Move To Converge On Single Global Accounting Standard

KUALA LUMPUR, Nov 4 (Bernama)-The Malaysian Accounting Standards Board (MASB) and 23 other accounting standard-setters in the Asian-Oceanian region held their first meeting today in Kuala Lumpur to facilitate the convergence to a single global accounting standard.

MASB chairman Mohammad Faiz Azmi said the regional forum was to facilitate covergence with international financial reporting standards (IFRS).

"This meeting plays an important role as a stepping stone in the process of convergence with IFRS for this region," he said during the Asian-Oceanian standard-setters group meeting.

Mohammad Faiz said the first meeting was also to discuss and provide input on several of the most recent draft proposals issued by the International Accounting Standards Board (IASB).

"The discussions will include views on the fair value measurement, the presentation of financial statements, revenue recognition and the IAS 39 on hedge accounting," he said.

Besides Malaysia, the standard-setters at the meeting included representatives from Australia, China, India, Japan, Hong Kong, South Korea, New Zealand, Saudi Arabia and Singapore.

The opening ceremony was officiated by Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah.

According to Mohammad Faiz, the convergence to a single global standard will benefit the entire business community in Malaysia as well as the Asian-Oceanian region.

"It will help us to be competitive in an increasingly global market," he said.

On August 1, 2008, MASB announced a plan to converge with IFRS by January 1, 2012.

Following the announcement, MASB adopted most of the key IFRS and apart from some limited amendments or revisions, the only key ones remaining to be adopted now are IAS 39 on hedge accounting and IAS 41 on accounting standards for agricultural activity.

The proposed adoption date for IAS 39 is Jan 1, 2010, while the adoption date for IAS 41 will be announced later.

"With our participation in Asian-Oceanian standard-setters group, we hope to enable Malaysian corporate reporting stakeholders to have an influence on the direction of standards issued by the IASB," Mohammad Faiz said.

According to IASB chairman Sir David Tweedie, there are indications that the United States will eventually adopt the international financial reporting standards issued by the board.

On the effects of the global financial crisis on accounting transactions, he said there will be an impact on financial instruments such as bank loans, how to detect losses earlier and whether these should be based on value or cost.

He was speaking to reporters during the Asian-Oceanian standard-setters group meeting.

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