IAI – MIA MoU to Enhance Corporation

The Malaysian Institute of Accountants (MIA) together with the Indonesian Institute of Accountants (IAI) will facilitate closer working relationships between the business communities in particular Small and Medium Industries (SMIs) in both countries as part of a Memorandum of Understanding (MoU) inked on 24 October 2008.

Apart from facilitating linkages between business communities in both countries, the MoU will also cover several sectors for closer cooperation between both bodies in the areas of education and financial reporting.

There are plans to organise a Joint Practitioners Forum, develop educational material on International Financial Reporting Standards (IFRS) for universities and kick start joint research in case study development. Also slated for action are joint initiatives to develop accounting of Shariah-based transactions that can be applicable to both countries.

The foundation for collaboration between MIA and IAI was first set in 2003 when MIA entered into an MoU on Technical Cooperation with IAI, which expired in 2006.

"In light of globalisation and trade liberalisation, organisations cannot just operate in a vacuum. They need to be inclusive in their approach towards establishing collaborative efforts even if it means transcending borders", said MIA President Nik Mohd Hasyudeen Yusoff.

He said that it was essential to establish linkages of this nature so that both organisations will be able to leverage upon each other's strengths. "This will further spur development within the accountancy profession and consequently contribute towards nation-building in their respective countries."

Members of the ASEAN Federation of Accountants (AFA) Council were also present to witness the signing of the MoU here in Kuala Lumpur.

Speaking at the welcome reception of the 95th AFA Council Meeting in Kuala Lumpur, Nik called on fellow national accountancy bodies to take a strong position in shaping the direction of the accountancy profession to ensure that it is ultimately aligned with the goal of protecting public interest.

"Our responsibilities span education and development, professional standards and practices and ensuring high levels of ethical behavior. If collaborating with each other will enable us to do this better, then this should be the way forward", he said.