Annual Report 2011 - The Malaysian Institute Of Certified Public ...

President’s Statement29accounting and auditing standardsThe Accounting and Auditing Technical Committee (AATC) hasoverall responsibility for the development and review ofaccounting, auditing and reporting standards and guidelines.The Committee is supported by specialist working groups andad hoc taskforce appointed to undertake specific projects.The Joint Working Group on Securities Guidelines (JWGSG),Due Diligence Working Group (DDWG) and SecuritiesBorrowing and Lending (SBL) Working Group were establishedto allow collaborations between the Institute and MIA in orderto adopt a united and consistent approach in makingrepresentations to the capital market regulators and inproviding technical guidance to members. Ongoing projectsinclude:Development of guidance on the preparation of proforma financial information for purposes of submissionof corporate proposals to the SecuritiesCommission (SC).Development of guidance on the accounting treatmentfor securities borrowing and lending transactions.The completed guidance will be issued to members in due course.The Corporate Governance Blueprint 2011 (CG Blueprint)Working Group was formed during the year to review anddiscuss the recommendations within for onward submission tothe Securities Commission for their consideration. The CGBlueprint detailed 35 recommendations designed to bringabout positive changes to the Malaysian corporate governancelandscape which are to be implemented over a five-year period,some of which through a new Corporate Governance Codeand changes to the Bursa Malaysia Listing Requirements. TheMalaysian Code of Corporate Governance 2012, the firstdeliverable of the CG Blueprint which will be effective onDecember 31, 2012, was recently issued.The AATC also formed joint taskforces with MICPA’sCommerce and Industry Committee (CAIC) to review anddiscuss the recommendations in the Discussion Paper, TowardsIntegrated Reporting – Communicating Value in the 21st Century,issued by the International Integrated Reporting Council andthe Proposed International Good Practice Guidance (IGPG),Evaluating and Improving Internal Control in Organisations, issuedby the Professional Accountants in Business Committee ofIFAC.During the year, the AATC issued a Technical Release (TR) andtwo Auditing Technical Releases (ATR) for members’ guidanceand compliance:TR 1, Guidance on the Role of Reporting Accountant ina Due Diligence Working GroupATR 7 (Revised), Examples of Independent Auditor’s ReportsATR 8 (Revised), Illustrative Letter of Engagement –Statutory Audit for Single Entity and GroupBased on the recommendations of the AATC, the followingIAASB pronouncements were also issued during the year tomembers for guidance:Preface to the International Standards on QualityControl, Auditing, Other Assurance andRelated ServicesGlossary of Terms (February 2009)Amended Preface to the International Quality Control,Auditing, Review, Other Assurance and Related ServicesPronouncementsInternational Standards on Assurance Engagements(ISAE) 3420, Assurance Engagements to Report on theCompilation of Pro Forma Financial InformationIncluded in a ProspectusInternational Auditing Practice Note (IAPN) 1000, SpecialConsiderations in Auditing Financial InstrumentsThe Amended Preface to the International Quality Control, Auditing, Review, Other Assurance and Related ServicesPronouncements withdraws the existing category of pronouncements known as International Auditing Practice Statements (IAPSs)and establishes a new category of pronouncements known as International Auditing Practice Notes (IAPNs).The AATC continued to review and provide feedback on exposure drafts and discussion documents issued by the MASB. Duringthe year, the MASB has issued:(a) 46 new / revised MFRSs, 4 amendments to MFRSs and 27 IC Interpretations under the MFRS Framework, and(b) 9 FRSs, 8 amendments to FRSs, and an IC Interpretation under the FRS Framework.