november 2008 examination - The Malaysian Institute Of Certified ...

participation and here we have a chance to make significantchanges to help ensure sustained economic growth.”Garry Addison as senior tax counsel spoke on behalfof CPA Australia,“ Greater incentives to join the workforceand measures to ensure enhanced international businesscompetitiveness should also be accorded priority. It isimportant that there be no financial disincentives to peopleentering the workforce, including situations wherehouseholds earn a second income.“At present the effective marginal tax rate for asecond income earner may be so high as to discourage aperson entering or rejoining the workforce. This can onlyimpact negatively on the skills shortages and productivityissues being experienced in the economy at present.”These aspects should be included in the review ofpersonal income tax. He welcomed too the review ofbusiness taxation, since an effective business tax regime iscrucial to national wealth generation.The review will look at inefficient State taxes whichcould be removed and harmonise the rest wherever possibleto reduce business compliance costs. In this context theimposition of stamp duty, a State tax, should be the focusof attention.CANADA- International FinancialReporting Standards (IFRS)These new standards come into force in Canada in 2011and it is now timely for boards and audit committees tobegin preparing for the changeover from the present GAAP(Generally Accepted Accounting Principles). This is amajor undertaking. In order to facilitate this work, theCanadian Institute of Chartered Accountants has produceda booklet entitled “20 questions directors and auditcommittees should ask about IFRS conversions”. A copymay be found at www.cica.ca/IFRS.President Kevin Dancey has said in a media release,“It is crucial for all directors to have a generalunderstanding of what the changeover will mean for theirorganisation. The document provides suggested questionsto ask of themselves, senior management and others…“Responsibility for executing the conversion to IFRSrests with management and it will be the board’sresponsibility to play an oversight role. Our document isdesigned to help directors, especially audit committeemembers, to understand the potential scope of thetransition. This involves consideration not only of theconversion process itself but of issues relating to risk,stakeholder relations, financial reporting and internalcontrols which will be triggered by the transition.”After conversion to IFRS, Canada will be on the samefooting as more than 100 other countries so far as financialreporting is concerned. As a result, Canadian companiesshould see a reduction in the cost of capital and greateraccess to international capital markets. No longer willthere have to be a reconciliation of figures between onecountry and another.MICPA Practising CertificateThe Membership Affairs Committee of the Institute in considering applications forpractising certificates, has frequently come across cases where a member hascommenced public practice before he is issued with a practising certificate by theInstitute.The Committee would like to remind members that in accordance withbye-law 56 of the Institute’s bye-laws, a member shall be entitled to engage inpublic practice in Malaysia only if he holds a practising certificate issued by theInstitute.If members need clarification on the above, kindly contact the Institute’s MembershipServices Department.The Malaysian Institute of Certified Public AccountantsNo.15 Jalan Medan Tuanku, 50300 Kuala Lumpur.Tel: 03-2698 9622 Fax: 03-2698 9403 E-mail: membership@micpa.com.mywww.micpa.com.myAugust 2008 | The Malaysian Accountant |37