standards
MASB OperationalDate
FRSi-12004 PresentationofFinancialStatementsofIslamicFinancialInstitutions Jan.1,2003
FRSwithi prefixdenotesanIslamicfinancialreportingstandard.
(d) MASB IC Interpretations
MASB OperationalDate
Preface
ICInterpretation107 IntroductionoftheEuro Jan.1,2006
ICInterpretation110 GovernmentAssistance-NoSpecificRelationtoOperatingActivities Jan.1,2006
ICInterpretation112 Consolidation-SpecialPurposeEntities Jan.1,2006
ICInterpretation113 JointlyControlledEntities-Non-MonetaryContributionsbyVenturers Jan.1,2006
ICInterpretation115 OperatingLeases-Incentives Jan.1,2006
ICInterpretation121 IncomeTaxes-RecoveryofRevaluedNon-DepreciableAssets Jan.1,2006
ICInterpretation125 IncomeTaxes-ChangesintheTaxStatusofanEntityoritsShareholders Jan.1,2006
ICInterpretation127 EvaluatingtheSubstanceofTransactionsInvolvingtheLegalFormofaLease Jan.1,2006
ICInterpretation129 Disclosure-ServiceConcessionArrangements Jan.1,2006
ICInterpretation131 Revenue-BarterTransactionsInvolvingAdvertisingServices Jan.1,2006
ICInterpretation132 IntangibleAssets-WebSiteCosts Jan.1,2006
ICInterpretation201 PreliminaryandPre-operatingExpenditure Jan.1,2001
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MASB OperationalDate
ICInterpretation1 ChangesinExistingDecommissioning,RestorationandSimilarLiabilities Jul.1,2007
ICInterpretation2 Members’SharesinCo-operativeEntitiesandSimilarInstruments Jul.1,2007
ICInterpretation5 RightstoInterestsarisingfromDecommissioning,Restorationand EnvironmentalRehabilitationFunds Jul.1,2007
ICInterpretation6 LiabilitiesarisingfromParticipatinginaSpecificMarket– WasteElectricalandElectronicEquipment Jul.1,2007
ICInterpretation7 ApplyingtheRestatementApproachunderIAS29 Financial Reporting in Hyperinflationary Economies Jul.1,2007
ICInterpretation8 ScopeofFRS2 Jul.1,2007
The numbering of the IC Interpretation corresponds to the Interpretation issued by the IFRIC and SIC respectively.For example, IC Interpretation 1 in Malaysia is equivalent to IFRIC Interpretation 1. IC Interpretation with a‘100 prefix’ corresponds to its equivalent SIC-Interpretation. Thus, IC Interpretation 112 is equivalent to SIC-12.ICInterpretationwitha‘200prefix’denoteslocallydevelopedinterpretationwithnoequivalentinternationalinterpretation.Inthisregard,theexistingInterpretationBulletinIPreliminaryandPre-operatingExpenditureisrenamedasICInterpretation201.
Hence,ICInterpretation1=IFRICInterpretation1ICInterpretation112=SIC-12ICInterpretation201=locallydevelopedinterpretation
(e) MASB Technical Releases (TR)
MASB OperationalDate
TR1 ShareBuybacks-AccountingandDisclosures(RevisedApril1999) Jan.1,1999
TR2 TheYear2000Issue:AccountingandDisclosure Jul.31,1998
TRi-1 AccountingforZakatonBusiness Jul.1,2006
TRi-2 Ijarah Jul.1,2006
(f) MASB Statement of Principles (SOP)
MASB IssueDate
SOP1 ExemptEnterprises Jul.2000
SOP2 InterimFinancialReporting [SupersededbyFRS1342004]
(g) International Accounting Standards (IAS)
MICPA MASB IASB Operational Operational Operational Date Date Date
IAS25 AccountingforInvestments 1993 1998 1987
(h) Malaysian Accounting Standards (MAS)
MICPA MASB Operational Operational Date Date
(i) Issued
MAS1 EarningsPerShare(issuedJan.1984) [SupersededbyFRS133]
MAS2 AccountingforAcquisitionsandMergers(issuedJan.1989) [SupersededbyFRS3]
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MICPA MASB Operational Operational Date Date
MAS3 AccountingforGeneralInsuranceBusiness(issuedJan.1992) [SupersededbyFRS2022004]
MAS4 AccountingforLifeInsuranceBusiness(issuedJan.1992) [SupersededbyFRS2032004]
MAS5 AccountingforAquaculture(issuedJan.1992) [SupersededbyFRS2042004]
MAS7 AccountingforPropertyDevelopmentActivities(issuedJan.1994) [SupersededbyFRS201]
MAS8 AccountingforPre-CroppingCosts 1997 –
(ii) Exposure Draft
MAS6 AccountingforGoodwill [SupersededbyFRS3]
(i) MICPA Technical Bulletins (TB)
MICPA IssueDate
TB1 AccountingforInvestments(issued1982) [SupersededbyIAS25]
TB2 AccountingforLandHeldforDevelopmentandResale(issued1982) [SupersededbyMAS7]
TB3 AccountingforMalaysianGovernmentSecurities(issued1983) Withdrawn
TB4 ReportinginConnectionwiththeCapitalAdequacyRatioofBanks Apr.1983
TB5 AccountingfortheAcquisitionCostsofAssetsinaSubsidiary(issued1984) [SupersededbyIAS27]
TB6 Auditor’sReportsonFinancialStatementsPublishedinthePrintMediaby FinancialInstitutions Apr.1988
TB7 AccountingforBankers’Acceptances Jan.1989
TB8 AccountingforProfitGuaranteeandOtherContingenciesinBusinessAcquisitions Dec.1995
B Approved Auditing and Assurance Standards and Guidelines
StatementofPolicyofCouncil-ApprovedAuditingStandards(issuedJan.2000)
IAG/ISA MICPA IFAC Superseded IssueDate IssueDateStructureofAuditingandAssuranceStandardsandGuidelinesIssuedbytheMICPA – Sept.2006 –
PrefacetoInternationalStandardsonQualityControl,Auditing,Review,OtherAssuranceandRelatedServices – Sept.2006 Dec.2005
GlossaryofTerms – May2007 Dec.2005
(a) International Standards on Quality Control (ISQC)
IAG/ISA MICPA IFAC Superseded Operational Operational Date Date
ISQC1 QualityControlforFirmsthatPerformAuditsand Requirements Requirements ReviewsofHistoricalFinancialInformation,and tobeestablished tobeestablished OtherAssuranceandRelatedServicesEngagements – byJul.2006 byJun.15,2006
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IAG/ISA MICPA IFAC Superseded Operational IssueDate Date
(b) Framework
InternationalFrameworkforAssuranceEngagements ISA120 Jan.2007 Jan.2005
(c) International Standards on Auditing (ISA)
ISA100 AssuranceEngagements – withdrawn withdrawn (Jan.2007) (Dec.2004)
ISA120 FrameworkofInternationalStandardsonAuditing – withdrawn withdrawn (Jan.2007) (Dec.2004)
ISA200 ObjectiveandGeneralPrinciplesGoverning IAG1& Jan.2006 Oct.2003 anAuditofFinancialStatements IAG3
ISA210 TermsofAuditEngagements IAG2 Jan.2000 Jul.1994
ISA220 QualityControlforAuditofHistoricalFinancial IAG7 Jan.2006 Feb.2004(Revised) Information
ISA230 AuditDocumentation IAG9 Jan.2008 Sept.2005(Revised)
ISA240 TheAuditor’sResponsibilitytoConsiderFraud IAG11 Jan.2006 Feb.2004(Revised) inanAuditofFinancialStatements
ISA250 ConsiderationofLawsandRegulations ISA31 Jan.2000 Jul.1994 inanAuditofFinancialStatements
ISA260 CommunicationsofAuditMatterswith – Dec.2002 Jun.1999 ThoseChargedwithGovernance
ISA300 PlanninganAuditofFinancialStatements IAG4 Jul.2006 Jun.2004(Revised)
ISA310 KnowledgeoftheBusiness ISA30 withdrawn withdrawn (Jan.2006) (Dec.2004)
ISA315 UnderstandingtheEntityandItsEnvironment IAG25& Jan.2006 Dec.2004 andAssessingtheRisksofMaterialMisstatement ISA310
ISA320 AuditMateriality IAG25 Jan.2000 Jul.1994
ISA330 TheAuditor’sProceduresinResponsetoAssessedRisks – Jan.2006 Oct.2003
ISA402 AuditConsiderationsRelatingtoEntitiesUsing IAG6 Jan.2000 Jul.1994 ServiceOrganisations Addendum2
ISA500 AuditEvidence IAG8 Jan.2006 Oct.2003
ISA501 AuditEvidence-AdditionalConsiderationsfor IAG8 Jan.2000 Jul.1994 SpecificItems Addenda1&2
ISA505 ExternalConfirmations – Dec.2002 Jun.2000
ISA510 InitialEngagements-OpeningBalances IAG28 Jan.2000 Jul.1994
ISA520 AnalyticalProcedures IAG12 Jan.2000 Jul.1994
ISA530 AuditSamplingandOtherSelectiveTestingProcedures IAG19 Jan.2000 Jul.1994
ISA540 AuditofAccountingEstimates IAG26 Jan.2000 Jul.1994
ISA545 AuditingFairValueMeasurementsandDisclosures – Jul.2006 Jul.2002
ISA550 RelatedParties IAG17 Jan.2000 Jul.1994
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IAG/ISA MICPA IFAC Superseded Operational IssueDate Date
ISA560 SubsequentEvents IAG21 Jan.2000 Jul.1994
ISA570 GoingConcern IAG23 Dec.2002 Jul.2000
ISA580 ManagementRepresentations IAG22 Jan.2000 Jul.1994
ISA600 UsingtheWorkofAnotherAuditor IAG5 Jan.2000 Jul.1994
ISA610 ConsideringtheWorkofInternalAudit IAG10 Jan.2000 Jul.1994
ISA620 UsingtheWorkofanExpert IAG18 Jan.2000 Jul.1994
ISA700 TheAuditor’sReportonFinancialStatements IAG13 Jan.2000 Jul.1994 MAG1& ATR1
ISA700 TheIndependentAuditor’sReportonaComplete ISA700 Jul.2008 Dec.2004(Revised) SetofGeneralPurposeFinancialStatements
ISA710 Comparatives – Jan.2000 Jul.1997
ISA720 OtherInformationinDocumentsContaining IAG14 Jan.2000 Jul.1994 AuditedFinancialStatements
ISA800 TheIndependentAuditor’sReporton IAG24 Jan.2000 Jul.1994 SpecialPurposeAuditEngagements
(c) International Auditing Practice Statements (IAPS)
MICPA IFAC IssueDate IssueDate
IAPS1000 Inter-BankConfirmationProcedures Jan.2000 Jul.1994
IAPS1001 ITEnvironments-Stand-AlonePersonalComputers Dec.2002 withdrawn (Dec.2004)
IAPS1002 ITEnvironments-On-LineComputerSystems Dec.2002 withdrawn (Dec.2004)
IAPS1003 ITEnvironments-DatabaseSystems Dec.2002 withdrawn (Dec.2004)
IAPS1004 TheRelationshipbetweenBankingSupervisorsand Sept.2006 Dec.2001 Banks’ExternalAuditors
IAPS1005 TheSpecialConsiderationsintheAuditofSmallEntities May2007 Oct.2003
IAPS1006 AuditsoftheFinancialStatementsofBanks Aug.2003 Dec.2001
IAPS1007 CommunicationswithManagement withdrawn withdrawn (Jan.2006) (Jun.2001)
IAPS1008 RiskAssessmentsandInternalControl withdrawn withdrawn (Jan.2006) (Dec.2004)
IAPS1009 Computer-AssistedAuditTechniques Jan.2000 withdrawn (Dec.2004)
IAPS1010 TheConsiderationofEnvironmentalMattersintheAuditof Jan.2000 Mar.1998 FinancialStatements
IAPS1011 ImplicationsforManagementandAuditorsoftheYear2000Issue withdrawn withdrawn (Jun.2001)
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MICPA IFAC IssueDate IssueDate
IAPS1012 AuditingDerivativeFinancialStatements Sept.2006 Mar.2001
IAPS1013 ElectronicCommerce–EffectontheAuditofFinancialStatements Aug.2003 Mar.2002
IAPS1014 ReportingbyAuditorsonCompliancewithInternational FinancialReportingStandards May2007 Jun.2003
(d) International Standards on Review Engagements (ISREs)
IAG/ISA MICPA IFAC Superseded OperationalDate IssueDate
ISRE2400 EngagementstoReviewFinancialStatements IAG/ Jan.2000 Jul.1994 (PreviouslyISA910) RS1&2
ISRE2410 ReviewofInterimFinancialInformationPerformed bytheIndependentAuditoroftheEntity Jul.2007 Jul.2005
(e) International Standards on Assurance Engagements (ISAEs)
ISAE3000 AssuranceEngagementsOtherthanAuditsor(Revised) ReviewsofHistoricalFinancialInformation ISA100 Jan.2007 Dec.2003
ISAE3400 TheExaminationofProspectiveFinancialInformation IAG27 Jan.2000 Jul.1994 (PreviouslyISA810)
(f) International Standards on Related Services (ISRSs)
ISRS4400 EngagementstoPerformAgreed-uponProcedures IAG/ Jan.2000 Jul.1994 RegardingFinancialInformation RS3 (PreviouslyISA920)
ISRS4410 EngagementstoCompileFinancialInformation IAG/RS4 Jan.2000 Jul.1994 (PreviouslyISA930)
(g) Malaysian Auditing Guidelines (MAG)
MICPA IssueDate
MAG1 Auditor’sReports:FormsandQualifications(issued1988) [SupersededbyISA700]
(h) MICPA Auditing Technical Releases (ATR)
MICPA IssueDate
ATR1 AuditReportExamples(issuedApr.1988) [SupersededbyISA700]
ATR2 StandardLetterofRequestforInformationfromBanks/ May1990 FinanceCompaniesforAuditPurposes
ATR3 Accountants’ReportforProspectus(issuedJan.1989) [SupersededbyISA810]
ATR4 ReportinginConnectionwithSubmissionofProposalsto [SupersededbyISA810] CapitalIssuesCommittee(issuedMay1990)
ATR5 GuidanceforAuditorsontheReviewofDirectors’StatementonInternalControl Mar.2002
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C MICPA Guidelines for Accounting in Public Sector (GAPS) MICPA IssueDate
PrefacetoGuidelinesforAccountinginPublicSector Jan.1992
GAPS1 PublicSectorAccountingConcepts Jan.1992
D MICPA Insolvency Guidance Notes (IG) MICPA IssueDate
PrefacetoInsolvencyGuidanceNotes Nov.1992
IG1 MinimumStandardsofPracticebyInsolvencyPractitioners Nov.1992
IG2 AReceiver’sResponsibilityfortheBooksandRecordsoftheCompany Jul.1994
IG3 ALiquidator’sInvestigationintotheAffairsofanInsolventCompany Jul.1994
IG4 ProcedureforWindingUpanInsolventCompanyVoluntarily Dec.1997
IG5 Members’VoluntaryWindingUp Dec.1997
IG6 PreparationofStatementofReceiptsandPaymentsbyInsolvencyPractitioners Aug.1998
IG7 ProfessionalConductandEthicsinInsolvencyPractice Aug.1998
IG8 SuggestedReceivershipChecklist Aug.1998 (ForReceiver&ManagerAppointedunderaDebenture)
E Statements on International Management Accounting
MICPAStatementonInternationalManagementAccountingStatements(issuedDec.1992)
(a) Statements on International Management Accounting Practices (MAP)
MICPA IFAC IssueDate IssueDate
PrefacetoStatementsonInternationalManagementAccounting Dec.1992 Feb.1987
MAP1 ManagementAccountingConcepts(Revised1998) Aug.1998* Mar.1998
MAP2 TheCapitalExpenditureDecision Dec.1992 Oct.1989
MAP3 ForeignCurrencyExposureandRiskManagement Sep.1993 Jul.1990
MAP4 ManagementControlofProjects Jul.1993 Oct.1991
MAP5 ManagingQualityImprovements Sep.1993 Mar1993
MAP6 PostCompletionReview Nov.1994 Apr.1994
MAP7 StrategicPlanningforInformationResourceManagement Nov.1996* Feb.1996
(b) Statements on International Management Accounting Studies (IMAS)
MICPA IFAC IssueDate IssueDate
(i) Issued
IMAS3 AnIntroductiontoStrategicFinancialManagement(Revised1995) Jul.1993 Apr.1988
IMAS4 ReportingTreasuryPerformance-AFrameworkforTheTreasuryPractitioner Apr.1996* Sep.1995
IMAS5 TheRoleofManagementAccountingintheEmergingTeamApproachtoWork May1996* Sep.1995
IMAS6 EnvironmentalManagementinOrganisations-TheRoleof ManagementAccounting Aug.1998* Mar.1998
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MICPA IFAC IssueDate IssueDate
IMAS7 TheMeasurementandManagementofIntellectualCapital Apr.1999* Dec.1998
IMAS8 CodifyingPowerandControl:EthicalCodesinAction Sep.1999* May1999
IMAS9 EnhancingShareholderWealthbyBetterManagingBusinessRisk Sep.1999* Jun.1999
IMAS10 TargetCostingforEffectiveCostManagement Sep.1999* Jun.1999
* Reviewed by MICPA and issued to members on request basis
(ii) Being considered by MICPA for Issuance
IMAS11 AProfessionTransforming:FromAccountingtoManagement – Mar.2001
F MICPA Statements MICPA IssueDate
No.1 RecommendationsonthePresentationsofAccounts(issued1972) [SupersededbyIAS1]
No.2 AuditReportsandQualifications(issued1972) [SupersededbyMAG1]
No.3 Accountants’ReportforProspectuses(issued1976) [SupersededbyATR3]
No.4 Directors’Report(issuedNov.1985) (Withdrawn) ModelHoldingsBerhad-SpecimenFinancialStatements(Revised) Jun.2004
No.5 StatementofSourceandApplicationofFunds(issued1981) [SupersededbyIAS7]
G Status of Other MASB Pronouncements
(a) MASB Exposure Draft
MASB IssueDate
ED26 FinancialReportingbyUnitTrusts Jun.2000
ED50 Agriculture Jan.2006
ED51 InsuranceContracts Jan.2006
ED52 PrivateEntityReportingStandards Jun.2006
ED53 FrameworkforthePreparationandPresentationofFinancialStatements Aug.2006
ED55 ProposedAmendmentstoFinancialReportingStandards Mar.2007
DraftICInterpretation9 ReassessmentofEmbeddedDerivatives Mar.2007
DraftICInterpretation10 InterimFinancialReportingandImpairment Mar.2007
H Status of Other International Standards on Auditing (ISA) and Exposure Drafts Issued by IAASB IFAC IssueDate
(a) ISAs Issued as MICPA Exposure Draft
ISA240(Redrafted) TheAuditor’sResponsibilitiesRelatingtoFraudintheAuditof FinancialStatements Jan.2007
ISA300(Redrafted) PlanninganAuditofFinancialStatements Jan.2007
ISA315(Redrafted) IdentifyingandAssessingtheRisksofMaterialMisstatement ThroughUnderstandingtheEntityandItsEnvironment Jan.2007
ISA330(Redrafted) TheAuditor’sResponsestoAssessedRisks Jan.2007
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IFAC IssueDate
(b) IAASB’s Exposure Drafts Issued as MICPA Exposure Draft
EDISA230(Redrafted) AuditDocumentation Dec.2006
EDISA260(Revised CommunicationwithThoseChargedwithGovernance andRedrafted) Oct.2006
EDISA320(Revised MaterialityinPlanningandPerforminganAudit andRedrafted) Nov.2006
EDISA450(Redrafted) EvaluationofMisstatementsIdentifiedduringtheAudit Nov.2006
EDISA540(Revised AuditingAccountingEstimates,IncludingFairValue andRedrafted) AccountingEstimates,andRelatedDisclosures
ProposedwithdrawalofISA545,AuditingFairValue MeasurementsandDisclosures Dec.2006
EDISA550(Revised RelatedParties andRedrafted) Mar.2007
EDISA560(Redrafted) SubsequentEvents Dec.2006
EDISA570(Redrafted) GoingConcern Mar.2007
EDISA580(Revised WrittenRepresentationsandRedrafted) Dec.2006
EDISA610(Redrafted) TheAuditor’sConsiderationoftheInternalAuditFunction Dec.2006
EDISA720(Redrafted) TheAuditor’sResponsibilityinRelationtoOtherInformationin DocumentsContainingAuditedFinancialStatements Dec.2006
(c) Being Considered by MICPA for Issuance
ISA600(Revised TheAuditofGroupFinancialStatements Mar.2006andRedrafted)
ISA705 ModificationstotheOpinionintheIndependentAuditor’sReport Mar.2005
ISA706 EmphasisofMatterParagraphsandOtherMattersParagraphs intheIndependentAuditor’sReport Mar.2005
I Status of Other Statements on International Management Accounting IFAC IssueDate
(a) Not Issued by MICPA
StudyNo.1 ControlofComputerApplications Oct.1985
ManagementAccountingConcepts(Revised1998) Mar.1998
J International Public Sector Accounting Standards (IPSAS) IFAC IssueDate
IntroductiontothePublicSectorCommitteeoftheInternationalFederationofAccountants Jul.1988
PrefacetoInternationalPublicSectorAccountingStandards(Revised) Jan.2007
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IFAC IssueDate
(a) Standards
IPSAS1 PresentationofFinancialStatements Jan.2007(Revised)
IPSAS2 CashFlowStatements May2000
IPSAS3 AccountingPolicies,ChangesinAccountingEstimatesandErrors Jan.2007(Revised)
IPSAS4 TheEffectsofChangesinForeignExchangeRates Jan.2007(Revised)
IPSAS5 BorrowingCosts May2000
IPSAS6 ConsolidatedandSeparateFinancialStatements Jan.2007(Revised)
IPSAS7 InvestmentsinAssociates Jan.2007(Revised)
IPSAS8 InterestsinJointVentures Jan.2007(Revised)
IPSAS9 RevenuefromExchangeTransactions Jun.2001
IPSAS10 FinancialReportinginHyperinflationaryEconomies Jun.2001
IPSAS11 ConstructionContracts Jun.2001
IPSAS12 Inventories Jan.2007(Revised)
IPSAS13 Leases Jan.2007(Revised)
IPSAS14 EventsAftertheReportingDate Jan.2007(Revised)
IPSAS15 FinancialInstruments:DisclosureandPresentation Dec.2001
IPSAS16 InvestmentProperty Jan.2007(Revised)
IPSAS17 Property,Plant&Equipment Jan.2007(Revised)
IPSAS18 SegmentReporting Jun.2002
IPSAS19 Provisions,ContingentLiabilitiesandContingentAssets Oct.2002
IPSAS20 RelatedPartyDisclosures Oct.2002
IPSAS21 ImpairmentofNonCash-GeneratingAssets Dec.2004
IPSAS22 DisclosureofInformationAbouttheGeneralGovernmentSector Dec.2006
IPSAS23 RevenuefromNon-ExchangeTransactions Dec.2006
IPSAS24 PresentationofBudgetInformationinFinancialStatements Dec.2006
IPSAS FinancialReportingundertheCashBasisofAccounting Jan.2003CASHBASIS
GlossaryofDefinedTermsIPSAS1toIPSAS24 Dec.2006
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(b) Guidelines
IFAC IssueDate
No.1 FinancialReportingbyGovernmentBusinessEnterprises Jul.1989
No.2 ApplicabilityofInternationalStandardsonAuditingtotheAudits ofFinancialStatementsofGovernmentBusinessEnterprises Jul.1990
No.3 ApplicabilityofInternationalStandardsonAuditingtotheAuditsofFinancial StatementsofGovernmentsandOtherNon-BusinessPublicSectorEntities Jan.1992
(c) Studies
Study1 FinancialReportingbyNationalGovernments Mar.1991
Study2 ElementsoftheFinancialStatementsofNationalGovernments Jul.1993
Study3 AuditingforCompliancewithAuthorities-APublicSectorPerspective Oct.1994
Study4 UsingtheWorkofOtherAuditors-APublicSectorPerspective Oct.1994
Study5 DefinitionandRecognitionofAssets Aug.1995
Study6 AccountingforandReportingLiabilities Aug.1995
Study7 PerformanceReportingbyGovernmentBusinessEnterprises Jul.1996
Study8 TheGovernmentFinancialReportingEntity Jul.1996
Study9 DefinitionandRecognitionofRevenue Dec.1996
Study10 DefinitionandRecognitionofExpenses/Expenditures Dec.1996
Study11 GovernmentFinancialReporting:AccountingIssuesandPractices May2000
Study12 PerspectivesonCostAccountingforGovernments Sep.2000
Study13 GovernanceinthePublicSector:AGoverningBodyPerspective Aug.2001
Study14 TransitiontotheAccrualBasisofAccounting: GuidanceforGovernmentsandGovernmentEntities(SecondEdition) Dec.2003
(d) Other Statements
InvitationtoComment:ImpairmentofAssets Jul.2000
K International Information Technology Guidelines IFAC IssueDate
(a) Guidelines
No.1 ManagingSecurityInformation Jan.1998
No.2 ManagingInformationTechnologyPlanningforBusinessImpact Jan.1999
No.3 AcquisitionofInformationTechnology May2000
No.4 TheImplementationofInformationTechnologySolutions May2000
No.5 ITServiceDeliveryandSupport May2000
No.6 ITMonitoring Apr.2002
(b) Exposure Draft
Outsourcing Dec.2001
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L International Education Standards for Professional Accountants IFAC
OperationalDate
FrameworkforInternationalEducationStatements
IES1 EntryRequirementstoaprogramofProfessionalAccountingEducation Jan.1,2005
IES2 ContentofProfessionalAccountingEducationPrograms Jan.1,2005
IES3 ProfessionalSkills Jan.1,2005
IES4 ProfessionalValues,EthicsandAttitudes Jan.1,2005
IES5 PracticalExperienceRequirements Jan.1,2005
IES6 AssessmentofProfessionalCapabilitiesandCompetence Jan.1,2005
IES7 ContinuingProfessionalDevelopment:AProgramofLifelongLearning Jan.1,2006andContinuingDevelopmentofProfessionalCompetence
IES8 CompetenceRequirementsforAuditProfessionals Jul.1,2008
IFAC IssueDate
M IFAC Code of Ethics for Professional Accountants (Revised) Jun.2005
IASB IssueDate
N Status of International Financial Reporting Standards
PrefacetoInternationalFinancialReportingStandards Apr.2002
FrameworkforthePreparationandPresentationofFinancialStatements Apr.2001
IASB OperationalDate
International Financial Reporting Standards (IFRSs)
IFRS1 First-timeAdoptionofInternationalFinancialReportingStandards Jan.1,2004
IFRS2 Share-basedPayment Jan.1,2005
IFRS3 BusinessCombinations Mar.31,2004
IFRS4 InsuranceContracts Jan.1,2005
IFRS5 Non-currentAssetsHeldforSaleandDiscontinuedOperations Jan.1,2005
IFRS6 ExplorationforandEvaluationofMineralResources Jan.1,2006
IFRS7 FinancialInstruments:Disclosures Jan.1,2007
IFRS8 OperatingSegments Jan.1,2009
International Accounting Standards (IASs)
IASB OperationalDate
IAS1 PresentationofFinancialStatements Jul.1,1998
IAS2 Inventories Jan.1,1995
IAS7 CashFlowStatements Jan.1,1994
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IASB OperationalDate
IAS8 NetProfitorLossforthePeriod,FundamentalErrorsandChangesinAccountingPolicies Jan.1,1995
IAS10 EventsAftertheBalanceSheetDate Jan.1,2000
IAS11 ConstructionContracts Jan.1,1995
IAS12 IncomeTaxes Jan.1,1998
IAS16 Property,PlantandEquipment Jul.1,1999
IAS17 Leases Jan.1,1999
IAS18 Revenue Jan.1,1995
IAS19 EmployeeBenefits Jan.1,2003
IAS20 AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance Jan.1,1984
IAS21 TheEffectsofChangesinForeignExchangeRates Jan.1,1995
IAS23 BorrowingCosts Jan.1,1995
IAS24 RelatedPartyDisclosures Jan.1,1986
IAS26 AccountingandReportingbyRetirementBenefitPlans Jan.1,2003
IAS27 ConsolidatedFinancialStatementsandAccountingforInvestmentsinSubsidiaries Jan.1,1990
IAS28 AccountingforInvestmentsinAssociates Jan.1,1990
IAS29 FinancialReportinginHyperinflationaryEconomies Jan.1,1990
IAS31 FinancialReportingofInterestsinJointVentures Jan.1,1992
IAS32 FinancialInstruments:DisclosureandPresentation(Revised2003) Jan.1,2005
IAS33 EarningsPerShare Jan.1,1998
IAS34 InterimFinancialReporting Jan.1,1999
IAS36 ImpairmentofAssets(Revised2004) Mar.31,2004
IAS37 Provisions,ContingentLiabilitiesandContingentAssets Jul.1,1999
IAS38 IntangibleAssets(Revised2004) Mar.31,2004
IAS39 FinancialInstruments:RecognitionandMeasurement(Revised2003) Jan.1,2005
IAS40 InvestmentProperty Jan.1,2001
IAS41 Agriculture Jan.1,2003
GlossaryofTerms
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NOTES :
(1) ApprovedAccountingStandardscomprise:
(a) MASBStandardsissuedbytheMalaysianAccountingStandardsBoard(MASB).
(b) ExtantInternationalFinancialReportingStandards(IFRS)adoptedbytheMICPAand/ortheMASB.
(c) ExtantMalaysianAccountingStandards(MAS)issuedbytheMICPAand/oradoptedbytheMASB.
MASBTechnicalReleases(TR)presenttheMASB’sviewsontheappropriateaccountingtreatmentanddisclosures. TR is an authoritative statement that may not have the legal standing of a MICPA standard but nonetheless, itsapplicationwouldbeconsideredmandatory.
TechnicalBulletinsandotherstatementsissuedbytheCounciloftheMICPArelatingtoaccountingaretoberegarded asopinionsonbestcurrentpracticeandthusformpartofgenerallyacceptedaccountingprinciples(GAAP).
(2) ApprovedAuditingStandardscomprise:
(a) International Standards onAuditing (ISA), International Standards onAssurance Engagements (ISAE), InternationalStandardsonReviewEngagements(ISRE)andInternationalStandardsonRelatedServices (ISRS)adoptedbytheMICPA
(b) MalaysianAuditingGuidelines(MAG)issuedbytheMICPA
Toenhancethestatusoftheinternationalauditingpronouncements,InternationalAuditingGuidelines(IAG)hasbeen redesignatedasInternationalStandardsonAuditing(ISA).
AuditingTechnicalReleasesandotherstatementsissuedbytheCounciloftheMICPArelatingtoauditingaretoberegarded asopinionsonthebestcurrentpracticeandthusformpartofgenerallyacceptedauditingstandards(GAAS).
(3) MASBStandardsareissuedbytheMalaysianAccountingStandardsBoard(MASB)establishedundertheFinancial ReportingAct1997.
(4) InternationalFinancialReportingStandards (IFRS)are issuedby the InternationalAccountingStandardsBoard(IASB)andISA,ISAE,ISRE,ISRSareissuedbytheInternationalAuditingandAssuranceStandardsBoard(IAASB)oftheInternationalFederationofAccountants(IFAC).
IASBisthestandard-settingbodyoftheInternationalAccountingStandardsCommitteeFoundation(IASCF)and hassoleresponsibilityforsettingaccountingstandards.
IAASB isestablishedby the IFACBoard todevelopand issue,under its ownauthority, standardsonauditing, assuranceandrelatedservicesengagements.
(5) TheMICPAconsidersallMASBStandards,ISA,ISAE,ISRE,ISRSandInternationalAuditingPracticeStatements (IAPS)forcompliancebymembers.IfthoughtappropriatetheyareissuedwithMICPAForewordasalocalexposure draftbeforeformaladoption.
(6) TheoperationaldatereferstofinancialstatementsforperiodsbeginningJanuary1oftheyearspecified.
(7) StatementsonInternationalManagementAccounting(IMAP)areissuedbytheFinancialandManagementAccounting Committee(FMAC)ofIFAC.TheseStatementsareintwoforms:
(a) InternationalManagementAccountingPractices
(b) InternationalManagementAccountingStudies
TheMICPAconsidersallIMAPforissuancetomembersforguidance.
(8) InternationalPublicSectorAccountingStandards,GuidelinesandStudiesareissuedbythePublicSectorCommittee (PSC)ofIFAC.
(9) MICPAGuidelinesforAccountinginPublicSector(GAPS)areissuedbytheCounciloftheMICPAandtheyaretobe regardedasopinionsonbestcurrentpracticerelatingtoaccountinginthepublicsector.
(10) MICPAInsolvencyGuidanceNotes(IG)areissuedbytheCounciloftheMICPAandtheyaretoberegardedasgood practiceinstatedareasofinsolvency.
(11) MICPAtechnicalpronouncementsaregivenanalphabeticalreferenceintheirdraftform(eg.MASC).Ontheirissueas definitivepronouncementsorexposuredrafts,anumericalreferenceisapplied.
(12) Uponitsinceptionin2001,theInternationalAccountingStandardsBoard(IASB)adoptedthebodyofInternational AccountingStandards(IASs)issuedbyitspredecessor,theInternationalAccountingStandardsCommittee(IASC).
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ANNUAL REPORT 2006
The Council has pleasure in submitting their report and the audited financial statements of the Institute for the financial year ended December 31, 2006.
PRINCIPAL ACTIVITY
The principal activity of the Institute is the advancement of the accountancy profession. There has been no significant change in this activity during the financial year.
RESULTS
RM Net operating surplus for the financial year 282,575
DIVIDENDS
In accordance with the Memorandum of Association, no dividends are payable to the members of the Institute.
RESERVES AND PROVISIONS
There were no material transfers to or from provisions during the financial year. The Institute does not have any reserve accounts.
BAD AND DOUBTFUL DEBTS
Before the income statement and balance sheet of the Institute were made out, the Council took reasonable steps to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and had satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts.
At the date of this report, the Council is not aware of any circumstances which would render the amount written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of the Institute inadequate to any material extent.
CURRENT ASSETS
Before the income statement and balance sheet of the Institute were made out, the Council took reasonable steps to ensure that any current assets which were unlikely to realise in the ordinary course of activities
their values as shown in the accounting records of the Institute have been written down to an amount that they might be expected to realise.
At the date of this report, the Council is not aware of any circumstances that would render the values attributed to the current assets in the financial statements of the Institute misleading.
VALUATION METHODS
At the date of this report, the Council is not aware of any circumstances which have arisen which would render adherence to the existing methods of valuation of assets or liabilities in the financial statements of the Institute misleading or inappropriate.
CONTINGENT AND OTHER LIABILITIES
At the date of this report, there does not exist:-
(i) any charge on the assets of the Institute that has arisen since the end of the financial year which secures the liabilities of any other person; or
(ii) any contingent liability in respect of the Institute that has arisen since the end of the financial year.
No contingent liability or other liability of the Institute has become enforceable, or is likely to become enforceable, within the period of twelve months after the end of the financial year which, in the opinion of the Council, will or may substantially affect the ability of the Institute to meet its obligations as and when they fall due.
CHANGE OF CIRCUMSTANCES
At the date of this report, the Council is not aware of any circumstances, not otherwise dealt with in this report or the financial statements of the Institute, that would render any amount stated in the financial statements misleading.
ITEMS OF AN UNUSUAL NATURE
The results of the operations of the Institute for the financial year were not, in the opinion of the Council, substantially affected by any item, transaction or event of a material and unusual nature.
Report of the Council for the year ended December 31, 2006
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ANNUAL REPORT 2006
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Council, to affect substantially the results of the operations of the Institute for the financial year in which this report is made.
COUNCIL
The Council Members who served since the date of the last report are:-
Dato’ Ab Halim MohyiddinDato’ Nordin Baharuddin Abdul Halim bin Lassim (Appointed on June 24, 2006)Abdul Jabbar Abdul MajidDatuk Dr Abdul Samad Hj AliasDato’ Ahmad Johan bin Mohammad Raslan Ahmad Mustapha Ghazali Beh Tok Koay Chin Kwai Fatt Datin Hjh Fadzilah bte SaadGoh Lee Hwa (Appointed on June 24, 2006)Ho Heng ChuanLim Tian Huat Lim Thiam Kee Loh Lay Choon Dato’ Hj Maidin bin Syed Ali Mohamed Raslan Abdul Rahman Ng Kim Tuck Poon Yew Hoe Pushpanathan A/L S A KanagarayarSee Huey Beng (Appointed on June 24, 2006)Sam Soh Siong HoonSukanta K Dutt Tan Chin Hock Tan Ghee KiatTeh Chee Ghee (Resigned on November 4, 2006) Dr Veerinderjeet Singh Venkatramanan ViswanathanDato’ Yeo How Datuk Robert Yong Kuen Loke
In accordance with bye-law 5, the following Council Members retire at the Annual General Meeting and, being eligible, offer themselves for re-election:
Abdul Jabbar Abdul MajidDato’ Ahmad Johan bin Mohammad RaslanBeh Tok Koay Datin Hjh Fadzilah bte SaadLoh Lay ChoonSukanta K Dutt Tan Ghee KiatVenkatramanan Viswanathan
The following Council Member also retires at the Annual General Meeting pursuant to bye-law 5 but does not wish to seek re-election:
Chin Kwai Fatt
The following nominations have been received for election to the Council in accordance with bye-law 7:
Seow Yoo Lin Lee Tuck Heng
COUNCIL MEMBERS’ BENEFITS
The Institute is a company limited by guarantee and thus has no shares in which the Council Members could have an interest. The Institute has also not issued any debentures.
Since the end of the previous financial year, no Council Member of the Institute has received or become entitled to receive any benefit (other than a benefit in terms of examiner’s fee received by a Council Member as disclosed in the financial statements) by reason of a contract made by the Institute or a related corporation with the Council Member or with a firm of which the Council Member is a member, or with a company in which the Council Member has a substantial financial interest.
Neither during nor at the end of the financial year, was the Institute a party to any arrangements whose object is to enable the Council Members to acquire benefits by means of the acquisition of shares in or debentures of any body corporate.
AUDITORS
Datuk Tan Kim Leong and Siew Kah Toong retire as auditors of the Institute at the Annual General Meeting pursuant to bye-law 120 and in accordance with bye-law 121, they are deemed to be nominated for re-appointment as auditors for the ensuing financial year.
On behalf of the Council,
Dato’ Ab Halim Mohyiddin President
Dato’ Nordin Baharuddin Vice-President
Kuala Lumpur May 4, 2007
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ANNUAL REPORT 2006
Balance Sheet as at December 31, 2006 2006 2005
Note RM RM
Non-Current Assets
Plant and equipment 8 77,465 90,522 Development costs of study manuals 9 182,325 253,814 Advances to MACPA Educational Trust Fund 10 67,626 95,230
Current Assets
Study manuals, at cost 11,687 9,270 Receivables, prepayments and deposits 11 536,499 529,486 Fixed deposits 12 400,000 150,000 Cash and bank balances 24,855 53,615
973,041 742,371
Current Liabilities
Fees in advance 74,458 70,557 Payables and accruals 13 847,301 899,156 Term loan (secured) 14 125,585 110,396 Tax liabilities 2,776 2,707
1,050,120 1,082,816
Net Current Liabilities (77,079) (340,445)
250,337 99,121
Accumulated Fund/(Deficit)
Balance at January 1 (206,638) (109,423) Net operating surplus/(deficit) for the financial year 282,575 (97,215)
Balance at December 31 75,937 (206,638)
Non-Current Liability
Term loan (secured) 14 174,400 305,759
250,337 99,121
The above Balance Sheet is to be read in conjunction with the notes to the financial statements on pages 62 to 73.
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ANNUAL REPORT 2006
Income Statement for the financial year ended December 31, 2006 2006 2005
Note RM RM
Income
Members’ annual fees 1,347,854 1,210,937 Examination fees 190,480 130,620 Practising certificate fees 233,755 212,200 Students’ exemption fees 132,750 102,000 Students’ annual fees 159,225 76,825 Members’ admission fees 49,295 35,070 Students’ registration and transfer fees 62,888 88,585 Provisional members’ fees 24,000 19,150
2,200,247 1,875,387
Income from Other Activities 15 1,264,332 1,369,250
Other Income 16 30,606 29,142
3,495,185 3,273,779
Operating Expenses 17 (2,432,270) (2,471,625)
Expenses of Other Activities 15 (750,539) (863,288)
312,376 (61,134)
Finance Cost 18 (29,487) (35,836)
Operating Surplus/(Deficit) Before Tax 282,889 (96,970)
Tax Expense 19 (314) (245)
Net Operating Surplus/(Deficit) for the Financial Year 282,575 (97,215)
The above Income Statement is to be read in conjunction with the notes to the financial statements on pages 62 to 73.
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ANNUAL REPORT 2006
Statement of Recognised Gains and Losses for the financial year ended December 31, 2006
2006 2005 RM RM
Net operating surplus/(deficit) for the financial year 282,575 (97,215)
The above Statement of Recognised Gains and Losses is to be read in conjunction with the notes to the financial statements on pages 62 to 73.
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ANNUAL REPORT 2006
Cash Flow Statement for the financial year ended December 31, 2006 2006 2005
Note RM RM
Cash Flows from Operating Activities
Cash receipts Subscriptions 2,030,456 1,759,648 Examination fees 209,480 131,495 Journal and publications 215,442 16,754 Seminars 447,430 579,838 Study manuals 85,875 149,822 Examination workshops 356,975 374,542 Others 118,594 156,750
Cash payments Operating expenses (3,048,667) (3,068,963) Tax paid (245) (91) Fees in advance – (16,687) Study manuals (30,378) (22,126)
Net cash generated from operating activities 384,962 60,982
Cash Flows from Investing Activities
Development cost of study manuals (49,000) (6,000) Purchase of plant and equipment 8 (11,922) (36,153) Interest received from fixed deposits 15,253 11,718 Advances to MACPA Educational Trust Fund (68,396) (62,835) Repayment from MACPA Educational Trust Fund 96,000 96,000
Net cash (used in)/generated from investing activities (18,065) 2,730
Cash Flows from Financing Activities
Repayment of term loan (116,170) (109,820) Term loan interest paid (29,487) (35,836)
Net cash used in financing activities (145,657) (145,656)
Net Increase/(Decrease) in Cash and Cash Equivalents 221,240 (81,944)
Cash and Cash Equivalents at Beginning of the Financial Year 203,615 285,559
Cash and Cash Equivalents at End of the Financial Year 20 424,855 203,615
The above Cash Flow Statement is to be read in conjunction with the notes to the financial statements on pages 62 to 73.
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ANNUAL REPORT 2006
Notes to the Financial Statements December 31, 2006
1. GENERAL INFORMATION
The Institute is a company limited by guarantee, incorporated and domiciled in Malaysia.
The registered office and principal place of business of the Institute is located at No. 15, Jalan Medan Tuanku, 50300 Kuala Lumpur.
The number of employees at the end of the financial year is 22 (2005: 21).
The financial statements are presented in Ringgit Malaysia.
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The main risks arising from the Institute’s activities are credit risk, liquidity risk and interest rate risk. The Council reviews and agrees policies for managing each of these risks and they are summarised below:
Credit Risk
Receivables and transactions with banking institutions may give rise to credit risk which requires the loss to be recognised if a counter party fails to perform as contracted. The counter parties are licensed banking institutions and professional organisations. It is the policy of the Institute to monitor the financial standing of these counter parties on an ongoing basis to ensure that the Institute is exposed to minimal credit risk.
Liquidity Risk
The Institute practises prudent liquidity risk management to minimise the mismatch of financial assets and liabilities and to maintain sufficient credit facilities for contingent funding requirements of working capital.
Interest Rate Risk
The Institute ensures that it obtains borrowings and places fixed deposits at competitive rates under the most favourable terms and conditions. Currently, the only borrowing is a term loan that bears interest at 1.5% above the bank’s base lending rate per annum on monthly rests.
The Institute is also exposed to interest rate risk in respect of its fixed deposits with a licensed bank.
3. PRINCIPAL ACTIVITY
The Institute is principally engaged in the advancement of the accountancy profession.
There has been no significant change in the nature of this activity during the financial year.
4. BASIS OF PREPARATION
The financial statements have been prepared under the historical cost convention unless otherwise indicated in the significant accounting policies. The financial statements comply with applicable MASB Financial Reporting Standards and the provisions of the Companies Act, 1965.
The preparation of financial statements in conformity with applicable MASB Financial Reporting Standards and the provisions of the Companies Act, 1965 requires the Council to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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4. BASIS OF PREPARATION (continued)
The accounting policies adopted by the Institute are consistent with those used in the previous financial year except for the adoption of all the new or revised Financial Reporting Standards (“FRS”) and Interpretation of FRSs that are relevant to the Institute’s activities and effective for the financial year beginning January 1, 2006:-
FRS 101 Presentation of Financial Statements FRS 102 Inventories FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors FRS 110 Events After the Balance Sheet Date FRS 116 Property, Plant and Equipment FRS 132 Financial Instruments: Disclosure and Presentation FRS 136 Impairment of Assets
The adoption of the above FRSs does not have any significant impact on the Institute’s financial statements as the existing accounting policies are consistent with the requirements under these standards.
5. SIGNIFICANT ACCOUNTING POLICIES
(a) Income and Expense Recognition
Membership and Students Fees
(i) The subscription year of the Institute is January 1 to December 31. Membership and students’ annual fees are payable annually in advance. Only those membership and students’ annual fees which are attributable to the current financial year are recognised as income. Fees relating to periods beyond the current financial year are shown in the balance sheet as Fees in Advance under the heading Current Liabilities.
(ii) Membership admission and students’ registration fees are recognised upon approval of the respective applications.
(iii) Examination and exemption fees are recognised upon approval of the respective applications.
Interest Income
Interest income is recognised on the effective yield basis.
Other Activities
Other activities include providing continuing professional development courses, conducting examination workshops for students, sale of publications and MICPA study manuals and organising other professional development and students activities.
The policies of the Institute with respect to the recognition of income and expenses on such activities are as follows:-
(i) To the extent that activities are completed on or before the balance sheet date, any surplus or deficit is recognised in the income statement.
(ii) To the extent that activities take place after the end of the financial year, any income received and expense incurred is recognised in the balance sheet.
(iii) Income for sale of publications and MICPA study manuals is recognised when physical control of the materials passes to the purchasers.
(iv) The cost of publications, other than study manuals, is recognised in the income statement in the financial year it is incurred.
Expenses on other activities relate to identifiable direct expenses.
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5. SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Plant and Equipment and Depreciation
Plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any.
Depreciation is calculated on a straight line basis to write off the cost of the plant and equipment over their estimated useful lives. The annual rates of depreciation adopted are as follows:-
Furniture and fittings 10% Security system 10% Office equipment 20% Computers 33%
Plant and equipment which have been fully depreciated are recorded at a nominal value of RM1.00.
The carrying amounts of plant and equipment are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amounts are estimated. The impairment loss is charged to the income statement as soon as foreseeable. Conversely, the impairment loss will be reversed up to the cumulative amount previously charged to the income statement, once the indicator for impairment ceases to exist.
(c) Study Manuals
The costs of development of the MICPA study manuals consisting mainly of writers’ and reviewers’ fees are capitalised and amortised on a straight line basis over the economic life of the study manuals, which is estimated to be 5 years.
Stocks of study manuals are stated at the lower of cost and net realisable value. Cost is determined on a first-in, first-out basis and consists of printing cost. Net realisable value is the estimated selling price in the ordinary course of business less all estimated costs to be incurred prior to sale.
(d) Receivables
Receivables are carried at anticipated realisable value. Bad debts are written off when identified. An estimate is made for doubtful debts based on a review of all outstanding amounts at the balance sheet date.
(e) Payables
Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services received.
(f) Provisions
Provisions are recognised when there is a present obligation, legal or constructive, as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
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5. SIGNIFICANT ACCOUNTING POLICIES (continued)
(g) Employee Benefits
Short-term Employee Benefits
Wages, salaries, social security contributions, paid annual leave, paid sick leave, bonuses and non-monetary benefits are recognised as an expense in the year in which the associated services are rendered by employees of the Institute.
Accumulating compensated absences such as paid annual leave are recognised as an expense when services are rendered by employees that increase their entitlement to future compensated absences. Non-accumulating compensated absences such as sick leave are recognised when the absences occur.
Defined Contribution Plans
The Institute makes contributions to the Employees Provident Fund (“EPF”). The contributions are recognised as an expense in the year to which they relate.
(h) Income Tax
Income tax on the surplus or deficit for the year comprises current and deferred tax.
Current tax expense is the expected amount of income taxes payable in respect of the taxable surplus for the year and is determined using the tax rates that have been enacted at the balance sheet date.
Deferred tax is provided, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable surplus will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, using the tax rates enacted or substantively enacted at the balance sheet date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred tax assets and the deferred tax liabilities relate to the income taxes levied by the same taxation authority.
(i) Foreign Currency Transactions
Transactions in foreign currencies are translated into Ringgit Malaysia at rates of exchange ruling at the date of the transaction and where settlements have not taken place by the financial year end, at the exchange rates ruling at that date. Foreign exchange differences arising from translations are taken to the income statement.
The closing rates used in the translation of foreign currency amounts are as follows:-
2006 2005 RM RM
1 US Dollar (USD) 3.53 3.78 1 Sterling Pound 6.93 6.52 1 Australian Dollar (AUD) 2.79 2.77
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5. SIGNIFICANT ACCOUNTING POLICIES (continued)
(j) Borrowing Cost
Interest relating to a financial instrument, classified as a financial liability, is reported as finance cost in the income statement.
(k) Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand, bank balances and short-term, highly liquid investments that are readily convertible to cash and which are subject to an insignificant risk of changes in value.
(l) Financial Instruments
Term loan is recorded at the amount of proceeds received, net of transaction cost.
The accounting policies for other financial instruments are disclosed in the individual policies associated with each item.
6. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
(a) Critical Judgements Made in Applying Accounting Policies
There are no critical judgements made by management in the process of applying the Institute’s accounting policies that have significant effect on the amounts recognised in these financial statements.
(b) Key Sources of Estimation Uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
(i) Income Taxes and Deferred Tax
Judgement is required to determine the capital allowances and deductibility of certain expenses when estimating the provision for incomes taxes. There were transactions for which the ultimate tax determination is uncertain during the ordinary course of business. The Institute recognises liabilities based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax in the periods in which the outcome is known.
(ii) Depreciation of Plant and Equipment
The cost of plant and equipment is depreciated on a straight line basis over the assets’ useful lives. The Council estimates the useful lives of these plant and equipment to be within 3 years to 10 years. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.
7. EFFECTS OF ADOPTION OF NEW AND REVISED FRSs
There are no significant effects on the adoption of the new and revised FRSs in the financial year 2006.
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8. PLANT AND EQUIPMENT
Office Furniture Security 2006 equipment and fittings system Computers Total RM RM RM RM RM
Cost
As at January 1 323,588 119,192 5,415 184,037 632,232 Additions 1,530 - - 10,392 11,922
As at December 31 325,118 119,192 5,415 194,429 644,154
Accumulated depreciation
As at January 1 294,655 66,827 3,300 176,928 541,710 Charge for the financial year 9,377 7,999 302 7,301 24,979
As at December 31 304,032 74,826 3,602 184,229 566,689
Net book value
As at December 31 21,086 44,366 1,813 10,200 77,465
Office Furniture Security 2005 equipment and fittings system Computers Total RM RM RM RM RM
Cost
As at January 1 297,008 119,097 5,415 174,559 596,079 Additions 26,580 95 – 9,478 36,153
As at December 31 323,588 119,192 5,415 184,037 632,232
Accumulated depreciation
As at January 1 285,283 58,811 2,998 164,881 511,973 Charge for the financial year 9,372 8,016 302 12,047 29,737
As at December 31 294,655 66,827 3,300 176,928 541,710
Net book value
As at December 31 28,933 52,365 2,115 7,109 90,522
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ANNUAL REPORT 2006
9. DEVELOPMENT COSTS OF STUDY MANUALS
2006 2005 RM RM
Development costs 666,024 617,024 Accumulated amortisation (483,699) (363,210)
182,325 253,814
10. ADVANCES TO MACPA EDUCATIONAL TRUST FUND
The amount represents advances made by the Institute which are unsecured and interest-free. There is no intention to demand for full repayment within the next twelve months.
11. RECEIVABLES, PREPAYMENTS AND DEPOSITS
2006 2005 RM RM
Receivable from Budget Commentary 2007/2006 102,569 108,621 Receivable from NACRA competition 9,941 2,944 Subscriptions receivables 309,984 305,468 Other receivables 119,726 103,750 Tax recoverable 2,416 2,416 Other prepayments 3,688 16,687 Deposits 7,350 7,350
555,674 547,236 Allowance for doubtful debts (19,175) (17,750)
536,499 529,486
The credit terms of subscriptions receivables are 30 days.
12. FIXED DEPOSITS
2006 2005 RM RM
Fixed deposits with a licensed bank 400,000 150,000
The weighted average interest rate during the financial year for fixed deposits with a licensed bank is 3.2% (2005: 3%) per annum.
The fixed deposits have an average maturity of 90 days (2005: 90 days).
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13. PAYABLES AND ACCRUALS
2006 2005 RM RM
Advances for study manuals 124,760 198,885 Due to students societies 161,373 143,923 Other payables 215,720 125,583 Accruals 345,448 430,765
847,301 899,156
14. TERM LOAN - SECURED
Repayable as follows:-
2006 2005 RM RM
Current - Within one year 125,585 110,396
Non-current - More than one year but less than five years 174,400 305,759
299,985 416,155
The term loan bears interest at 1.5% above the bank’s base lending rate per annum on monthly rests. The term loan is fully drawndown in December 2004 and is repayable by sixty monthly instalments of RM12,138 each, commencing from January 2005. The weighted average interest rate during the financial year is 8.23% (2005: 7.5%) per annum.
The repayable amount of term loan within one year totalling RM125,585 relates to the principal sum only.
The term loan is secured by:-
(i) Negative pledge over the assets of MICPA.
(ii) Lienholder’s caveat over the property of MACPA Educational Trust Fund situated at No. 15, Jalan Medan Tuanku, 50300 Kuala Lumpur.
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ANNUAL REPORT 2006
15. OTHER ACTIVITIES
Surplus/ Income Expenses (Deficit) 2006 RM RM RM
Examination workshops 380,525 251,169 129,356 Continuing professional development 241,770 152,198 89,572 Annual dinner 63,800 80,707 (16,907) Commemorative lecture and luncheon 17,400 27,581 (10,181) MICPA excellence awards 6,950 23,449 (16,499) Journal and publications 123,159 48,554 74,605 Informal gatherings 4,260 2,880 1,380 MICPA study manuals 172,400 149,090 23,310 Young CPA symposium 15,195 13,119 2,076
1,025,459 748,747 276,712
Joint activities with other bodies: Business forum 102,874 – 102,874 NACRA Competition – 1,792 (1,792) Budget Commentary 2007 100,224 – 100,224 Joint seminars 35,775 – 35,775
238,873 1,792 237,081
1,264,332 750,539 513,793
Surplus/ Income Expenses (Deficit) 2005 RM RM RM
Accountancy week 23,755 35,998 (12,243) Examination workshops 375,167 279,415 95,752 Continuing professional development 333,855 157,730 176,125 Annual dinner 75,790 80,731 (4,941) Commemorative lecture and luncheon 30,120 37,786 (7,666) MICPA excellence awards 10,360 22,288 (11,928) Journal and publications 11,554 4,255 7,299 Informal gatherings 2,350 2,275 75 MICPA study manuals 149,822 155,708 (5,886) Business forum 245,983 85,925 160,058
1,258,756 862,111 396,645
Joint activities with other bodies: NACRA Competition – 1,177 (1,177)
Budget Commentary 2006 102,200 – 102,200 Joint seminars 5,598 – 5,598 Forum on International Education Standards 2,696 – 2,696
110,494 1,177 109,317
1,369,250 863,288 505,962
Expenses on the above activities relate to identifiable direct expenses only and do not include overhead expenses.
The expenses for MICPA study manuals include the amortisation of the development costs for the study manuals amounting to RM120,489 (2005: RM126,907).
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ANNUAL REPORT 2006
16. OTHER INCOME
2006 2005 RM RM
Interest on fixed deposits 14,642 12,329 Fines received from disciplinary proceedings 6,188 12,375 Sale of mailing labels 5,026 1,838 Others 4,750 2,600
30,606 29,142
17. OPERATING EXPENSES
2006 2005 RM RM
Advertisement expenses 40,320 11,325 AGM and Council meeting expenses 3,370 4,966 Allowance for doubtful debts 1,425 – Auditors’ remuneration 6,300 6,300 Bad debts written off 52,967 35,955 Bank charges 15,204 3,611 Brand development programme 21,000 51,500 Depreciation 24,979 29,736 Direct examination expenses 76,256 88,287 Electricity and water 27,646 26,038 General expenses 5,807 7,547 Insurance 6,837 6,402 Journal and technical pronouncements 187,391 135,155 Legal and professional fees 17,762 10,590 Maintenance 21,097 17,079 Medical expenses 5,070 4,302 Office rental 96,000 96,000 Periodicals and library stock 10,694 4,338 Postage and telephone 116,701 111,332 Printing and stationery 71,525 64,877 Professional development expenses 108,544 158,844 Publication of students’ course materials 4,725 9,300 Review of MICPA qualification 5,533 161,701 Staff costs - Employees Provident Fund and SOCSO 205,110 190,006 - Salaries and bonus 1,243,869 1,187,345 Staff recreation fund 5,374 3,000 Subscriptions to international accountancy bodies 26,380 22,452 Travelling expenses 24,384 23,637
2,432,270 2,471,625
The direct examination expenses include an amount of RM3,221 (2005: RM2,147) in respect of examiners fee paid to a Council Member.
18. FINANCE COST
2006 2005 RM RM
Term loan interest 29,487 35,836
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19. TAX EXPENSE
For tax purposes, the Institute is treated as a “Trade Association” under section 53(3) of the Income Tax Act, 1967 under which its income is taxed at scale rates.
2006 2005 RM RM
Current tax expense 314 245
Taxation has been provided for the interest income earned by the Institute.
The numerical reconciliation between the effective tax rate and the applicable tax rate of the Institute is as follows:
2006 2005 % %
Applicable tax rate 28.00 (28.00)
Tax effect in respect of: Non taxable income (0.39) –
Utilisation of unabsorbed capital allowances and tax losses (35.35) (4.16) Non allowable expenses 9.17 35.71 Reduction in statutory tax rate (1.32) (3.30)
Effective tax rate 0.11 0.25
Deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:-
2006 2005 RM RM
Unused tax losses 159,777 263,330
The unused tax losses is available indefinitely for offset against future taxable surplus of the Institute subject to agreement of the Inland Revenue Board. Deferred tax assets have not been recognised in respect of these items as it is not probable that future taxable surplus will be available against which the deductible temporary differences can be utilised.
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20. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash in hand and balances with banks and fixed deposits. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts:-
2006 2005 RM RM
Fixed deposits 400,000 150,000 Cash and bank balances 24,855 53,615
424,855 203,615
21. FINANCIAL INSTRUMENTS
Credit Risk
As at December 31, 2006, the Institute has subscriptions receivable of RM309,984 which have been outstanding for more than 30 days and bank balances and fixed deposits of RM423,855 with some major licensed banking institutions in Malaysia. Other than as mentioned, the Institute has no significant concentration of credit risk. The maximum exposures to credit risk are represented by the carrying amounts of the financial assets in the balance sheet.
Fair Values
The carrying amounts of the financial instruments of the Institute as at December 31, 2006 approximate their fair values.
22. AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS
These financial statements were authorised for issue by the Council on May 4, 2007.
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Statement by Council MembersIn the opinion of the Council Members, the financial statements set out on pages 58 to 73 have been drawn up in accordance with applicable MASB Financial Reporting Standards and the provisions of the Companies Act, 1965 so as to give a true and fair view of the state of affairs of the Institute as at December 31, 2006 and of its results and cash flows for the financial year ended on that date.
On behalf of the Council Members,
Dato’ Ab Halim Mohyiddin President
Dato’ Nordin Baharuddin Vice-President
Kuala Lumpur May 4, 2007
Statutory DeclarationI, Tan Shook Kheng, being the officer primarily responsible for the financial management of The Malaysian Institute of Certified Public Accountants, do solemnly and sincerely declare that the financial statements set out on pages 58 to 73 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed ) Tan Shook Kheng ) at Kuala Lumpur this ) 4th day of May 2007 )
Before me:-
Wong Ah Ying Commissioner for Oaths Kuala Lumpur
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Report of the Auditors to the Members of The Malaysian Institute of Certified Public Accountants (3246-U) (Institut Akauntan Awam Bertauliah Malaysia)
We have audited the financial statements set out on pages 58 to 73.
These financial statements are the responsibility of the Council.
It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report our opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do not assume responsibility towards any other person for the content of this report.
We conducted our audit in accordance with applicable approved standards on auditing in Malaysia. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Council, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion:-
(a) the financial statements have been properly drawn up in accordance with applicable MASB Financial Reporting Standards and the Companies Act, 1965 so as to give a true and fair view of:-
(i) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements of the Institute; and
(ii) the state of affairs of the Institute as at December 31, 2006 and of its results and cash flows for the financial year then ended; and
(b) the accounting and other records and the registers required by the Act to be kept by the Institute have been properly kept in accordance with the provisions of the said Act.
Datuk Tan Kim Leong 235/06/07 (J/PH) Chartered Accountant
Siew Kah Toong 1045/03/08 (J) Chartered Accountant
Kuala Lumpur May 4, 2007
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Penyata Kewangan 2006
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Majlis dengan sukacitanya membentangkan laporan dan penyata kewangan teraudit Institut bagi tahun kewangan berakhir 31 Disember 2006.
KEGIATAN UTAMA
Kegiatan utama Institut ialah memajukan profesion perakaunan. Dalam tahun kewangan, tidak berlaku sebarang perubahan yang ketara dalam kegiatan ini.
KEPUTUSAN KEWANGAN
RM Lebihan kendalian bersih bagi tahun kewangan 282,575
DIVIDEN
Menurut Memorandum Pertubuhan, tiada dividen akan dibayar kepada ahli-ahli Institut.
REZAB DAN PERUNTUKAN
Sepanjang tahun ini, tiada sebarang pindahan penting kepada atau daripada peruntukan. Institut tidak mempunyai sebarang akaun rezab.
HUTANG LAPUK DAN HUTANG RAGU
Sebelum penyata pendapatan dan kunci kira-kira Institut disediakan, Majlis telah mengambil langkah yang wajar untuk menentukan bahawa tindakan sepatutnya berhubung dengan penghapuskiraan hutang lapuk telah diambil dan elaun hutang ragu dibuat dan mereka berpuashati bahawa kesemua hutang lapuk yang diketahui telah dihapuskira dan elaun yang mencukupi telah diberikan untuk hutang ragu.
Pada tarikh laporan ini, Majlis tidak mengetahui adanya sebarang keadaan yang boleh menyebabkan jumlah hutang lapuk yang dihapuskirakan atau jumlah elaun hutang ragu yang diperuntukkan dalam penyata kewangan Institut tidak mencukupi secara bermakna.
ASET SEMASA
Sebelum penyata pendapatan dan kunci kira-kira Institut disediakan, Majlis telah mengambil langkah yang munasabah untuk menentukan bahawa aset semasa yang mungkin tidak dapat menghasilkan nilainya dalam perjalanan aktiviti biasa, sepertimana
dinyata dalam rekod perakaunan Institut telahpun dikurangkan nilainya kepada amaun yang dijangka dapat dihasilkan.
Pada tarikh laporan ini, Majlis tidak mengetahui adanya sebarang keadaan yang boleh menyebabkan nilai bagi aset semasa dalam penyata kewangan Institut mengelirukan.
KAEDAH PENILAIAN
Pada tarikh laporan ini, Majlis tidak mengetahui adanya sebarang keadaan yang timbul yang boleh mengakibatkan pematuhan kepada kaedah yang sedia ada bagi penilaian aset atau liabiliti dalam penyata kewangan Institut mengelirukan atau tidak sesuai.
LIABILITI LUAR JANGKA DAN LIABILITI LAIN
Pada tarikh laporan ini, tidak terdapat :-
(i) sebarang gadaian ke atas aset Institut yang telah diwujudkan semenjak akhir tahun kewangan yang mencagarkan liabiliti mana-mana perseorangan lain; atau
(ii) sebarang liabiliti luar jangka berhubung dengan Institut yang timbul semenjak akhir tahun kewangan.
Tidak ada liabiliti luar jangka atau liabiliti lain Institut yang akan berkuatkuasa atau mungkin dikuatkuasakan dalam tempoh dua belas bulan berikutan akhir tahun kewangan ini yang, pada pendapat Majlis, akan atau mungkin memberi kesan yang bermakna terhadap keupayaan Institut untuk menyelesaikan tanggungan-tanggungannya apabila tiba masanya.
PERUBAHAN KEADAAN
Pada tarikh laporan ini, Majlis tidak mengetahui adanya sebarang keadaan yang tidak ditangani dalam laporan ini atau dalam penyata kewangan Institut, yang akan menyebabkan mana-mana amaun yang dinyatakan dalam penyata kewangan mengelirukan.
BUTIRAN LUARBIASA
Pada pendapat Majlis, hasil kendalian Institut bagi tahun kewangan tidak dipengaruhi secara bermakna oleh sebarang butiran, urus niaga atau kejadian penting dan luarbiasa.
Laporan Majlis bagi tahun berakhir 31 Disember 2006
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Dalam jangka masa di antara akhir tahun kewangan dan tarikh laporan ini, tiada timbul sebarang butiran, urusniaga atau kejadian penting dan luarbiasa yang, pada pendapat Majlis, akan memberi kesan bermakna ke atas hasil kendalian Institut bagi tahun kewangan dalam mana laporan ini dibuat.
MAJLIS
Ahli-ahli Majlis yang berkhidmat sejak tarikh laporan terakhir ialah:-
Dato’ Ab Halim MohyiddinDato’ Nordin Baharuddin Abdul Halim bin Lassim (Dilantik pada 24 Jun 2006)Abdul Jabbar Abdul MajidDatuk Dr Abdul Samad Hj AliasDato’ Ahmad Johan bin Mohammad Raslan Ahmad Mustapha Ghazali Beh Tok Koay Chin Kwai Fatt Datin Hjh Fadzilah bte SaadGoh Lee Hwa (Dilantik pada 24 Jun 2006)Ho Heng ChuanLim Tian Huat Lim Thiam Kee Loh Lay Choon Dato’ Hj Maidin bin Syed Ali Mohamed Raslan Abdul Rahman Ng Kim Tuck Poon Yew Hoe Pushpanathan A/L S A KanagarayarSee Huey Beng (Dilantik pada 24 Jun 2006)Sam Soh Siong HoonSukanta K Dutt Tan Chin Hock Tan Ghee KiatTeh Chee Ghee (Meletak jawatan pada 4 November 2006) Dr Veerinderjeet Singh Venkatramanan ViswanathanDato’ Yeo How Datuk Robert Yong Kuen Loke
Menurut undang-undang kecil 5, ahli-ahli Majlis berikut bersara pada Mesyuarat Agung Tahunan dan layak menawarkan diri mereka untuk dipilih semula:
Abdul Jabbar Abdul MajidDato’ Ahmad Johan bin Mohammad RaslanBeh Tok Koay Datin Hjh Fadzilah bte SaadLoh Lay ChoonSukanta K Dutt Tan Ghee KiatVenkatramanan Viswanathan
Ahli-ahli Majlis berikut juga bersara pada Mesyuarat Agung Tahunan menurut undang-undang kecil 5 tetapi tidak ingin dipilih semula:
Chin Kwai Fatt
Berikut adalah pencalonan yang telah diterima untuk dipilih ke Majlis mengikut undang-undang kecil 7:
Seow Yoo Lin Lee Tuck Heng
MANFAAT AHLI-AHLI MAJLIS
Institut ini adalah sebuah syarikat berhad dengan jaminan dan oleh itu tidak mempunyai syer dalam mana ahli-ahli Majlis boleh mempunyai kepentingan. Institut juga tidak mengeluarkan sebarang debentur.
Sejak akhir tahun kewangan yang lepas, tiada seorang ahli Majlis Institut telah menerima atau berhak menerima sebarang manfaat (selain daripada manfaat dalam bentuk bayaran perkhidmatan pemeriksa yang diterima oleh seorang ahli Majlis seperti yang dinyatakan dalam penyata kewangan) akibat dari perjanjian yang dibuat oleh Institut atau syarikat berkaitan dengan ahli Majlis atau dengan firma di mana ahli Majlis adalah seorang ahli, atau dengan syarikat di mana ahli Majlis mempunyai kepentingan kewangan yang ketara.
Institut sama ada dalam tahun atau pada akhir tahun tidak mengambil bahagian dalam sebarang peraturan yang bertujuan untuk membolehkan ahli-ahli Majlis mendapat faedah melalui perolehan syer atau debentur dalam sebarang badan korporat.
JURUAUDIT
Datuk Tan Kim Leong dan Siew Kah Toong akan bersara sebagai juruaudit Institut pada Mesyuarat Agung Tahunan menurut undang-undang kecil 120 dan mengikut undang-undang kecil 121, mereka dengan ini dicalonkan untuk perlantikan semula sebagai juruaudit untuk tahun yang berikutnya.
Bagi pihak Majlis,
Dato’ Ab Halim Mohyiddin Presiden
Dato’ Nordin Baharuddin Naib Presiden
Kuala Lumpur 4 Mei 2007
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Kunci Kira-kira pada 31 Disember 2006 2006 2005
Nota RM RM
Aset Bukan Semasa
Loji dan peralatan 8 77,465 90,522 Kos pembangunan buku panduan belajar 9 182,325 253,814 Pendahuluan kepada Tabung Amanah Pendidikan MACPA 10 67,626 95,230
Aset Semasa
Buku panduan belajar, pada kos 11,687 9,270 Penghutang, prabayaran dan deposit 11 536,499 529,486 Simpanan tetap 12 400,000 150,000 Wang tunai dan baki di bank 24,855 53,615
973,041 742,371
Liabiliti Semasa
Yuran pendahuluan 74,458 70,557 Pemiutang dan akruan 13 847,301 899,156 Pinjaman berjangka (dijamin) 14 125,585 110,396 Cukai tanggungan 2,776 2,707
1,050,120 1,082,816
Liabiliti Semasa Bersih (77,079) (340,445)
250,337 99,121
Dana/(Defisit) Terkumpul
Baki pada 1 Januari (206,638) (109,423) Lebihan/(defisit) kendalian bersih bagi tahun kewangan 282,575 (97,215)
Baki pada 31 Disember 75,937 (206,638)
Liabiliti Bukan Semasa
Pinjaman berjangka (dijamin) 14 174,400 305,759
250,337 99,121
Kunci Kira-kira di atas hendaklah dibaca bersama dengan nota kepada penyata kewangan di mukasurat 85 hingga 96.
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Penyata Pendapatan bagi tahun kewangan berakhir 31 Disember 2006 2006 2005
Nota RM RM
Pendapatan
Yuran tahunan ahli 1,347,854 1,210,937 Yuran peperiksaan 190,480 130,620 Yuran sijil pengamalan 233,755 212,200 Yuran pengecualian pelajar 132,750 102,000 Yuran tahunan pelajar 159,225 76,825 Yuran kemasukan ahli 49,295 35,070 Yuran pendaftaran dan pemindahan pelajar 62,888 88,585 Yuran ahli sementara 24,000 19,150
2,200,247 1,875,387
Pendapatan daripada Aktiviti Lain 15 1,264,332 1,369,250
Pendapatan Lain 16 30,606 29,142
3,495,185 3,273,779
Belanja Kendalian 17 (2,432,270) (2,471,625)
Belanja Aktiviti Lain 15 (750,539) (863,288)
312,376 (61,134)
Kos Kewangan 18 (29,487) (35,836)
Lebihan/(Defisit) Kendalian Sebelum Cukai 282,889 (96,970)
Belanja Cukai 19 (314) (245)
Lebihan/(Defisit) Kendalian Bersih bagi Tahun Kewangan 282,575 (97,215)
Penyata Pendapatan di atas hendaklah dibaca bersama dengan nota kepada penyata kewangan di mukasurat 85 hingga 96.
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Penyata Keuntungan dan Kerugian yang Diiktiraf bagi tahun kewangan berakhir 31 Disember 2006 2006 2005
RM RM
Lebihan/(Defisit) kendalian bersih bagi tahun kewangan 282,575 (97,215)
Penyata Keuntungan dan Kerugian yang Diiktiraf di atas hendaklah dibaca bersama dengan nota kepada penyata kewangan di mukasurat 85 hingga 96.
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Penyata Aliran Tunai bagi tahun kewangan berakhir 31 Disember 2006 2006 2005
Nota RM RM
Aliran Tunai daripada Aktiviti Kendalian
Penerimaan tunai Yuran 2,030,456 1,759,648 Yuran peperiksaan 209,480 131,495 Jurnal dan penerbitan 215,442 16,754 Seminar 447,430 579,838 Buku panduan belajar 85,875 149,822 Bengkel peperiksaan 356,975 374,542 Lain-lain 118,594 156,750
Bayaran Tunai Belanja kendalian (3,048,667) (3,068,963) Cukai dibayar (245) (91) Yuran pendahuluan – (16,687) Buku panduan belajar (30,378) (22,126)
Tunai bersih terjana daripada aktiviti kendalian 384,962 60,982
Aliran Tunai daripada Aktiviti Pelaburan
Kos pembangunan buku panduan belajar (49,000) (6,000) Pembelian loji dan peralatan 8 (11,922) (36,153) Faedah diterima daripada simpanan tetap 15,253 11,718 Pendahuluan kepada Tabung Amanah Pendidikan MACPA (68,396) (62,835) Pembayaran balik daripada Tabung Amanah Pendidikan MACPA 96,000 96,000
Tunai bersih (diguna dalam)/terjana daripada aktiviti pelaburan (18,065) 2,730
Aliran Tunai daripada Aktiviti Pembiayaan
Pembayaran balik pinjaman berjangka (116,170) (109,820) Bayaran faedah untuk pinjaman berjangka (29,487) (35,836)
Tunai bersih diguna dalam aktiviti pembiayaan (145,657) (145,656)
Lebihan/(Kurangan) Bersih dalam Tunai dan Kesetaraan Tunai 221,240 (81,944)
Tunai dan Kesetaraan Tunai pada Awal Tahun Kewangan 203,615 285,559
Tunai dan Kesetaraan Tunai pada Akhir Tahun Kewangan 20 424,855 203,615
Penyata Aliran Tunai di atas hendaklah dibaca bersama dengan nota kepada penyata kewangan di mukasurat 85 hingga 96.
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Nota Kepada Penyata Kewangan 31 Disember 2006
1. MAKLUMAT AM
Institut ini adalah sebuah syarikat berhad dengan jaminan, diperbadankan dan berdomisil di Malaysia.
Pejabat berdaftar dan tempat utama perniagaan Institut terletak di No. 15, Jalan Medan Tuanku, 50300 Kuala Lumpur.
Jumlah pekerja pada akhir tahun kewangan adalah 22 (2005: 21).
Penyata kewangan telah dibentangkan dalam Ringgit Malaysia.
2. OBJEKTIF DAN POLISI PENGURUSAN RISIKO KEWANGAN
Risiko utama yang timbul dari aktiviti Institut ialah risiko kredit, risiko mudah tunai dan risiko kadar faedah. Majlis menyemak semula dan mempersetujukan polisi untuk pengurusan setiap risiko tersebut dan diringkaskan seperti berikut:
Risiko Kredit
Penghutang dan urus niaga dengan institusi perbankan mungkin menimbulkan risiko kredit yang memerlukan kerugian diiktirafkan sekiranya pihak peniaga balas gagal melaksanakan urusan mengikut kontrak. Pihak peniaga balas adalah institusi perbankan berlesen dan organisasi profesional. Adalah menjadi dasar Institut untuk memantau kedudukan kewangan pihak peniaga balas secara berterusan untuk memastikan bahawa pendedahan Institut terhadap risiko kredit adalah minimum.
Risiko Mudah Tunai
Institut mengamalkan pengurusan risiko mudah tunai yang hemat untuk meminimumkan ketidakpadanan antara aset dan liabiliti kewangan dan mengekalkan kemudahan kredit yang mencukupi untuk keperluan pembiayaan kontingen modal kerja.
Risiko Kadar Faedah
Institut memastikan bahawa ia mendapatkan pinjaman dan meletakkan simpanan tetap pada kadar faedah yang kompetitif di bawah syarat-syarat yang menguntungkan. Pada masa kini, pinjaman yang dipunyainya adalah pinjaman berjangka yang dikenakan faedah pada 1.5% lebih daripada kadar pinjaman asas (BLR) bank setahun, dikira setiap bulan.
Institut juga terdedah kepada risiko kadar faedah yang berkaitan dengan pelaburan simpanan tetapnya dengan sebuah syarikat kewangan yang berlesen.
3. KEGIATAN UTAMA
Kegiatan utama Institut ialah memajukan profesion perakaunan.
Dalam tahun kewangan, tidak berlaku perubahan yang ketara dalam kegiatan ini.
4. ASAS PENYEDIAAN
Penyata kewangan telah disediakan berasaskan konvesyen kos sejarah kecuali sepertimana yang dinyatakan sebaliknya dalam polisi perakaunan penting. Penyata kewangan mematuhi Piawaian Pelaporan Kewangan MASB kena dipakai dan peruntukan Akta Syarikat, 1965.
Penyediaan penyata kewangan menurut Piawaian Pelaporan Kewangan MASB kena dipakai dan peruntukan Akta Syarikat, 1965 memerlukan Majlis membuat anggaran dan andaian yang memberi kesan ke atas jumlah aset dan liabiliti dilaporkan dan pemberitahuan aset dan liabiliti luar jangka pada tarikh penyata kewangan dan jumlah pendapatan dan belanja dilaporkan dalam tempoh pelaporan. Keputusan sebenar boleh berlainan daripada anggaran tersebut.
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4. ASAS PENYEDIAAN (sambungan)
Polisi perakaunan terpakai oleh Institut adalah selaras dengan polisi yang digunakan pada tahun kewangan sebelumnya kecuali pemakaian kesemua Piawaian Pelaporan Kewangan (FRS) baru atau disemak semula dan Intepretasi FRS yang relevan bagi aktiviti Institut dan berkuatkuasa bagi tahun kewangan bermula 1 Januari 2006:
FRS 101 Pembentangan Penyata Kewangan FRS 102 Inventori FRS 108 Polisi Perakaunan, Perubahan Anggaran Perakaunan dan Ralat FRS 110 Perkara-perkara Selepas Tarikh Lembaran Imbangan FRS 116 Harta, Loji dan Peralatan FRS 132 Instrumen Kewangan: Pemberitahuan dan Pembentangan FRS 136 Kemerosotan Nilai Aset
Pemakaian FRS di atas tidak mempunyai sebarang kesan ketara ke atas penyata kewangan Institut kerana polisi perakaunan yang sedia ada selaras dengan keperluan piawaian-piawaian tersebut.
5. POLISI-POLISI PERAKAUNAN PENTING
(a) Pengiktirafan Pendapatan dan Belanja
Yuran ahli dan pelajar
(i) Tahun yuran Institut ialah 1 Januari hingga 31 Disember. Yuran tahunan ahli dan pelajar kena dibayar terdahulu setiap tahun. Hanya yuran tahunan ahli dan pelajar yang berpunca dari tahun kewangan semasa diiktiraf sebagai pendapatan. Yuran berhubung dengan tempoh selepas tahun kewangan semasa ditunjukkan dalam kunci kira-kira sebagai Yuran Pendahuluan di bawah tajuk Liabiliti Semasa.
(ii) Yuran kemasukan ahli dan yuran pendaftaran pelajar diiktiraf apabila permohonan masing-masing diluluskan.
(iii) Yuran peperiksaan dan pengecualian diiktiraf apabila permohonan masing-masing diluluskan.
Pendapatan faedah
Pendapatan faedah diiktiraf berasaskan kadar hasil yang efektif.
Aktiviti lain
Aktiviti lain termasuk penyediaan kursus pembangunan profesional berterusan, mengendalikan bengkel peperiksaan untuk pelajar, jualan penerbitan dan buku panduan belajar MICPA dan pengelolaan aktiviti pembangunan profesional dan aktiviti pelajar lain.
Polisi Institut mengenai pengiktirafan pendapatan dan belanja bagi aktiviti sebegini adalah seperti berikut:-
(i) Setakat aktiviti disempurnakan pada atau sebelum tarikh kunci kira-kira, sebarang lebihan atau defisit diiktiraf dalam penyata pendapatan.
(ii) Setakat aktiviti dilaksanakan selepas akhir tahun kewangan, sebarang pendapatan diterima dan belanja dilakukan diiktiraf dalam kunci kira-kira.
(iii) Pendapatan daripada jualan penerbitan dan buku panduan belajar MICPA diiktiraf apabila kawalan fizikal barangan dipindah kepada pembeli.
(iv) Kos penerbitan, selain daripada buku panduan belajar, diiktiraf dalam penyata pendapatan dalam tahun kewangan ia berlaku.
Belanja aktiviti lain berhubung dengan belanja langsung yang boleh dikenalpasti.
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5. POLISI-POLISI PERAKAUNAN PENTING (sambungan)
(b) Loji dan Peralatan dan Susut Nilai
Loji dan peralatan dicatat pada kos, tolak susut nilai terkumpul dan kerugian kemerosotan nilai terkumpul, jika ada.
Susut nilai dikira supaya menghapuskira kos loji dan peralatan mengikut asas garis lurus ke atas hayat bergunanya yang dijangkakan. Kadar susut nilai tahunan yang dipakai adalah seperti berikut :-
Perabot dan lengkapan 10% Sistem kawalan 10% Peralatan pejabat 20% Komputer 33%
Loji dan peralatan yang telah disusut nilai sepenuhnya dicatat pada nilai nominal RM1.00.
Nilai buku loji dan peralatan disemak semula pada setiap tarikh kunci kira-kira untuk menentukan sama ada berwujud tanda-tanda kemerosotan nilai. Sekiranya tanda-tanda tersebut wujud, jumlah yang boleh didapati kembali dianggarkan. Kerugian kemerosotan nilai diiktiraf dalam penyata pendapatan sebaik sahaja didapati akan berlaku pada masa hadapan berjangka. Sebaliknya, kerugian kemerosotan nilai diambilkira balik hingga jumlah terkumpul yang diiktiraf dalam penyata pendapatan sebelum ini, pada ketika tanda kemerosotan nilai tidak wujud lagi.
(c) Buku Panduan Belajar
Kos pembangunan buku panduan belajar MICPA yang sebahagian besarnya terdiri daripada bayaran kepada penulis dan penyemak semula dipermodalkan dan dilunaskan mengikut asas garis lurus ke atas hayat ekonomi buku panduan belajar yang dianggarkan sepanjang 5 tahun.
Stok buku panduan belajar dicatat pada nilai terendah antara kos sejarah dan nilai boleh direalis bersih. Kos ditetapkan mengikut asas masuk-dulu, keluar-dulu dan terdiri daripada kos percetakan. Nilai boleh direalis bersih merupakan harga jualan dianggarkan dalam keadaan biasa perniagaan tolak kesemua kos dianggarkan akan dibelanja sebelum jualan.
(d) Penghutang
Penghutang dinyatakan pada nilai jangkaan yang boleh direalis. Hutang lapuk dihapuskira apabila dikenal pasti. Anggaran dibuat untuk hutang ragu yang berasaskan semak semula semua amaun yang belum bayar pada tarikh kunci kira-kira.
(e) Pemiutang
Pemiutang dinyatakan pada kos iaitu nilai saksama balasan yang akan dibayar pada masa hadapan bagi barang-barang dan perkhidmatan yang diterima.
(f) Peruntukan
Peruntukan diiktiraf apabila terdapat obligasi semasa, sama ada sah di sisi undang-undang atau konstruktif, yang diakibatkan oleh peristiwa lepas, apabila terdapatnya kemungkinan bahawa aliran keluar sumber melibatkan manfaat ekonomi akan diperlukan untuk menyelesaikan obligasi tersebut dan anggaran yang boleh dipercayai dapat dibuat bagi amaun obligasi.
(g) Manfaat Kakitangan
Manfaat Kakitangan Jangka Pendek
Upah, gaji, caruman keselamatan sosial, cuti tahunan berbayar, cuti sakit berbayar, bonus dan faedah bukan kewangan diiktiraf sebagai belanja pada tahun yang mana perkhidmatan berkaitan diberikan oleh kakitangan Institut.
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5. POLISI-POLISI PERAKAUNAN PENTING (sambungan)
(g) Manfaat Kakitangan (sambungan)
Ketidakhadiran terimbuh terkumpul seperti cuti tahunan berbayar adalah diiktiraf sebagai belanja apabila perkhidmatan diberikan oleh kakitangan meningkatkan hak mereka bagi ketidakhadiran terimbuh masa depan. Ketidakhadiran terimbuh tak terkumpul seperti cuti sakit adalah diiktiraf apabila berlakunya ketidakhadiran itu.
Rancangan Caruman Tetap
Institut membuat caruman kepada Kumpulan Wang Simpanan Pekerja (“KWSP”). Caruman diiktiraf sebagai belanja dalam tahun ianya berlaku.
(h) Cukai Pendapatan
Cukai pendapatan ke atas lebihan atau defisit bagi tahun kewangan terdiri daripada cukai semasa dan cukai tertunda.
Belanja cukai semasa merupakan amaun cukai pendapatan yang dijangkakan perlu dibayar ke atas lebihan bercukai bagi tahun dan ditentukan mengikut kadar cukai yang dikuatkuasakan pada tarikh kunci kira-kira.
Cukai tertunda adalah diperuntukkan, mengikut kaedah liabiliti, ke atas perbezaan sementara pada tarikh kunci kira-kira antara asas cukai aset dan liabiliti dan nilai bukunya dalam penyata kewangan. Pada prinsipnya, liabiliti cukai tertunda diiktiraf bagi semua perbezaan sementara yang boleh dikenakan cukai dan aset cukai tertunda diiktiraf bagi semua perbezaan sementara yang boleh diberikan potongan, kerugian cukai belum diserap dan kredit cukai belum guna setakat terdapat kemungkinan keuntungan bercukai akan berlaku terhadapnya perbezaaan sementara yang boleh diberikan potongan, kerugian cukai belum diserap dan kredit cukai belum guna boleh dipakai.
Cukai tertunda ditetapkan pada kadar cukai yang dijangka terpakai dalam tempoh aset direalis atau liabiliti diselesaikan dengan menggunakan kadar cukai yang dikuatkuasakan atau hampir dikuatkuasakan pada tarikh kunci kira-kira.
Aset dan liabiliti cukai tertunda diimbang balas sekiranya terdapat hak yang sah untuk mengimbang balas aset cukai semasa dengan liabiliti cukai semasa dan juga aset cukai tertunda dan liabiliti cukai tertunda adalah berkaitan dengan cukai pendapatan yang dikenakan oleh pihak berkuasa cukai yang sama.
(i) Urus Niaga Matawang Asing
Urus niaga dalam matawang asing diterjemahkan kepada Ringgit Malaysia pada kadar pertukaran yang terpakai pada tarikh urus niaga berlaku dan di mana penyelesaian belum berlaku pada akhir tahun kewangan, pada kadar pertukaran yang terpakai pada tarikh tersebut. Perbezaan pertukaran asing yang wujud dari penterjemahan dibawa ke penyata pendapatan.
Kadar penutup yang digunakan untuk terjemahan amaun dalam matawang asing adalah seperti berikut:-
2006 2005 RM RM
1 US Dollar (USD) 3.53 3.78 1 Sterling Pound 6.93 6.52
1 Australian Dollar (AUD) 2.79 2.77
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5. POLISI-POLISI PERAKAUNAN PENTING (sambungan)
(j) Kos Peminjaman
Faedah berkaitan dengan instrumen kewangan, diklasifikasi sebagai liabiliti kewangan, dilaporkan sebagai kos kewangan di dalam penyata pendapatan.
(k) Tunai dan Kesetaraan Tunai
Tunai dan kesetaraan tunai terdiri daripada tunai dalam tangan, baki bank dan pelaburan jangka pendek yang amat mudah cair yang boleh ditukar dengan mudah kepada tunai dan tertakluk kepada risiko perubahan nilai yang tidak ketara.
(l) Instrumen Kewangan
Pinjaman berjangka dicatat pada amaun yang diterima selepas menolak kos urus niaga.
Polisi perakaunan untuk instrumen kewangan lain adalah dinyatakan dalam polisi individu yang berkaitan dengan tiap-tiap instrumen.
6. PENENTUAN DAN ANGGARAN PERAKAUNAN PENTING
(a) Penentuan Kritis Dibuat dalam Pemakaian Polisi Perakaunan
Tiada penentuan kritis dibuat oleh pihak pengurusan dalam proses pemakaian polisi perakaunan yang memberi kesan ketara ke atas jumlah diiktiraf dalam penyata kewangan.
(b) Punca Utama Ketidakpastian Anggaran
Andaian utama berkenaan masa hadapan dan punca utama ketidakpastian anggaran lain pada tarikh kunci kira-kira, yang mempunyai risiko ketara menyebabkan pelarasan penting kepada nilai buku asset dan liabiliti pada tahun kewangan berikutnya, adalah dibincang seperti berikut.
(i) Cukai Pendapatan dan Cukai Tertunda
Penentuan diperlukan untuk menetapkan elaun modal dan potongan belanja tertentu apabila menganggarkan peruntukan cukai pendapatan. Terdapat urusniaga di mana penetapan cukai muktamad adalah tidak pasti dalam keadaan biasa perniagaan. Institut mengiktiraf liabiliti berasaskan anggaran sama ada cukai tambahan kena dibayar. Sekiranya keputusan cukai muktamad berkenaan perkara tersebut berbeza daripada jumlah yang dicatatkan pada mulanya, perbezaan tersebut akan memberi kesan ke atas cukai pendapatan dan cukai tertunda dalam tempoh di mana keputusan diketahui.
(ii) Susut Nilai Loji dan Peralatan
Kos loji dan peralatan disusut nilai berasaskan garis lurus ke atas hayat berguna aset. Majlis menganggarkan hayat berguna loji dan peralatan adalah di antara 3 tahun dan 10 tahun. Perubahan dalam tahap penggunaan dijangka dan pembangunan teknologi boleh memberikan kesan ke atas hayat berguna ekonomi dan nilai sisa aset tersebut. Oleh yang demikian, susut nilai untuk masa hadapan boleh disemak semula.
7. KESAN-KESAN PEMAKAIAN FRS BARU DAN DISEMAK SEMULA
Tidak terdapat kesan ketara daripada pemakaian FRS baru dan disemak semula dalam tahun kewangan 2006.
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8. LOJI DAN PERALATAN
Peralatan Perabot dan Sistem 2006 pejabat lengkapan kawalan Komputer Jumlah RM RM RM RM RM
Kos
Pada 1 Januari 323,588 119,192 5,415 184,037 632,232 Tambahan 1,530 - - 10,392 11,922
Pada 31 Disember 325,118 119,192 5,415 194,429 644,154
Susut nilai terkumpul
Pada 1 Januari 294,655 66,827 3,300 176,928 541,710 Susut nilai bagi tahun kewangan 9,377 7,999 302 7,301 24,979
Pada 31 Disember 304,032 74,826 3,602 184,229 566,689
Nilai buku bersih
Pada 31 Disember 21,086 44,366 1,813 10,200 77,465
Peralatan Perabot dan Sistem 2005 pejabat lengkapan kawalan Komputer Jumlah RM RM RM RM RM
Kos
Pada 1 Januari 297,008 119,097 5,415 174,559 596,079 Tambahan 26,580 95 – 9,478 36,153
Pada 31 Disember 323,588 119,192 5,415 184,037 632,232
Susut nilai terkumpul
Pada 1 Januari 285,283 58,811 2,998 164,881 511,973 Susut nilai bagi tahun kewangan 9,372 8,016 302 12,047 29,737
Pada 31 Disember 294,655 66,827 3,300 176,928 541,710
Nilai buku bersih
Pada 31 Disember 28,933 52,365 2,115 7,109 90,522
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9. KOS PEMBANGUNAN BUKU PANDUAN BELAJAR
2006 2005 RM RM
Kos pembangunan 666,024 617,024 Pelunasan terkumpul (483,699) (363,210)
182,325 253,814
10. PENDAHULUAN KEPADA TABUNG AMANAH PENDIDIKAN MACPA
Amaun ini merupakan pendahuluan yang dibuat oleh Institut yang tidak bercagar dan tanpa faedah. Institut tidak berniat untuk menuntut pembayaran balik sepenuhnya dalam tempoh dua belas bulan berikutnya.
11. PENGHUTANG, PRABAYARAN DAN DEPOSIT
2006 2005 RM RM
Hutang dari Ulasan Belanjawan 2007/2006 102,569 108,621 Hutang dari pertandingan NACRA 9,941 2,944 Yuran belum diterima 309,984 305,468 Pelbagai penghutang 119,726 103,750 Cukai yang dapat diperolehi semula 2,416 2,416 Prabayaran lain 3,688 16,687 Deposit 7,350 7,350
555,674 547,236 Elaun untuk hutang ragu (19,175) (17,750)
536,499 529,486
Tempoh kredit bagi yuran belum diterima adalah 30 hari.
12. SIMPANAN TETAP
2006 2005 RM RM
Simpanan tetap dengan sebuah bank berlesen 400,000 150,000
Kadar faedah purata berwajaran pada tahun kewangan untuk simpanan tetap dengan sebuah bank berlesen adalah 3.2% (2005: 3%) setahun.
Simpanan tetap tersebut mempunyai jangka matang purata selama 90 hari (2005: 90 hari).
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13. PEMIUTANG DAN AKRUAN
2006 2005 RM RM
Pendahuluan untuk buku panduan belajar 124,760 198,885 Hutang kepada persatuan pelajar 161,373 143,923 Pemiutang lain 215,720 125,583 Akruan 345,448 430,765
847,301 899,156
14. PINJAMAN BERJANGKA BERCAGAR
Bayaran balik bagi pinjaman adalah seperti berikut:-
2006 2005 RM RM
Semasa - Dalam masa satu tahun 125,585 110,396
Bukan Semasa - Lebih dari satu tahun tetapi kurang dari lima tahun 174,400 305,759
299,985 416,155
Pinjaman berjangka dikenakan faedah pada 1.5% lebih daripada kadar pinjaman asas (BLR) bank setahun, dikira setiap bulan. Pinjaman berjangka tersebut dikeluar guna sepenuhnya pada Disember 2004 dan kena dibayar balik dengan enam-puluh ansuran bulanan sebanyak RM12,138 setiap satu bermula dari Januari 2005. Kadar faedah purata berwajaran pada tahun kewangan adalah 8.23% (2005: 7.5%) setahun.
Amaun bayaran balik pinjaman berjangka dalam masa satu tahun berjumlah RM125,585 merupakan bayaran balik pokok sahaja.
Pinjaman berjangka bercagar secara:-
(i) “Negative pledge” ke atas aset MICPA.
(ii) “Lienholder’s caveat” ke atas hartanah Tabung Amanah Pendidikan MACPA yang terletak di No. 15, Jalan Medan Tuanku, 50300 Kuala Lumpur.
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15. AKTIVITI LAIN
Lebihan/ Pendapatan Belanja (Defisit) 2006 RM RM RM
Bengkel peperiksaan 380,525 251,169 129,356 Pembangunan profesional berterusan 241,770 152,198 89,572 Majlis jamuan tahunan 63,800 80,707 (16,907) Syarahan kenangan dan jamuan 17,400 27,581 (10,181) Anugerah kecemerlangan MICPA 6,950 23,449 (16,499) Jurnal dan penerbitan 123,159 48,554 74,605 Perhimpunan tidak formal ahli-ahli 4,260 2,880 1,380 Buku panduan belajar MICPA 172,400 149,090 23,310 Simposium CPA Muda 15,195 13,119 2,076
1,025,459 748,747 276,712
Aktiviti yang dikelolakan bersama pertubuhan lain: Forum perniagaan 102,874 – 102,874 Pertandingan NACRA – 1,792 (1,792) Ulasan belanjawan 2007 100,224 – 100,224 Seminar dianjurkan bersama 35,775 – 35,775
238,873 1,792 237,081
1,264,332 750,539 513,793
Lebihan/ Pendapatan Belanja (Defisit) 2005 RM RM RM
Minggu perakaunan 23,755 35,998 (12,243) Bengkel peperiksaan 375,167 279,415 95,752 Pembangunan profesional berterusan 333,855 157,730 176,125 Majlis jamuan tahunan 75,790 80,731 (4,941) Syarahan kenangan dan jamuan 30,120 37,786 (7,666) Anugerah kecemerlangan MICPA 10,360 22,288 (11,928) Jurnal dan penerbitan 11,554 4,255 7,299 Perhimpunan tidak formal ahli-ahli 2,350 2,275 75 Buku panduan belajar MICPA 149,822 155,708 (5,886) Forum perniagaan 245,983 85,925 160,058
1,258,756 862,111 396,645
Aktiviti yang dikelolakan bersama pertubuhan lain:
Pertandingan NACRA – 1,177 (1,177) Ulasan belanjawan 2006 102,200 – 102,200 Seminar dianjurkan bersama 5,598 – 5,598 Forum “International Education Standards” 2,696 – 2,696
110,494 1,177 109,317
1,369,250 863,288 505,962
Belanja bagi aktiviti di atas merupakan belanja langsung yang dapat dikenalpasti sahaja dan tidak termasuk belanja overhed.
Belanja untuk buku panduan belajar MICPA termasuk perlunasan kos pembangunan buku panduan belajar berjumlah RM120,489 (2005: RM126,907).
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16. PENDAPATAN LAIN
2006 2005 RM RM
Faedah simpanan tetap 14,642 12,329 Denda diterima yang timbul dari tindakan disiplin 6,188 12,375 Jualan label pengiriman 5,026 1,838 Lain-lain 4,750 2,600
30,606 29,142
17. BELANJA KENDALIAN
2006 2005 RM RM
Belanja pengiklanan 40,320 11,325 Belanja mesyuarat agung tahunan dan mesyuarat majlis 3,370 4,966 Elaun untuk hutang ragu 1,425 – Ganjaran juruaudit 6,300 6,300 Hutang lapuk dihapuskira 52,967 35,955 Bayaran bank 15,204 3,611 Program pemajuan jenama 21,000 51,500 Susut nilai 24,979 29,736 Belanja langsung peperiksaan 76,256 88,287 Elektrik dan air 27,646 26,038 Belanja am 5,807 7,547 Insuran 6,837 6,402 Jurnal dan pernyataan teknikal 187,391 135,155 Bayaran perundangan dan profesional 17,762 10,590 Penyelenggaraan 21,097 17,079 Belanja perubatan 5,070 4,302 Sewa pejabat 96,000 96,000 Majalah dan stok perpustakaan 10,694 4,338 Pos dan telefon 116,701 111,332 Percetakan dan alatulis 71,525 64,877 Belanja pembangunan profesional 108,544 158,844 Penerbitan bahan kursus pelajar 4,725 9,300 Semakan semula kelayakan MICPA 5,533 161,701 Kos pekerja - Kumpulan Wang Simpanan Pekerja dan SOCSO 205,110 190,006 - Gaji dan bonus 1,243,869 1,187,345 Dana rekreasi pekerja 5,374 3,000 Yuran kepada badan perakaunan antarabangsa 26,380 22,452 Belanja perjalanan 24,384 23,637
2,432,270 2,471,625
Belanja langsung peperiksaan termasuk sejumlah RM3,221 (2005: RM2,147) yang dibayar kepada seorang ahli Majlis sebagai bayaran perkhidmatan pemeriksa.
18. KOS KEWANGAN
2006 2005 RM RM
Faedah pinjaman berjangka 29,487 35,836
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19. BELANJA CUKAI
Bagi tujuan cukai, Institut ditaksirkan sebagai “Persatuan Dagangan” di bawah seksyen 53(3) Akta Cukai Pendapatan, 1967. Oleh itu pendapatannya dikenakan cukai mengikut kadar skala.
2006 2005 RM RM
Belanja cukai semasa 314 245
Cukai telah diperuntukkan bagi pendapatan faedah yang diperolehi oleh Institut.
Penyelarasan berangka antara kadar cukai efektif dan kadar cukai yang dikenakan bagi Institut adalah seperti berikut:
2006 2005 % %
Kadar cukai dikenakan 28.00 (28.00)
Kesan cukai berkaitan dengan: Pendapatan tidak dikena cukai (0.39) –
Penggunaan elaun modal belum diserap dan kerugian cukai (35.35) (4.16) Belanja tidak dibenar potongan 9.17 35.71 Pengurangan kadar cukai berkanun (1.32) (3.30)
Kadar cukai efektif 0.11 0.25
Aset cukai tertunda
Aset cukai tertunda tidak diiktiraf bagi butiran yang berikut:-
2006 2005 RM RM
Kerugian cukai belum guna 159,777 263,330
Kerugian cukai belum guna boleh digunakan pada tempoh masa yang tidak berbatas untuk mengimbang balas keuntungan bercukai Institut pada masa depan, tertakluk kepada persetujuan Jabatan Hasil Dalam Negeri. Aset cukai tertunda tidak diiktiraf bagi butiran di atas oleh kerana tidak berkemungkinan keuntungan bercukai pada masa depan akan berlaku terhadapnya perbezaan sementara boleh diberikan potongan boleh dipakai.
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20. TUNAI DAN KESETARAAN TUNAI
Tunai dan kesetaraan tunai terdiri daripada tunai dalam tangan dan baki di bank dan simpanan tetap. Tunai dan kesetaraan tunai termasuk dalam penyata aliran tunai terdiri daripada amaun kunci kira-kira yang berikut:-
2006 2005 RM RM
Simpanan tetap 400,000 150,000 Tunai dan baki di bank 24,855 53,615
424,855 203,615
21. INSTRUMEN KEWANGAN
Risiko kredit
Pada 31 Disember 2006, Institut mempunyai penghutang punca yuran tahunan berjumlah RM309,984 yang belum diterima bagi tempoh melebihi 30 hari dan baki bank dan simpanan tetap sebanyak RM423,855 dengan beberapa buah institusi perbankan berlesen utama di Malaysia. Selain daripada yang tersebut, Institut tidak mempunyai tumpuan risiko kredit yang ketara. Pendedahan kepada risiko kredit maksimum adalah diwakili oleh nilai buku aset kewangan dalam kunci kira-kira.
Nilai saksama
Nilai buku instrumen kewangan Institut pada 31 Disember 2006 menghampiri nilai saksamanya.
22. KEBENARAN UNTUK PENERBITAN PENYATA KEWANGAN
Penyata kewangan dibenarkan untuk penerbitan oleh Majlis pada 4 Mei 2007.
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ANNUAL REPORT 2006
Penyata oleh Ahli-ahli MajlisMenurut pendapat ahli-ahli Majlis, penyata kewangan pada mukasurat 81 hingga 96 telah disediakan mengikut Piawaian Pelaporan Kewangan MASB kena dipakai dan peruntukan Akta Syarikat, 1965 supaya memberi gambaran yang benar dan saksama mengenai kedudukan Institut pada 31 Disember 2006 dan keputusannya serta aliran tunainya bagi tahun kewangan berakhir pada tarikh tersebut.
Bagi pihak Ahli-ahli Majlis,
Dato’ Ab Halim MohyiddinPresiden
Dato’ Nordin BaharuddinNaib Presiden
Kuala Lumpur 4 Mei 2007
Akuan Berkanun
Saya, Tan Shook Kheng, selaku pegawai yang terutama bertanggungjawab ke atas pengurusan kewangan Institut Akauntan Awam Bertauliah Malaysia, dengan sesungguhnya dan tulus ikhlas mengaku bahawa penyata kewangan yang dibentangkan pada mukasurat 81 hingga 96 adalah sebaik-baik pengetahuan dan kepercayaan saya adalah betul, dan saya membuat pengakuan ini dengan penuh kepercayaan bahawa perkara-perkara tersebut adalah benar serta menurut Akta Akuan Berkanun, 1960.
Ditandatangani dan diakui oleh penama di atasTAN SHOOK KHENGdi Kuala Lumpurpada 4hb Mei 2007
Di hadapan saya :-
Wong Ah Ying Pesuruhjaya Sumpah Kuala Lumpur
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ANNUAL REPORT 2006
Laporan Juruaudit Kepada Ahli-ahli The Malaysian Institute of Certified Public Accountants (3246-U) (Institut Akauntan Awam Bertauliah Malaysia)
Kami telah mengaudit penyata kewangan yang dibentangkan pada mukasurat 81 hingga 96.
Penyata kewangan tersebut adalah tanggungjawab Majlis.
Adalah menjadi tanggungjawab kami untuk membuat pendapat bebas kami ke atas penyata kewangan tersebut berdasarkan audit kami dan untuk melaporkan pendapat kami kepada anda, sebagai satu badan, menurut Seksyen 174, Akta Syarikat, 1965 dan bukan untuk tujuan-tujuan lain. Kami tidak menerima tanggungjawab terhadap mana-mana pihak lain tentang kandungan laporan ini.
Kami telah menjalankan audit kami mengikut piawaian pengauditan yang diluluskan kena dipakai di Malaysia. Piawaian tersebut memerlukan kami merancang dan melaksanakan audit untuk mendapat keyakinan yang munasabah tentang sama ada penyata kewangan tersebut bebas dari sebarang salahnyata yang ketara. Sesuatu audit merangkumi pemeriksaan, berasaskan ujian, bukti yang menyokong jumlah dan pendedahan dalam penyata kewangan. Sesuatu audit juga termasuk penaksiran prinsip-prinsip perakaunan yang digunakan dan anggaran-anggaran penting yang dibuat oleh Majlis, serta penilaian pembentangan penyata kewangan secara keseluruhannya. Kami percaya bahawa audit kami memberikan asas yang munasabah bagi pendapat kami.
Pada pendapat kami:
(a) penyata kewangan telah disediakan dengan sewajarnya menurut Piawaian Pelaporan Kewangan MASB kena dipakai dan peruntukan Akta Syarikat, 1965 untuk memberi gambaran yang benar dan saksama mengenai:-
(i) perkara-perkara yang dikehendaki oleh Seksyen 169 Akta Syarikat, 1965 untuk diambilkira dalam penyata kewangan Institut; dan
(ii) kedudukan kewangan Institut pada 31 Disember 2006 dan hasil urusan serta aliran tunainya bagi tahun kewangan berakhir pada tarikh tersebut; dan
(b) rekod-rekod perakaunan dan rekod-rekod lain serta daftar-daftar yang dikehendaki oleh Akta untuk disimpan oleh Institut telah disimpan dengan sempurna menurut peruntukan-peruntukan Akta tersebut.
Datuk Tan Kim Leong235/06/07 (J/PH)Akauntan Bertauliah
Siew Kah Toong1045/03/08 (J)Akauntan Bertauliah
Kuala Lumpur 4 Mei 2007
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MACPA Educational Trust Fund
Report & Financial StatementsDecember 31, 2006
MACPA Educational Trust Fund
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MACPA Educational Trust Fund
TRUSTEES: DatukAbuHassanKendutLarrySeowThiamFattDato’Hj.MegatAbdulRahmanMegatAhmadDr.NawawiMatAwinSubimalSenGuptaDato’Hj.ZainalAbidinPutih
AUDITORS: DatukTanKimLeongSiewKahToong
PRINCIPALPLACEOFBUSINESS: No.15,JalanMedanTuanku50300KualaLumpur
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MACPA Educational Trust Fund
REPoRT oF ThE TRusTEEs FoR ThE FINANCIAL YEAR ENDED DECEMBER 31, 2006
TheprincipalobjectsoftheMACPAEducationalTrustFund(“TrustFund”)arethepromotionandadvancementofeducationanddisseminationofknowledgeinaccountancyandrelatedsubjects.
Infurtheranceofitsobjects,theTrustFundoffersgrantstoassistacademicstaffoflocaluniversitiesincarryingoutresearchandstudyinaccountancyandrelateddisciplines.
Withtheaimtoensurethatresearchactivitiesarecarriedoutonawellco-ordinatedbasisandinareaspertinenttotheaccountancyprofessionandsociety,theTrustFundhasestablishedaResearchBoardchargedwiththeresponsibilitytoformulatetheTrustFund’sresearchobjectives,toplanandmonitoritsresearchprogramme,and to undertake publication of research findings.
Tofurtherpromoteeducationinaccountancy,theTrustFundawardsscholarshipsandstudyloansforpursuinganaccountancy qualification. The scholarships are intended to provide financial assistance to those school leavers who possess good academic record but who are financially handicapped to achieve a tertiary or professional qualification in accountancy.
The Trustees of the Trust Fund have pleasure in submitting the financial statements of the Trust Fund for the financial year ended December 31, 2006.
OnbehalfoftheTrustees,
…………………………………………………….Dato’ hj. Megat Abdul Rahman Megat Ahmad Trustee
…………………………………………………….Datuk Abu hassan Kendut Trustee
KualaLumpurMay 4, 2007
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MACPA Educational Trust Fund
BALANCE shEET As AT DECEMBER 31, 2006 2006 2005
Note RM RM
Non-Current Assets
Property and equipment 6 1,707,514 1,735,121
Current Assets
Tax recoverable 7 43,466 43,466 Sundry receivables 8 22,233 12,000 Fixeddepositwithalicensedbank 40,858 39,593
Bankbalance 83,548 15,549
190,105 110,608
Current Liability
Accruals 14,100 5,275
14,100 5,275
Net Current Assets 176,005 105,333
1,883,519 1,840,454
Accumulated Funds
Balance as at January 1 1,745,224 1,726,524Net surplus for the financial year 70,669 18,700
BalanceasatDecember31 1,815,893 1,745,224
Advances from MICPA 9 67,626 95,230
1,883,519 1,840,454
The above Balance Sheet is to be read in conjunction with the notes to the financial statements on pages 106 to 109.
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MACPA Educational Trust Fund
INCoME sTATEMENT FoR ThE FINANCIAL YEAR ENDED DECEMBER 31, 2006
2006 2005 Note RM RM
Income
Rental 96,000 96,000Donations 64,000 13,750Fixed deposit interest 1,264 1,166
161,264 110,916
Expenses
Assessment and quit rent 16,256 16,153Auditors’remuneration- current year 2,000 2,000-overprovisioninprioryear – (100)Depreciation 30,657 30,047Insurance 844 599Legalandprofessionalfee 4,095 5,146 Printing and stationery 216 234 Repairsandmaintenance – 700 54,068 54,779Scholarships, research grants and expenses 36,527 37,437
(90,595) (92,216)
surplus Before Tax 70,669 18,700
Tax Expense 7 – –
Net surplus for the Financial Year 70,669 18,700
The above Income Statement is to be read in conjunction with the notes to the financial statements on pages 106 to 109.
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MACPA Educational Trust Fund
sTATEMENT oF RECogNIsED gAINs AND LossEs FoR ThE FINANCIAL YEAR ENDED DECEMBER 31, 2006
2006 2005 RM RM
Net surplus for the financial year 70,669 18,700
The above Statement of Recognised Gains and Losses is to be read in conjunction with the notes to the financial statements on pages 106 to 109.
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MACPA Educational Trust Fund
CAsh FLow sTATEMENT FoR ThE FINANCIAL YEAR ENDED DECEMBER 31, 2006
2006 2005 Note RM RM
Cash Flows from operating Activities
Cashreceipts Proceeds from rental 96,000 96,000 Donations 64,000 13,750
Cashpayments Operatingexpenses (34,819) (25,397) Scholarships, research grants and expenses (26,527) (37,437)
Net cash generated from operating activities 98,654 46,916
Cash Flows from Investing Activities
Additionstopropertyandequipment (3,050) –Fixed deposit interest received 1,264 1,166
Net cash (used in)/from investing activities (1,786) 1,166
Cash Flows from Financing Activities
Advances from MICPA 68,396 62,835Repayment of advances from MICPA (96,000) (96,000)
Net cash used in financing activities (27,604) (33,165)
Net Increase in Cash and Cash Equivalents 69,264 14,917
Cash and Cash Equivalents at Beginning of the Financial Year 55,142 40,225
Cash and Cash Equivalents at End of the Financial Year 10 124,406 55,142
The above Cash Flow Statement is to be read in conjunction with the notes to the financial statements on pages 106 to 109.
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MACPA Educational Trust Fund
NoTEs To ThE FINANCIAL sTATEMENTs DECEMBER 31, 2006
1. gENERAL INFoRMATIoN
The Trust Fund is a non-profit organisation, incorporated and domiciled in Malaysia.
The registered office and principal place of business of the Trust Fund is located at No. 15, Jalan Medan Tuanku,50300KualaLumpur.
The financial statements are presented in Ringgit Malaysia.
2. FINANCIAL RIsK MANAgEMENT oBJECTIVEs AND PoLICIEs
The main risks arising from the Trust Fund’s financial instruments are liquidity risk and credit risk. The Trusteesreviewandagreepoliciesformanagingeachoftheserisksandtheyaresummarisedbelow.
Liquidity Risk
The Trust Fund receives its funds from The Malaysian Institute of Certified Public Accountants (“MICPA”). The funds are considered to be interest-free, unsecured and have no fixed terms of repayment. As such, the financial stability of the Trust Fund is directly related to that of MICPA.
Credit Risk
Transactionswithbankinginstitutionsmaygiverisetocreditriskwhichrequirethelosstoberecognisedifacounterpartyfailstoperformascontracted.Thecounterpartyisalicensedbankinginstitution.Itisthe policy of the Trust Fund to monitor the financial standing of this counter party on an ongoing basis to ensurethattheTrustFundisexposedtominimalcreditrisk.
3. PRINCIPAL oBJECTs
The principal objects of the MACPA EducationalTrust Fund (“Trust Fund”) are the promotion andadvancementofeducationanddisseminationofknowledgeinaccountancyandrelatedsubjects.
4. BAsIs oF PREPARATIoN oF FINANCIAL sTATEMENTs
The financial statements have been prepared under the historical cost convention unless otherwise indicated in the significant accounting policies. The financial statements comply with applicable MASB PrivateEntityReportingStandards.
The preparation of financial statements in conformity with applicable MASB Private Entity Reporting StandardsrequiresthattheTrusteesmakeestimatesandassumptionsthataffectthereportedamountsof assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statementsand the reportedamountsof revenuesandexpensesduring the reportingperiod.Actualresultscoulddifferfromthoseestimates.
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MACPA Educational Trust Fund
5. sIgNIFICANT ACCouNTINg PoLICIEs
(a) Income Recognition
(i) Rentalincomeisrecognisedonanaccrualbasis.
(ii) Donationsarerecognisedwhenreceived.
(iii) Interestincomeisrecognisedontheeffectiveyieldbasis.
(b) Property and Equipment and Depreciation
Propertyandequipmentarestatedatcostlessaccumulateddepreciationandimpairmentlosses,ifany.
Theacquisitioncostoffreeholdlandandbuildingwasapportionedbasedonaprofessionalvaluer’sreportforpurposesofcalculatingthedepreciableamountofthebuilding.
Freeholdlandisnotdepreciated.Forotherpropertyandequipment,depreciationiscalculatedtowriteoffthecostofthepropertyandequipmentonastraightlinebasisovertheirestimatedusefullives.Theannualdepreciationratesusedareasfollows:-
Building 2%Fixtures and fittings 20%
PropertyandequipmentwhicharefullydepreciatedarerecordedatanominalvalueofRM1.00.
The carrying amounts of property and equipment are reviewed at each balance sheet dateto determine whether there is any indication of impairment. If any such indication exists, therecoverableamountsareestimated.Theimpairmentlossischargedtotheincomestatementassoonasforeseeable.Conversely,theimpairmentlosswillbereverseduptothecumulativeamountpreviouslychargedtotheincomestatement,oncetheindicatorforimpairmentceasestoexist.
(c) Provisions
Provisionsarerecognisedwhenthereisapresentobligation, legalorconstructive,asaresultof a past event, when it is probable that an outflow of resources embodying economic benefits willberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.
(d) Cash and Cash Equivalents
Cashandcashequivalentscomprisecashinhand,bankbalancesandshortterm,highlyliquidinvestments that are readily convertible to cash and which are subject to an insignificant risk of changesinvalue.
(e) Financial Instruments
The accounting policies for financial instruments are disclosed in the individual policies associated witheachitem.
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MACPA Educational Trust Fund
6. PRoPERTY AND EQuIPMENT
Fixtures Freehold and 2006 land Building fittings Total RM RM RM RM
Cost
As at January 1 1,134,000 865,784 171,161 2,170,945Addition – – 3,050 3,050
As at December 31 1,134,000 865,784 174,211 2,173,995
Accumulated depreciation
As at January 1 – 291,415 144,409 435,824Charge for the financial year – 17,316 13,341 30,657
As at December 31 – 308,731 157,750 466,481
Net book value
As at December 31 1,134,000 557,053 16,461 1,707,514
Fixtures Freehold and 2005 land Building fittings Total RM RM RM RM
Cost
As at January 1/December 31 1,134,000 865,784 171,161 2,170,945
Accumulated depreciation
As at January 1 – 274,099 131,678 405,777Charge for the financial year – 17,316 12,731 30,047
As at December 31 – 291,415 144,409 435,824
Net book value
As at December 31 1,134,000 574,369 26,752 1,735,121
Alienholder’scaveathasbeenexecutedoverthefreeholdlandandbuildinginfavourofalicensedbankfor a term loan amounting to RM600,000 to MICPA to finance the production of study manuals, of which RM299,985 (2005: RM416,155) has been outstanding as at the balance sheet date.
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MACPA Educational Trust Fund
7. TAX EXPENsE/TAX RECoVERABLE
The income of the Trust Fund is tax exempt under paragraph 13, Schedule 6 to the Income Tax Act, 1967.
Thetaxauthorityhasacceptedtheappealforexemptionoftaxontheincomefortheyearsofassessment1994 to 2000 of the Trust Fund. The tax recoverable which is the over-payment of tax amounting to RM43,466 in previous years will be refunded.
8. suNDRY RECEIVABLEs
Sundry receivables include study loans provided to students for pursuing the MICPA qualification. The studyloansareinterestfreeandarerepayableoveraperiodof15months.
9. ADVANCEs FRoM MICPA
The amount represents advances from MICPA which are unsecured, interest-free and have no fixed termsofrepayment.TheMICPAhasindicatedthatitwillnotdemandfullpaymentwithinthenexttwelvemonths.
10. CAsh AND CAsh EQuIVALENTs
Cashandcashequivalentscomprisethefollowingbalancesheetamounts:-
2006 2005 RM RM
Bankbalance 83,548 15,549Fixeddepositwithalicensedbank 40,858 39,593
124,406 55,142
The weighted average interest rate during the financial year for fixed deposit with a licensed bank is 3% (2005: 3%) per annum.
The fixed deposit has a maturity of 90 days (2005: 90 days).
11. FINANCIAL INsTRuMENTs
Credit Risk
As at December 31, 2006, the Trust Fund has bank balance and fixed deposit of RM124,406 with a major licensed banking institution in Malaysia. The Trust Fund has no significant concentration of credit risk.The maximum exposures to credit risk are represented by the carrying amounts of thefinancial assets in the balance sheet.
Fair Values
The carrying amounts of the financial instruments of the Trust Fund as at December 31, 2006 approximate their fair values due to the relatively short term maturity of these financial instruments.
12. AuThoRIsATIoN FoR IssuE oF FINANCIAL sTATEMENTs
These financial statements were authorised for issue by the Trustees on May 4, 2007.
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MACPA Educational Trust Fund
sTATEMENT BY TRusTEEs
In the opinion of the Trustees, the financial statements set out on pages 102 to 109 have been drawn up in accordancewithapplicableMASBPrivateEntityReportingStandardssoastogiveatrueandfairviewofthestate of affairs of the MACPA Educational Trust Fund as at December 31, 2006 and of its results and cash flows for the financial year then ended.
OnbehalfoftheTrustees,
……………………………………………………Dato’ hj. Megat Abdul Rahman Megat Ahmad Trustee
………………………………….……Datuk Abu hassan Kendut Trustee
KualaLumpurMay 4, 2007
sTATuToRY DECLARATIoN
I, Tan Shook Kheng, being the person primarily responsible for the financial management of the MACPA Educational Trust Fund, do solemnly and sincerely declare that the financial statements set out on pages 102 to109are,tothebestofmyknowledgeandbelief,correctandImakethissolemndeclarationconscientiouslybelieving the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribedandsolemnlydeclaredbytheabovenamed )TanShookKheng )atKualaLumpurthis )4th day of May, 2007 )
Before me:-
WongAhYingCommissionerforOathsKualaLumpur
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MACPA Educational Trust Fund
REPoRT oF ThE AuDIToRsTo ThE TRusTEEs oF MACPA EDuCATIoNAL TRusT FuND
We have audited the financial statements as set out on pages 102 to 109.
These financial statements are the responsibility of the Trustees.
It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to reportouropiniontoyou,asabody,andfornootherpurpose.Wedonotassumeresponsibilitytowardsanyotherpersonforthecontentofthisreport.
Weconductedouraudit inaccordancewithapplicableapprovedstandardsonauditing inMalaysia.Thesestandards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingthe amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Trustees, as well as evaluating the overall financial statementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.
Inouropinion:-
(a) the financial statements have been properly drawn up in accordance with applicable MASB Private Entity Reporting Standards so as to give a true and fair view of the financial position of the MACPA Educational Trust Fund as at December 31, 2006 and of its results and cash flows for the financial year then ended; and
(b) theaccountingandotherrecordsof theMACPAEducationalTrustFundexaminedbyushavebeenproperlykept.
Datuk Tan Kim Leong 235/06/07 (J/PH)CharteredAccountant
siew Kah Toong 1045/03/08(J)CharteredAccountant
KualaLumpurMay 4, 2007
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Tabung Amanah Pendidikan MACPA
LAPORAN PEMEGANG-PEMEGANG AMANAH BAGI TAHUN BERAKHIR 31 DISEMBER 2006
Matlamat utama Tabung Amanah Pendidikan MACPA (TAP) adalah penggalakan dan kemajuan pendidikan serta penyebaran pengetahuan perakaunan dan bidang-bidang lain yang berkaitan.
Untuk mencapai matlamat tersebut, TAP menawarkan bantuan kewangan kepada kakitangan akademik universiti-universiti tempatan untuk menjalankan penyelidikan dan kajian dalam bidang perakaunan dan disiplin-disiplin yang berkaitan.
Dengan tujuan untuk mempastikan bahawa kegiatan penyelidikan dijalankan pada asas yang lebih berkordinasi dan dalam bidang yang berhubung dengan profesion perakaunan dan masyarakat, TAP telah melantik suatu Lembaga Penyelidikan. Tanggungjawab Lembaga tersebut adalah merumus objektif penyelidikan TAP, merancang dan mengawasi program penyelidikan, dan menerbitkan hasil penyelidikan.
Untuk menggalakkan lagi pendidikan dalam bidang perakaunan, TAP menghadiahkan biasiswa dan pinjaman pelajaran untuk mencapai kelayakan perakaunan. Tujuannya adalah untuk memberi bantuan kewangan kepada lepasan sekolah yang mempunyai prestasi akademik yang baik tetapi menghadapi rintangan kewangan untuk mencapai kelayakan lanjutan atau profesional dalam bidang perakaunan.
Pemegang-pemegang Amanah dengan sukacitanya mengemukakan penyata kewangan TAP bagi tahun kewangan berakhir 31 Disember 2006.
Bagi pihak Pemegang-Pemegang Amanah,
……………………………………………………. Dato’ Hj. Megat Abdul Rahman Megat Ahmad Pemegang Amanah
……………………………………………………. Datuk Abu Hassan Kendut Pemegang Amanah
Kuala Lumpur 4 Mei 2007
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Tabung Amanah Pendidikan MACPA
KUNCI KIRA-KIRA PADA 31 DISEMBER 2006
2006 2005 Nota RM RM
Aset Bukan Semasa
Hartanah dan peralatan 6 1,707,514 1,735,121
Aset Semasa
Cukai yang boleh didapatkan kembali 7 43,466 43,466 Pelbagai penghutang 8 22,233 12,000 Simpanan tetap dengan bank berlesen 40,858 39,593
Baki di bank 83,548 15,549
190,105 110,608
Liabiliti Semasa
Akruan 14,100 5,275
14,100 5,275
Aset Semasa Bersih 176,005 105,333
1,883,519 1,840,454
Dana Terkumpul
Baki pada 1 Januari 1,745,224 1,726,524 Lebihan bersih bagi tahun kewangan 70,669 18,700
Baki pada 31 Disember 1,815,893 1,745,224
Pendahuluan daripada MICPA 9 67,626 95,230
1,883,519 1,840,454
Kunci Kira-kira di atas hendaklah dibaca bersama dengan nota kepada penyata kewangan di mukasurat 117 hingga 120.
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Tabung Amanah Pendidikan MACPA
PENyATA PENDAPATAN BAGI TAHUN KEwANGAN BERAKHIR 31 DISEMBER 2006
2006 2005 Nota RM RM
Pendapatan
Sewa 96,000 96,000 Derma 64,000 13,750 Faedah simpanan tetap 1,264 1,166
161,264 110,916
Belanja
Taksiran dan cukai tanah 16,256 16,153 Ganjaran juruaudit - tahun semasa 2,000 2,000 - terlebih peruntukan pada tahun terdahulu – (100) Susut nilai 30,657 30,047 Insurans 844 599 Bayaran perundangan dan profesional 4,095 5,146 Percetakan dan alatulis 216 234 Pembaikan dan penyelenggaraan – 700
54,068 54,779 Biasiswa, bantuan dan belanja penyelidikan 36,527 37,437
(90,595) (92,216)
Lebihan Sebelum Cukai 70,669 18,700
Belanja Cukai 7 – –
Lebihan Bersih bagi Tahun Kewangan 70,669 18,700
Penyata Pendapatan di atas hendaklah dibaca bersama dengan nota kepada penyata kewangan di mukasurat 117 hingga 120.
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Tabung Amanah Pendidikan MACPA
PENyATA KEUNTUNGAN DAN KERUGIAN yANG DIIKTIRAf BAGI TAHUN KEwANGAN BERAKHIR 31 DISEMBER 2006
2006 2005 RM RM
Lebihan bersih bagi tahun kewangan 70,669 18,700
Penyata Keuntungan dan Kerugian yang Diiktiraf di atas hendaklah dibaca dengan nota kepada penyata kewangan di mukasurat 117 hingga 120.
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Tabung Amanah Pendidikan MACPA
PENyATA ALIRAN TUNAI BAGI TAHUN KEwANGAN BERAKHIR 31 DISEMBER 2006
2006 2005 Nota RM RM
Aliran Tunai daripada Aktiviti Kendalian
Penerimaan tunai Hasil daripada sewa 96,000 96,000 Derma 64,000 13,750
Bayaran tunai Belanja kendalian (34,819) (25,397) Biasiswa, bantuan penyelidikan dan belanja kendalian (26,527) (37,437)
Tunai bersih terjana daripada aktiviti kendalian 98,654 46,916
Aliran Tunai daripada Aktiviti Pelaburan
Tambahan kepada hartanah dan peralatan (3,050) – Faedah simpanan tetap diterima 1,264 1,166
Tunai bersih (diguna dalam)/daripada aktiviti pelaburan (1,786) 1,166
Aliran Tunai daripada Aktiviti Pembiayaan
Pendahuluan daripada MICPA 68,396 62,835 Pembayaran balik pendahuluan daripada MICPA (96,000) (96,000)
Tunai bersih diguna dalam aktiviti pembiayaan (27,604) (33,165)
Lebihan Bersih dalam Tunai dan Kesetaraan Tunai 69,264 14,917
Tunai dan Kesetaraan Tunai pada Awal Tahun Kewangan 55,142 40,225
Tunai dan Kesetaraan Tunai pada Akhir Tahun Kewangan 10 124,406 55,142
Penyata Aliran Tunai di atas hendaklah dibaca bersama dengan nota kepada penyata kewangan di mukasurat 117 hingga 120.
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Tabung Amanah Pendidikan MACPA
NOTA KEPADA PENyATA KEwANGAN 31 DISEMBER 2006
1. MAKLUMAT AM
Tabung Amanah Pendidikan adalah sebuah organisasi tidak bertujuan mendatangkan keuntungan yang diperbadankan dan berdomisil di Malaysia.
Pejabat berdaftar dan tempat utama perniagaan Tabung Amanah terletak di No. 15, Jalan Medan Tuanku, 50300 Kuala Lumpur.
Penyata kewangan Tabung Amanah telah dibentangkan dalam Ringgit Malaysia.
2. POLISI DAN OBJEKTIf PENGURUSAN RISIKO KEwANGAN
Risiko utama yang timbul dari instrumen penyata kewangan Tabung Amanah ialah risiko mudah tunai dan risiko kredit. Pemegang Amanah menyemak semula dan mempersetujukan polisi untuk pengurusan tiap-tiap risiko tersebut yang diringkaskan seperti berikut:
Risiko Mudah Tunai
TabungAmanahmenerima tabungdaripadaTheMalaysian InstituteofCertifiedPublicAccountants(MICPA). Tabung tersebut dianggap tanpa faedah, tidak bercagar dan tidak mempunyai syarat pembayaran balik yang tetap. Oleh yang demikian, kestabilan kewangan Tabung Amanah berkait langsung dengan kestabilan kewangan MICPA.
Risiko Kredit
Urus niaga dengan institusi perbankan mungkin menimbulkan risiko kredit yang memerlukan kerugian diiktirafkan sekiranya pihak peniaga balas gagal melaksanakan urusan mengikut kontrak. Pihak peniaga balas adalah sebuah institusi perbankan berlesen. Adalah menjadi dasar Tabung Amanah untuk memantau kedudukan kewangan pihak peniaga balas secara berterusan untuk memastikan bahawa pendedahan Tabung Amanah terhadap risiko kredit adalah minimum.
3. MATLAMAT UTAMA
Matlamat utama Tabung Amanah Pendidikan MACPA (TAP) adalah penggalakan dan kemajuan pendidikan serta penyebaran pengetahuan perakaunan dan bidang-bidang lain yang berkaitan.
4. ASAS PENyEDIAAN PENyATA KEwANGAN
Penyata kewangan telah disediakan berasaskan konvensyen kos sejarah kecuali sepertimana yang dinyatakan sebaliknya dalam polisi perakaunan penting. Penyata kewangan mematuhi Piawaian Pelaporan Entiti Swasta MASB kena dipakai.
Penyediaan penyata kewangan menurut Piawaian Pelaporan Entiti Swasta MASB kena dipakai memerlukan Pemegang Amanah membuat anggaran dan andaian yang memberi kesan ke atas jumlah aset dan liabiliti dilaporkan serta pemberitahuan aset dan liabiliti luar jangka pada tarikh penyata kewangan dan jumlah pendapatan dan belanja dilaporkan dalam tempoh pelaporan. Keputusan sebenar boleh berlainan daripada anggaran tersebut.
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Tabung Amanah Pendidikan MACPA
5. POLISI-POLISI PERAKAUNAN yANG PENTING
(a) Pengiktirafan Pendapatan
(i) Pendapatan sewa diiktiraf pada asas akruan.
(ii) Derma diiktiraf apabila diterima.
(iii) Pendapatan faedah diiktiraf berasaskan kadar hasil yang efektif.
(b) Hartanah dan Peralatan dan Susut Nilai
Hartanah dan peralatan dicatat pada kos tolak susut nilai terkumpul dan kerugian kemerosotan nilai terkumpul, jika ada.
Kos perolehan tanah milik bebas dan bangunan telah dibahagikan berdasarkan laporan penilai profesional bagi tujuan mengira nilai bangunan yang boleh disusutnilaikan.
Tanah milik bebas tidak disusutnilaikan. Bagi hartanah dan peralatan lain, susut nilai telah dikira supaya menghapuskirakan kos hartanah dan peralatan mengikut asas garis lurus ke atas hayat berguna yang dijangkakan bagi aset berkenaan. Kadar susut nilai tahunan yang digunakan adalah seperti berikut :
Bangunan 2% Lekapan dan lengkapan 20%
Hartanah dan peralatan yang telah disusut nilai sepenuhnya dicatat pada nilai nominal RM1.00.
Nilai buku hartanah dan peralatan disemak semula pada setiap tarikh kunci kira-kira untuk menentukan sama ada berwujud tanda-tanda kemerosotan nilai. Sekiranya tanda-tanda tersebut wujud, jumlah yang boleh didapati kembali dianggarkan. Kerugian kemerosotan nilai diiktiraf dalam penyata pendapatan sebaik sahaja didapati akan berlaku pada masa hadapan berjangka. Sebaliknya, kerugian kemerosotan nilai diambilkira balik hingga jumlah terkumpul yang diiktiraf dalam penyata pendapatan sebelum ini, pada ketika tanda kemerosotan nilai tidak wujud lagi.
(c) Peruntukan
Peruntukan adalah diiktiraf apabila terdapat obligasi semasa, sama ada sah di sisi undang-undang atau konstruktif, yang diakibatkan oleh peristiwa lepas, apabila terdapatnya kemungkinan bahawa aliran keluar sumber melibatkan manfaat ekonomi akan diperlukan untuk menyelesaikan obligasi tersebut dan anggaran yang boleh dipercayai dapat dibuat bagi amaun obligasi.
(d) Tunai dan Kesetaraan Tunai
Tunai dan kesetaraan tunai terdiri daripada tunai dalam tangan, baki bank dan pelaburan jangka pendek yang amat mudah cair yang boleh ditukar dengan mudah kepada tunai dan tertakluk kepada risiko perubahan nilai yang tidak ketara.
(e) Instrumen Kewangan
Dasar perakaunan untuk instrumen kewangan adalah dinyatakan dalam polisi individu yang berkaitan dengan tiap-tiap instrumen.
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Tabung Amanah Pendidikan MACPA
6. LOJI DAN PERALATAN
Lekapan Tanah dan 2006 milik bebas Bangunan lengkapan Jumlah RM RM RM RM
Kos
Pada 1 Januari 1,134,000 865,784 171,161 2,170,945 Tambahan – – 3,050 3,050
Pada 31 Disember 1,134,000 865,784 174,211 2,173,995
Susut nilai terkumpul
Pada 1 Januari – 291,415 144,409 435,824 Susut nilai bagi tahun kewangan – 17,316 13,341 30,657
Pada 31 Disember – 308,731 157,750 466,481
Nilai buku bersih
Pada 31 Disember 1,134,000 557,053 16,461 1,707,514
Lekapan Tanah dan 2005 milik bebas Bangunan lengkapan Jumlah RM RM RM RM
Kos
Pada 1 Januari/31 Disember 1,134,000 865,784 171,161 2,170,945
Susut nilai terkumpul
Pada 1 Januari – 274,099 131,678 405,777 Susut nilai bagi tahun kewangan – 17,316 12,731 30,047
Pada 31 Disember – 291,415 144,409 435,824
Nilai buku bersih
Pada 31 Disember 1,134,000 574,369 26,752 1,735,121
“Lienholder’s caveat” telah dikuatkuasakan ke atas tanah milik bebas dan bangunan atas nama sebuah bank berlesen untuk memberikan pinjaman berjangka berjumlah RM600,000 kepada MICPA bagi tujuan membiayai kos pembangunan buku panduan belajar yang mana sebanyak RM299,985 (2005: RM416,155) yang belum bayar pada tarikh kunci kira-kira.
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Tabung Amanah Pendidikan MACPA
7. BELANJA CUKAI/CUKAI yANG DAPAT DIPEROLEHI SEMULA
Pendapatan Tabung Amanah adalah dikecualikan dari cukai menurut perenggan 13, Jadual 6, Akta Cukai Pendapatan, 1967.
Pihak berkuasa cukai telah meluluskan rayuan untuk pengecualian cukai ke atas pendapatan Tabung Amanah bagi tahun taksiran 1994 hingga 2000. Cukai yang dapat diperolehi semula akibat bayaran cukai terlebih bagi tahun-tahun sebelumnya berjumlah RM43,466 akan dikembalikan.
8. PELBAGAI PENGHUTANG
Pelbagai penghutang termasuk pinjaman pelajaran yang ditawarkan kepada pelajar-pelajar untuk mengikuti kursus MICPA. Pinjaman pelajaran tersebut adalah tanpa faedah dan perlu dibayar balik dalam tempoh 15 bulan.
9. PENDAHULUAN DARIPADA MICPA
AmauninimerupakanpendahuluandaripadaTheMalaysianInstituteofCertifiedPublicAccountants(MICPA) yang tidak bercagar, tanpa faedah dan tidak mempunyai syarat pembayaran balik yang tetap. MICPA telah menyatakan bahawa pembayaran balik sepenuhnya tidak akan dituntut dalam tempoh dua belas bulan berikutnya.
10. TUNAI DAN KESETARAAN TUNAI
Tunai dan kesetaraan tunai terdiri daripada amaun kunci kira-kira yang berikut:-
2006 2005 RM RM
Baki di bank 83,548 15,549 Simpanan tetap dengan bank berlesen 40,858 39,593
124,406 55,142
Kadar faedah purata berwajaran pada tahun kewangan untuk simpanan tetap dengan sebuah bank berlesen ialah 3% (2005: 3%) setahun.
Tempoh matang simpanan tetap ialah 90 hari (2005: 90 hari).
11. INSTRUMEN KEwANGAN
Risiko Kredit
Pada 31 Disember 2006, Tabung Amanah mempunyai baki bank dan simpanan tetap sebanyak RM124,406 dengan sebuah institusi perbankan berlesen utama di Malaysia. Tabung Amanah tidak mempunyai tumpuan risiko kredit yang ketara. Pendedahan kepada risiko kredit maksimum adalah diwakili oleh nilai buku aset kewangan dalam kunci kira-kira.
Nilai Saksama
Nilai buku instrumen kewangan Tabung Amanah pada 31 Disember 2006 menghampiri nilai saksamanya oleh kerana tempoh matang instrumen kewangan agak pendek.
12. KEBENARAN UNTUK PENERBITAN PENyATA KEwANGAN
Penyata kewangan dibenarkan untuk penerbitan oleh Pemegang Amanah pada 4 Mei 2007.
Page 121
Tabung Amanah Pendidikan MACPA
PENyATA OLEH PEMEGANG-PEMEGANG AMANAH
Menurut pendapat Pemegang-pemegang Amanah, penyata kewangan yang dibentangkan pada mukasurat 113 hingga 120 telah disediakan menurut Piawaian Pelaporan Entiti Swasta MASB kena dipakai supaya memberi gambaran yang benar dan saksama mengenai kedudukan Tabung Amanah Pendidikan MACPA pada 31 Disember 2006 dan keputusannya serta aliran tunainya bagi tahun kewangan berakhir pada tarikh tersebut.
Bagi pihak Pemegang-pemegang Amanah,
………………………………….………………… Dato’ Hj. Megat Abdul Rahman Megat Ahmad Pemegang Amanah
………………………………….………………… Datuk Abu Hassan Kendut Pemegang Amanah
Kuala Lumpur 4 Mei 2007
AKUAN BERKANUN
Saya, Tan Shook Kheng, selaku pegawai yang terutama bertanggungjawab ke atas pengurusan kewangan Tabung Amanah Pendidikan MACPA, dengan sesungguhnya dan dengan tulus ikhlas mengaku bahawa penyata kewangan yang dibentangkan pada mukasurat 113 hingga 120 sebaik-baik pengetahuan dan kepercayaan saya adalah betul, dan saya membuat pengakuan ini dengan penuh kepercayaan bahawa perkara-perkara tersebut adalah benar serta menurut peruntukan Akta Akuan Berkanun, 1960.
Ditandatangani dan diakui oleh penama di atas ) TAN SHOOK KHENG ) di Kuala Lumpur ) pada 4hb Mei 2007 )
Di hadapan saya:-
Wong Ah Ying Pesuruhjaya Sumpah Kuala Lumpur
Page 122
Tabung Amanah Pendidikan MACPA
LAPORAN JURUAUDIT KEPADA PEMEGANG-PEMEGANG TABUNG AMANAH PENDIDIKAN
Kami telah mengaudit penyata kewangan yang dibentangkan pada mukasurat 113 hingga 120.
Penyata kewangan tersebut adalah tanggungjawab Pemegang-pemegang Amanah.
Adalah menjadi tanggungjawab kami untuk membuat pendapat bebas kami ke atas penyata kewangan tersebut berdasarkan audit kami dan untuk melaporkan pendapat kami kepada anda, sebagai suatu badan, dan bukan untuk tujuan-tujuan lain. Kami tidak menerima tanggungjawab terhadap mana-mana pihak lain tentang kandungan laporan ini.
Kami telah menjalankan audit kami mengikut piawaian pengauditan yang diluluskan di Malaysia. Piawaian tersebut memerlukan kami merancang dan melaksanakan audit untuk mendapat keyakinan yang munasabah tentang sama ada penyata kewangan tersebut bebas dari sebarang salahnyata yang ketara. Sesuatu audit merangkumi pemeriksaan, berasaskan ujian, bukti yang menyokong jumlah dan pendedahan dalam penyata kewangan. Sesuatu audit juga termasuk penaksiran prinsip-prinsip perakaunan yang digunakan dan anggaran-anggaran penting yang dibuat oleh Pemegang-pemegang Amanah, serta penilaian pembentangan penyata kewangan secara keseluruhannya. Kami percaya bahawa audit kami memberikan asas yang munasabah bagi pendapat kami.
Pada pendapat kami:
(a) penyata kewangan telah disediakan dengan sewajarnya menurut Piawaian Pelaporan Entiti Swasta MASB kena dipakai untuk memberi gambaran yang benar dan saksama mengenai kedudukan kewangan Tabung Amanah Pendidikan MACPA pada 31 Disember 2006 dan hasil urusan serta aliran tunainya bagi tahun kewangan berakhir pada tarikh tersebut; dan
(b) rekod-rekod perakaunan dan rekod-rekod lain Tabung Amanah Pendidikan MACPA yang diperiksa oleh kami telah disimpan dengan sempurna.
Datuk Tan Kim Leong 235/06/07 (J/PH) Akauntan Bertauliah
Siew Kah Toong 1045/03/08 (J) Akauntan Bertauliah
Kuala Lumpur 4 Mei 2007
Page 123
Form of Proxy
I, _________________________________________________________________________
(Full Name in Block Capitals)
of _________________________________________________________________________
beingamemberoftheabovenamedInstituteherebyappoint
1. _________________________________________________________________________
(Full Name)
______________________________________________________________________or
(Address)
2._________________________________________________________________________
(Full Name)
_________________________________________________________________________
(Address)
asmyproxytoattendonmybehalftheAnnualGeneralMeetingoftheInstitutetobeheldatBilikMeranti, Level 4, Seri Pacific Hotel, Jalan Putra, Kuala Lumpur on June 23, 2007 at 10:00 a.m. andatanyadjournmentthereof.
Signature___________________________________________________________________
Dated this ____________________________ day of _________________, 20 ___________
Note:
Amemberentitledtoattendandvoteatthismeetingisentitledtoappointaproxytoattendandvoteinhisstead.AproxymustbeamemberoftheInstitute.Theinstrumentappointingtheproxymust be deposited at the office of the Institute at No. 15, Jalan Medan Tuanku, 50300 Kuala Lumpurnotlessthan48hoursbeforethetimesetforholdingthemeeting.
The Malaysian Institute of Certified Public Accountants (Institut Akauntan Awam Bertauliah Malaysia) (3246-U) (Company Incorporated in Malaysia Limited by Guarantee)
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