Malaysian trends and standards in Accounting

Better study hard if you don't want to be replaced by computers, as artificial intelligence and intelligent machines are some of the much talked about worldwide trends in accounting.

Malaysian Institute of Accountants (MIA) chief executive officer Dr Nurmazilah Mahzan said these technologies have the capability to crunch massive amount of data, analyse information and have the ability to enhance reasoning and professional judgement.

“By tapping into these technologies, accountants and financial professionals will be better supported when making complex decisions,” she said.

In Malaysia, trends in the accountancy profession are Big Data Analytics and Integrated Reporting.

“Irrespective of the industry, we generate tonnes of data every day. Accountants and financial professionals can leverage on Big Data. They have the ability to analyse data to help management make informed decisions.

"Accountants and financial professionals could play a strategic role in the organisation as their ability to interpret data could reveal business opportunities.”

Integrated Reporting is the next evolution of corporate reporting. Companies are encouraged to focus beyond financial performance, with an emphasis on the impact of their activities on the economy, environment and society. In doing so, organisations can create greater value over short to and long-term.

In Malaysia, the Integrated Reporting initiative is jointly promoted by various parties including the MIA, Securities Commission, Bursa Malaysia and PriceWaterhouse Coopers.

Aspiring accountants also need to keep pace with standards, particularly the International Financial Reporting Standards (IFRSs), a single set of accounting standards developed and maintained by the International Accounting Standards Board.

Malaysian Accounting Standards Board technical director Tan Bee Leng said with nearly 120 countries requiring the use of IFRSs by public companies while most other jurisdictions permit the use of IFRSs in at least some circumstances, knowledge of the standards will be most useful to aspiring accountants.

“It will enable them to stay relevant not only in Malaysia but also across international borders. For example, a Malaysian firm may do business with multinational clients or it may have subsidiaries overseas.

“In addition, IFRSs are developed based on clearly articulated principles and IFRSs concepts can help students develop critical analytical and thinking skills,” she added.