POWERING THE FUTURE - BUMPER ISSUE NOV 16 - FEB 17 - MIA
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Nov 2016 - Feb 2017
Vol. 29 No. 6 & Vol. 30 No. 1
POWERING
THE FUTURE
The accountancy landscape is
primed for disruption. Accountants
will have to press the reset button
on their skills and abilities to
capitalise on change.
NOV 16 - FEB 17
BUMPER
ISSUE
mia Council
ACCOUNTANT GENERAL
Dato’ Haji Che Pee Samsudin
PRESIDENT
Dato’ Mohammad Faiz Azmi publishing consultant
VICE-PRESIDENT Executive Mode Sdn Bhd (317453-P)
Datuk Zaiton Mohd Hassan Tel: +603-7118 3200, 3205, 3230
Vision and Mission Fax: +603-7118 3220
e-mail: executivemode@executivemode.com.my
DEPUTY ACCOUNTANT GENERAL, CORPORATE
MIA’S VISION web: www.executivemode.com.my
(Nominee of the Accountant General in MIA Council)
n To be a globally recognised and Saat Esa
printer
renowned Institute of Accountants
COUNCIL MEMBERS BHS Book Printing Sdn Bhd (95134-K)
committed to nation-building. Prof. Dr. Rozainun Abdul Aziz Lot 4, Lorong CJ 1/1B
Prof. Dr. Ayoib Che Ahmad Kawasan Perindustrian Cheras Jaya
MIA’S MISSION
Prof. Dr. Che Ruhana Isa @ Mohamed Isa 43200 Cheras, Selangor DE
n To develop, support and monitor quality Tel: +603-9076 3399, 9074 7558, 9074 7017
Prof. Dr. Maliah Sulaiman
and expertise consistent with global best Assoc. Prof. Dr. Romlah Jaffar Fax: +603-9074 7573, 9074 5226
practice in the accountancy profession for e-mail: bhs@bhsbookprint.com
Dato’ Abdul Rauf Rashid
the interest of stakeholders. Dato’ Gan Ah Tee
Dato’ Dr. Lukman Ibrahim
Tan Theng Hooi
Section 6 of the Accountants Act 1967 (the Mohd Zabidi Md Nor
Editorial Advisory Board
Act) states that the functions of the Institute Yeo Tek Ling Dato’ Mohammad Faiz Azmi
shall be: Dr. Veerinderjeet Singh Datuk Zaiton Mohd Hassan
• To determine the qualifications of persons Dr. Yacob Mustafa
Dato’ Merina Abu Tahir Editor
for admission as members;
Leong Wai Leng Dr. Nurmazilah Dato’ Mahzan
• To provide for the training and education; by Aznorashiq Mohamed Zin
the Institute or any other body, of persons Steven Chong Hou Nian Strategic Communication & Branding Team
practising or intending to practice the Huang Shze Jiun Iszudin Mohd Amin
profession of accountancy; K. Renganathan Thane Meyyappan
Lim Thiam Kee, Peter Subashini Selvaratnam
• To approve the MIA Qualifying Examination Lester Ming Teoh
Yap Seng Chong
(QE) and to regulate and supervise the Nurul Nadira Muhammad Shaharudin
Foong Mun Kong
conduct of that Examination; Ng Kean Kok
• To regulate the practice of the profession of Advertising Sales & Subscription
Salihin Abang Business Development Unit
accountancy in Malaysia; Dato’ Narendra Kumar Jasani email: bussdev@mia.org.my
• To promote, in any manner it thinks fit, the Wong Wye Pong, Brian
interest of the profession of accountancy in Writers
REGISTRAR Nazatul Izma
Malaysia;
Sudirman Masduki Majella Gomes
• To render pecuniary or other assistance to Abdul Razak Rahman
members or their dependents as it thinks fit CHIEF EXECUTIVE OFFICER
with a view to protecting or promoting the Dr. Nurmazilah Dato’ Mahzan
welfare of members; and
• Generally to do such acts as it thinks fit executive Directors MIA Regional Offices
for the purpose of achieving any of the G. Shanmugam – Strategy & Development
REGION CHAIRMAN
aforesaid objectives. Simon Tay Pit Eu – Professional Practices & Technical
Datin S K Yap - Membership & Operations Northern Region
Penang, Kedah &
Dato’ Haji Muhd Redzuan Abdullah – Surveillance & Perlis) Tham Shien Hong
Accountants Today is the official publication of the Malaysian Enforcement Tel: 04-261 3320 Fax: 04-261 3321
Institute of Accountants (MIA) and is distributed to all
members of the Institute. The views expressed in this Johor
Johor Bahru Murali Samy
magazine are not necessarily those of the MIA or its Council. publisher Tel: 07-227 0369 Fax: 07-222 0391
Contributions including letters to the Editor and comments on
Malaysian Institute of Accountants
articles appearing in the magazine are welcomed and should Dewan Akauntan Sarawak
be sent to the Editor as addressed below. All material without Unit 33-01, Level 33, Kuching Wong King Yu
prejudice appearing in Accountants Today are copyright and Tower A, The Vertical, Tel: 082-418 427 Fax: 082-417 427
cannot be reproduced in whole or in part without written Avenue 3, Bangsar South City,
permission from the Editor. No. 8, Jalan Kerinchi, Sabah
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Editor, Accountants Today, Dewan Akauntan, Email: mia@mia.org.my
Unit 33-01, Level 33, Tower A, The Vertical, Avenue 3, Web: www.mia.org.my
Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Facebook: www.facebook.com/miamainpage
Lumpur, Malaysia
Contents Nov 2016 - Feb 2017
06 EDITOR’s Note
07 President says
08 TRENDS TO NOTE
n Stewardship
10 powering the future
16 Yes, Minister
20 Unity through Sports
24 CFOs of the Future: Integrated
Thinkers
28 A Budget for Challenging
Times 10 60
n Gamechangers
32 Monetise Your Research n
80
Accountability
The Sky is the CFOs Limit 74
36 Enhanced Auditor Reporting
n technical
40 GST: Force for Future Growth 82 FINANCIAL REPORTING
DISCLOSURES
46 Managing GST Risks
86 Fair Value Issues Affecting FIs
50 Catch That Crook
90 Understanding the
54 the future of forensics Differences between MPSAS,
MFRS and MPERS
56 The enhanced Practice Review
Framework n BALANCE
94 Ms. Manners for the New
n engagement Millennium
60 Making the Most of Millennials
64 Financial Intelligence: the Key
to Success
68 NACRA 2016: PURSUING Contact us
EXCELLENCE IN CORPORATE
REPORTING A key element in the world of publishing Want to advertise?
is what readers have to say. We Please contact
70 Financing Bumiputera SMEs Hani or Zuriani at
want to hear from you on just about
anything that appears in each issue of +603 2722 9000 ext 154 &
74 Putting a Number on Talent 147
Accountants Today. Why not drop us a line
78 CFOs: Strategists in a VUCA now? e-mail: communications@mia.org.my
World
4 accountants today | Nov 2016 - Feb 2017
Accountants Today • Editor’s note
empowering change
2
017 is a very special year for MIA as it marks responsibility is going to be a constant thread in our content
our 50th anniversary and Golden Jubilee. As we as we champion good governance.
journey down the road of continuous and positive Another consistent theme in Accountants Today is our
change, we are spearheading significant reforms focus on innovation. You’re going to see more content on
and innovations in order to create powerful devel- technology, fintech, and data analytics et al, and how we can
opment and learning opportunities for our members. integrate these into our accounting methodologies. We have
But these opportunities will be wasted if members are to stay up to speed on innovation because it is impossible
unfamiliar with our initiatives. As such, it is important for to do 21st-century accounting and auditing of digital enter-
MIA to create awareness and communicate our strategies prises using 20th-century tools and mindsets. Economies,
and initiatives to members effectively. Accountants Today markets and businesses have gone digital, and so must the
is one of the primary channels in our communications and profession to reinvent our relevance and value. Discard
learning strategy, and I do hope that members invest some stultifying learned behaviours and acquire new inquisitive
time to read the content in order to understand MIA’s and learning behaviours! Luddites will languish, but the door of
the profession’s future direction. learning is always open.
In this special bumper issue, the Finally, you’ll see ample techni-
cover focuses on the restructuring of cal content in this issue and in future.
the accounting landscape which is being On top of enabling Although accountants are continually
steered by the government and regula- and strengthening being urged to enhance their soft skills,
tors collectively through the Committee the profession, this cannot be at the expense of funda-
to Strengthen the Accountancy Profession these reforms mental hard skills and technical skills.
(CSAP). It is essential that members Accountants are defined by their exper-
aim to enhance
understand the upcoming reforms in tise in the quantitative language of busi-
order to make the necessary behavioural
good governance ness and finance. This is the profession’s
and cultural shifts that will enable accoun- and collaborative differentiation and advantage. While
tants and the profession to become more mindsets. applications and software will be able
relevant and valuable in the future. I to crunch the numbers, we still need to
would also like to draw your attention know how to treat the numbers and what
to the President’s Message, where Dato’ Faiz summarises the numbers mean. We have to be able to interpret the num-
the key messages of the profession’s reforms and MIA’s bers and communicate their implications to our colleagues
responses. and stakeholders. In other words, accountants have to be
On top of enabling and strengthening the profession, excellent accountants before metamorphosing into holistic
these reforms aim to enhance good governance and collab- business leaders.
orative mindsets. Although auditors are commonly perceived The final vital message I’d like to share is that it’s never
as being assurance providers, I want to stress that the entire too late to learn and to improve ourselves. The history of the
profession is responsible for the quality of assurance and accountancy profession reinforces this maxim. While we are
governance. We are all together in this financial ecosystem a relatively young profession, we have weathered many trials
and as such, we must all uphold the accounting standards and tribulations; if we are resilient, determined and willing to
and abide by the codes of ethics and regulations which form think and act out of the box, 2017 can be a watershed year of
the basis of our profession and inspire public confidence. tremendous positive change.
We have to embrace this mindset of collective responsibil- We Cannot Learn Without Pain – Aristotle. n
ity, as we implement new global accounting and auditing
standards. Whether it’s new thinking on revenue recognition
or enhanced auditor reporting and key audit matters, all par- Happy Reading!
ties are responsible for quality and integrity – management,
Boards, auditors and accountants. This theme of collective
6 accountants today | Nov 2016 - Feb 2017
New Path for
a New Year
President says | Dato’ Mohammad Faiz Azmi
A new year always heralds new resolutions and it’s an opportune going forward.
window for change. MIA intends to ring in several changes concomitant Three, improving governance
with our priorities in 2017. and enforcement. Apart from
strengthening the MIA enforce-
ment team by bringing in fresh
One, structural and legislative reforms. MIA is ushering blood and working closely with other regulators and authori-
in changes which will create an enabling environment for ties like the Companies Commission and the Inland Revenue
the profession and business, as per the government’s CSAP Board, MIA is working on the new Accountants Act which
reforms. Specifically, in June 2016, the CSAP Implementation will strengthen powers to govern members and better
Committee was formed and was given the mandate to imple- protect public interest. We are also putting a great deal of
ment in full, the fifteen recommendations of CSAP. After emphasis on audit quality and integrity which affects the pro-
seeking views and feedback on how to operationalise the fession’s credibility and public trust. Apart from implement-
recommendations, we have issued the Operational Model to ing the enhanced auditor reporting rules, MIA will launch its
the relevant authorities at the end of last year. Next, we hope new practice review framework effective January 2017.
to amend the Accountants Act in 2017 to Four, embracing the digital economy.
pave the way forward. We are firmly in a digital world, with
Two, enhancing competency. Aside fintech, artificial intelligence, robotics,
We have to craft
from focusing on certifying professional Internet of things and big data gaining
digital strategies traction. Accountants must embrace digi-
accountants in public practice i.e. pub-
lic practitioners and auditors, MIA will
that make us more tal tools and platforms to become more
also continue to develop the quality and cost-efficient and efficient and innovative in delivering ser-
competency of professional accountants advanced and more vices to our clients. We have to craft
working in other strategic segments, in tune with trends digital strategies that make us more cost-
such as corporate and business, pub- like mobile and data efficient and advanced and more in tune
lic sector, insolvency, valuation, Islamic analytics. with trends like mobile and data analytics.
finance, and forensics, to name some. MIA is walking the digital talk. Last
MIA intends to set up “faculties” dedicated to developing year, we moved to our new headquarters in Bangsar South
these professionals. Recently, at the CFO Dialogue 2016, City, which is part of the MSC Malaysia Cybercentre. We are
I spoke about certifying professional CFOs of the future moving more of our content and training online and because
who are expected to assume the role of strategic partners, mobile is the way of the future, we launched our proprietary
and thus will need the relevant competencies, in areas app with more to come in 2017.
such as technical, strategy, operations, compliance, talent, And that’s not all. Appropriately, 2017 is not only MIA’s
leadership, and technology. To support them, MIA is devel- Year of Transformation but also our Annus Mirabilis or Year
oping a competency framework for CFOs. MIA has also of Wonders and our Golden Jubilee. To commemorate MIA’s
created linkages with bodies such as IPSAS (International 50th anniversary, we are planning major events throughout
Public Sector Accounting Standards Board) and CIPFA the year, culminating in a grand gala for all members. Details
(Chartered Institute of Public Finance and Accountancy) to will be announced at a later date. So let us truly make 2017 a
help Malaysian public sector accountants attain professional year to remember. n
qualifications. Other similar initiatives will be in the pipeline
Nov 2016 - Feb 2017 | accountants today 7
trends
Economic and political outlook in and around the world
to
note
+Insurtech
Trending in 2017
n Move over team up with the best
fintech, here InsurTech companies
comes insurtech.
as they emerge.
According to Murray Two, he expects
Raisbeck, Head of most investment to
Insurance Technology be channelled into
KPMG in the UK, KPMG’s three main strands
annual list of the top of technology;
100 FinTech companies blockchain, particularly
globally as of 2016 in commercial lines
Data Concerns showed that the and reinsurance;
for CFOs presence of insurance
start-ups almost
Artificial Intelligence
(AI) as firms increasingly
n CFOs are concerned that the increasing volume and doubled compared to utilise chat bots and
pace of data impacts their ability to provide meaningful 2015. virtual agents before
insights to Boards at speed with no errors, according to a Raisbeck singled out venturing further
report by EY Financial Accounting and Advisory Services (FAAS) three trends. One, into underwriting
which finds that 66% of respondents worldwide say this issue insurance firms will and claims; and the
is having a significant impact on the effectiveness of corporate be putting serious Internet of insurance
reporting, up from 57% in 2015. resource into their as the world becomes
How can reporting catch up with an ...66% of partnering capabilities increasingly connected.
accelerating world? An annual global respondents through 2017 so that
worldwide
survey of 1,000 CFOs or heads of say this issue they are ready to
reporting of large organisations with is having a
significant
revenue greater than USD500m across impact on the
25 countries, finds that the Americas, effectiveness
Asia-Pacific, Japan and the Middle of corporate
reporting, up
East all cite changes to technology as from 57% in 2015.
their number one external reporting
challenge. Dealing with these technological changes,
including cloud-based systems, data analytics, robotic process
automation (RPA) and artificial intelligence (AI), is also the
top issue for 35% of emerging markets respondents and the
number two issue for those in Europe.
8 accountants today | Nov 2016 - Feb 2017
2021
numbers
The year in which Gartner
Inc. research predicts that smart IASB’s Plan
machines will enter mainstream
n The International Accounting Standards Board
adoption, with 30 per cent adoption by
large companies. Technologies including (the Board), which sets IFRS Standards required in more than
cognitive computing, artificial intelligence 120 countries, recently revealed its conclusions from its 2016
(AI), intelligent automation, machine Agenda Consultation and its five-year work plan.
learning and deep learning fall under the
Listening to feedback from stakeholders, the Board confirmed
umbrella term for smart machines.
that a central theme for its activities until 2021 will be Better
Communication in financial statements. The Board aims
to improve the communication effectiveness of financial
statements by taking a fresh look at how financial information
is presented and grouped together. It will also continue to
enhance disclosures and–through the IFRS Taxonomy™–support
the use of electronic reporting.
IASB’s other focus areas for the
five-year period are completing to
note
54%
the percentage of European
large projects, supporting
implementation and focusing
on research. The Board expects
businesses which view Brexit
to finalise the new insurance
as a threat to the European
business community, according contracts Standard and the
to December 2016 research revision of the Conceptual
findings issued by RSM, the 6th Framework, both of which are
largest global audit, tax and
consulting network
expected to be issued in 2017.
Deloitte Brazil Sanctioned
n The Public Company sanctions against 12 former the first admissions the
Accounting Oversight partners and other audit PCAOB has obtained
Board (PCAOB) recently personnel of the firm, from a global network
announced that Brazil-based including certain firm leaders, firm.
Deloitte Touche Tohmatsu for violations including non- ”Deloitte Brazil failed in
Auditores Independentes cooperation with a PCAOB its public watchdog role
will pay an USD8 million inspection and subsequent to protect the interests
civil penalty, the largest ever investigation. A former of investors by issuing
imposed by the PCAOB, to engagement partner was also materially false audit reports,”
settle charges including charged with causing the firm said Claudius B. Modesti,
issuing materially false audit to issue materially false audit director of the PCAOB
reports and attempting to reports. Division of Enforcement and
cover up audit violations Deloitte Brazil admitted that Investigations. ”The orders
by improperly altering it violated quality control detail some of the most
documents and providing standards and failed to serious misconduct the
false testimony. cooperate with a PCAOB PCAOB has ever uncovered.”
The PCAOB also announced inspection and investigation,
Nov 2016 - Feb 2017 | accountants today 9
Stewardship
n by Amalina Anuar
The accountancy landscape is
primeD for disruption. Accountants
will have to press the reset button
on their skills and abilities to
capitalise on change.
powering
the future
MIA celebrates its 50th anniversary in 2017. mooted way back in 2012 when Putrajaya first
Apart from being a big party, this Golden approached the World Bank to produce the
Jubilee heralds sweeping reforms that will Report on the Observance of Standards and
reshape the accountancy profession’s landscape Codes (ROSC), which included an assessment
and strengthen the Institute and its members. on the strengths and weaknesses of the
So what major reforms can accountants accountancy profession in Malaysia.
expect going forward? Christopher Fabling, Senior Financial
It’s crucial to note that structural and Management Specialist at the World Bank
regulatory reforms are definitely on the table. Group, lauded Malaysia’s drive to ensure best
The reform process is hardly new, and was practice in issues like governance, market
L-R: Sudirman Masduki, Dato’ Haji Che Pee Samsudin, Datuk Johari Abdul Ghani,
Dato’ Mohammad Faiz Azmi, Datuk Zaiton Mohd Hassan and Dr. Nurmazilah Dato’ Mahzan
10 accountants today | Nov 2016 - Feb 2017powering the future
Reshape
...this Golden Jubilee
heralds sweeping reforms
that will reshape the
accountancy profession’s
landscape and strengthen
the Institute and its
members.
Nov 2016 - Feb 2017 | accountants today 11Stewardship
powering the future
L-R: YM Raja Azura Raja Mahayuddin, Uantchern Loh, Christopher Fabling, Nik Mohd. Hasyudeen Yusoff and
Dato’ Mohammad Faiz Azmi
integrity and transparency. “The degree profession.”
of collaboration between the profession The fate of the profession and the
and regulators and businesses here The accountancy country are intertwined, and the former
was markedly different to some other profession has must be capable of truly serving the
countries, and a prime example of a significant latter effectively. “For a profession
good practice,” noted Fabling at the role to play in to succeed, you must do two things
recent MIA International Accountants strengthening right. Number one is to ensure that
Conference (MIAC) 2016. “It’s not often the institutions accountants in Malaysia are competent
that we see a ROSC supporter have and and that this competency grows as
a resolve or response in a systematic the country progresses. Number two
architecture
manner the way Malaysia did.” is to fulfil its role in protecting public
Subsequent to the ROSC’s findings,
of a nation that interest,” said Nik.
Putrajaya created the Committee will improve One key CSAP recommendation was
to Strengthen the Accountancy people’s lives. to enhance the profession’s governance
Profession (CSAP) under the auspices structure to create an enabling
Datuk Johari Abdul Ghani
of the Ministry of Finance. Nik Mohd. environment for accountants and
Finance Minister II
Hasyudeen Yusoff, former executive improve enforcement, compliance and
chairman of the Audit Oversight Board, quality. This entails replacing the current
Securities Commission Malaysia and an Accountants Act and establishing a New
MIA past president, stressed CSAP’s Regulatory Board (NRB) as a super-
role in setting the stage for reforms in regulator which works in the best
the profession. “Basically, the CSAP was interests of the public and the nation.
designed to overcome all these vested Dato’ Mohammad Faiz Azmi, President
interests, by recommending measures of MIA said: “There has to be oversight,
that to a certain extent breaks the because we can’t afford to have CSAP
status quo,” said Nik during the MIAC reports every five years. So we need
discussion on the changing landscape to have a mechanism that essentially
of the profession. “That’s the only way makes MIA accountable to the national
forward, because the interest of the interest.” Though more power would
country supersedes the interest of any be concentrated in the NRB, Dato’ Faiz
sectorial group in the accountancy stressed that “there’s nothing stopping
12 accountants today | Nov 2016 - Feb 2017powering the future
the regulatory board from delegating or “that Malaysia create and maintain a first-
outsourcing its powers and some of those class education system for accountancy
powers could be delegated to MIA.” It is training in order to produce trained
imperative, accountancy graduates who are on par
Supporting Nation- that Malaysia with those from other leading countries.”
Building create and While MIA is a leading influencer in quality
maintain a accounting education, it is at the same time
Quality, capacity-building and championing professional certification.
first-class
upskilling are critical tenets of the CSAP Dato’ Faiz noted that MIA is creating
education
recommendations which aim to support competency frameworks to define the
economic development. Nur turing
system for characteristics and qualities of Malaysian
accountants with sustainable prospects will accountancy chartered accountants going forward, and
not only strengthen the profession but also training this will include specific frameworks for
nation-building. in order example for CFOs.
“The accountancy profession has a to produce Pivotal to building competency and
significant role to play in strengthening trained quality will be augmenting enforcement
the institutions and architecture of a nation accountancy through initiatives such as revamping
that will improve people’s lives,” stated graduates the current structure of practice review.
guest of honour Finance Minister II Datuk MIA will launch its new practice review
who are on
Johari Abdul Ghani, who commended framework effective 1 July 2017, signalling
par with
MIA and the profession for its ongoing its commitment to more effective policing
role in supporting sustainable economic
those from and regulation. Dato’ Faiz advised
development and social wellbeing in other leading members across the board to improve their
Malaysia. “In order to carry out this role countries. governance and accountability and think
fully, however, you need to continue to about their responsibility to upholding the
enhance confidence in the profession and public interest. “We are not just going to
to build trust.” regulate auditors from now on. We’re also
Credibility rests upon competency,
and requires lifelong quality education.
“It is imperative,” noted Datuk Johari,
Nov 2016 - Feb 2017 | accountants today 13Stewardship
powering the future
going to regulate CFOs, and going part of the equation, however. Going
forward under the new act, we hope to Whether forward, Azran noted the importance
give the NRB more powers to go after of “the willingness to innovate rapidly
technological,
the non-members,” to combat the rise and to move away from old methods,
in what he terms “bogus accountants”.
geopolitical, or tenacity and attention to detail, and an
socioeconomic, experimental mindset.”
Capitalise on these disruptions
Disruption; Think are redefining Think Global, Think
Sustainably our roles and Big
changing the way
Apart from regulator y and we work. In a borderless world, accountants
structural disruption, the accountancy must embrace global mindsets
profession also faces external threats, Dr. Nurmazilah Dato’ Mahzan and think about the bigger picture
like any other sector. Whether MIA CEO unfolding regionally and globally. For
technological, geopolitical, or example, the burgeoning ASEAN
socioeconomic, “these disruptions are Economic Community (AEC) will
redefining our roles and changing the facilitate increased cross-border
way we work,” noted MIA CEO Dr. integrated reporting approach will mobility and the mutual recognition
Nurmazilah Dato’ Mahzan during her help businesses and governments agreements (MRAs) on ser vices
MIAC welcoming remarks. demonstrate how they create value will provide ample opportunity for
As business partners, accountants over the short, medium and long- qualified professionals. “Hopefully,
must be able to understand and term,” he said in his keynote address. by 2017,” said Dr. Nurmazilah, “we
capitalise on these disruptions to Accountants must also be on board will allow MIA members to register
provide sound advisory and insights with digital disruption, ranging from as ASEAN CPAs, which will become
to business. Importantly, accountants cloud to data to analytics, blockchain, the passport for you to work in other
need to shed their purely historical fintech and cybersecurity. Azran ASEAN countries.”
mindset and think more strategically Osman Rani, Chief Executive Officer
and futuristically to add value and help of Iflix Malaysia urged accountants Be Adept and Adapt
businesses craft sustainable strategy to become data-driven. “With the
and make long-term gains. “Investors, proliferation of data available at our In a rapidly disrupting landscape,
businesspeople and markets do not fingertips, there’s a big mindset shift it is perhaps most important for future-
just want historical information, but from being hypothesis driven to oriented accountants to be agile and
they want predictive information and being data-driven… The pace and the non-conformist to consistently add
analyses that can help them in decision- rhythm are now a lot faster. One of value to a business. The propensity
making,” said Dato’ Faiz earlier in the big challenges is understanding for learning, curiosity, innovation, and
his speech. “While sustainability is the technology and applications so adaptability will be the profession’s
on many companies’ agendas, we that decisions can be made rapidly.” biggest assets. “Because the world
are typically very bad at explaining Advising accountants and businesses is so open and fast changing, we
how companies’ achievements can be to capitalise on the digital wave, Dr. accountants cannot afford to be siloed
tracked back to business strategy.” Nurmazilah said, “Organisations need or left behind. We have to continue to
This is where integrated reporting to plot where they are (on the bell be curious and be open to evolving
(IR) comes in. Datuk Johari lauded curve) in terms of policy, using, or our skills,” expounded Dato’ Faiz.
MIA’s efforts to spearhead (IR) and manipulating the technology. You do Neither will previous achievements
promote adoption of this holistic new not succumb to the technology, but and patterns dictate future prospects.
format of corporate disclosure. “By you need to harness it and be on top “Forget about what you’ve done in the
communicating all the factors that of technological change.” past and take charge of the future,”
can affect a business over time, an Being tech-savvy is only one said Nik. n
14 accountants today | Nov 2016 - Feb 2017Organised by:
Stewardship
n by nazatul izma
Yes,
Minister
Finance Minister II Datuk Johari Abdul
Ghani has come a long way from
auditor to the halls of executive
power. Notably, he’s leveraging
his ascension to advocate for
sustainable growth, innovative
professional development, and as an
urban kampong boy, the well-being of
KL’s disenfranchised.
It’s much easier to push a nation- Building the Nation and architecture of the nation, such
building agenda if you have the support and the World as ensuring an effective tax system
of a great network. And the Malaysian which collects the necessary revenue
accountancy profession enjoys an “There is no question that the to help government discharge
invaluable connection in the form of accountancy profession has a unique, its responsibility for social well-
recently appointed Minister of Finance critical and practical role to play in being and economic development.
II Datuk Johari Abdul Ghani. building stronger and more stable “The accountancy profession has a
As a fellow accountancy professional economies around the globe. According major role to play in supporting our
– he is professionally ACCA-qualified to a report by the International economic transformation, particularly
and an MIA member since 1991, many Federation of Accountants (IFAC), in enhancing the nation’s institutional
of Datuk Johari’s ideals are congruent the accountancy profession is strongly quality. In this context, the profession is
with MIA’s vision. As a person who is linked to national economic growth expected to drive forward transparency
committed to “national service” and and improved living standards, and it and accountability.”
“national duty”, as reported in the contributes USD575 billion annually to But to do this, the profession itself
press, Datuk Johari strongly supports the global economy.” must inspire and build trust, and cling
MIA’s own mission of nation-building According to Datuk Johari, the to its core values of integrity, objectivity,
and achieving sustainable economic accountancy profession is essential transparency, independence,
well-being. in strengthening the institutions accountability and good governance.
16 accountants today | Nov 2016 - Feb 2017Yes, Minister
“The bedrock of our commercial system is high Dance with
quality financial information: information based on Disruption
ethics and integrity, on high-quality international
accounting and auditing standards and on the Given the changing landscape
work and sound judgement of both internal and and the many disruptions facing
external accountants. Credible and reliable financial the profession, Datuk Johari urged
information is fundamental to investment. It builds accountants to “embrace innovation”
investor confidence which, in turn, facilitates in order to build and sustain its
business development, contributes to job growth and competitive advantage under a scenario
leads to economic prosperity for the nation.” of disruption. Today, accountants
Critical to prosperity is racial parity, or ensuring face myriad risks to the status quo
that all races in polyglot Malaysia have equal access especially from technology in the age
to a sustainable economic pie. MIA has identified of digital globalisation e.g. big data,
increased Bumiputera representation in the automation and job obsolescence,
profession as being essential, but greater numbers and fintech, insurtech and regtech.
must be supported by continually improving “The world is undergoing a period
competency. Quality cannot be sacrificed for quantity. of profound transformation driven
“Recognising the need for well-rounded talent for by global political, economic and
the profession, the government has established the technological shifts. Taken together
Malaysia Professional Accountancy Centre (MyPac) these forces suggest that the role and
to strengthen the capacity-building of the Bumiputera expectations of the accountant and
through academic and vocational education in line the industry they inhabit could be
with Malaysia’s vision to achieve high income status radically different from the profession
by 2020,” said Datuk Johari. today… Innovation is the key to long-
lasting competitive edge, whether we
are exploring changes to products,
ser vices, processes or business
models. If we do not want to be left
behind, we need to immerse ourselves
with innovation in a manner that is
Innovation holistic and sustainable… Rather
is the key to than looking at the digitalisation as
long-lasting an unwelcoming and disruptive force,
competitive the accountancy profession ought to
edge, whether embrace it as an opportunity to propel
the industry and ultimately, the nation
we are
to greater heights.”
exploring Datuk Johari also advised
changes to accountants to adopt digital strategies
products, in crafting their business models
services, for a new millennium. “Services
processes can now be provided through
or business online platforms. Taking advantage
models. of technology, accounting entities
and professional services firms can
develop new business models and
export professional services across
Nov 2016 - Feb 2017 | accountants today 17Stewardship
Yes, Minister
the region through digital platforms.” Doing this can help governments’ understanding of their fiscal position and
accountants capitalise on the new potentials opening up for prospects. It is also crucial for providing legislators, markets,
services in the ASEAN Economic Community (AEC). and citizens with the information they need to make efficient
policy decisions.”
Improving Public Sector “Moreover, we know that the rapid development of the
Finance and Governance private sector requires the support and facilitation of the
public sector. Flexible and relevant policy changes that
All sectors must play a role in economic development and are suited to change and rapid economic development are
public sector finance is no different. Here, accountants in the critical for private sector growth. This is where public sector
public sector play a critical role as watchdogs and executives. accountants can play a significant role by contributing ideas
“In the public sphere, the accountancy profession supports and making sure that spending is carried out in a systematic,
a public sector that is more transparent and accountable controlled manner while safeguarding the credibility of the
to its citizens. Effective financial reporting is critical to government’s delivery system.”
This is How We Do It
address and resolve urgent
community issues including
poverty, illegal squatter settlements,
Accountants today are told that they Director in companies involved in infrastructure, and commerce. In
can be anything they want, and that the food and beverage, agriculture particular, he’s extremely vocal
accounting is simply the launchpad to and manufacturing industries. about the need to provide affordable
fulfilling their dreams. He continues to serve on select homes for the middle and lower
If their path lies in politics and Boards and was appointed to the income groups in Kuala Lumpur.
public service, they’ve got an eminent Khazanah Nasional Berhad Board He also serves as the Chairman
role model in the form of Datuk Johari of Directors on 15 September 2016. of Yayasan Bena Nusa which was
Abdul Ghani, a recent addition to Despite his upward mobility, established to help reduce urban
the Malaysian cabinet. Prior to his Datuk Johari has not forgotten his poverty and improve education for
appointment as Minister of Finance II roots in the disadvantaged urban poor urban youth. In addition, he is
on 27 June 2016, he served as Deputy area of Kampung Pandan, Kuala also the Chairman of Jawatankuasa
Minister of Finance. Lumpur, where he was born and Pemakanan Negara at the Ministry
His portfolio is backed by raised since 1964. As the saying of Agriculture and Agro-based
decades of experience in accounting goes, you can take a boy out of Industry to help address food
and business. Upon completing his the village, but you can’t take the sufficiency and sustainability
Diploma in Accounting at Institut village out of the boy. He continues concerns. n
Teknologi MARA (now UiTM), to advocate for the urban poor and
he went on to become a qualified disenfranchised through politics
Chartered Accountant under the and social work.
Association of Chartered Certified Active in politics for more than
Accountants (ACCA). 24 years since 1988, Datuk Johari
Like other accountants, Datuk is the Acting Chief of UMNO’s
Johari took the time-tested route Division of Titiwangsa and Barisan
of launching his career in Big 4 Nasional Coordinating Chairman
audit, starting his career at Peat for the Titiwangsa parliamentary
Marwick & Co., now KPMG. Post- constituency. Among his early
practice, he went on to hold senior initiatives were to establish a
positions in several public-listed Community Service Centre in
companies and was Managing Titiwangsa in July 2010 to help
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n by Majella Gomes
Unity
through Sports
Nation-Building is a Team Effort.
What business have footballers got at an accounting event?
Plenty, it turns out. Accountants and business can draw multiple
lessons from sports – fortitude, resilience, teamwork, and zeal to
overcome and win. It’s “a different perspective of teambuilding
and unity,” said MIA President Dato’ Mohammad Faiz Azmi, in his
introductory remarks to Plenary Session 4 of the
MIA International Accountants Conference 2016,
featuring Harimau Malaya or the Malayan tigers.
They were a roaring success. As veteran
footballers Datuk Soh Chin Aun, Datuk Santokh
“We are the Singh, Datuk James Wong and Datuk Hassan
champions, Sani, together with session moderator and
my friends, ex-sports commentator and auteur Datuk Rahim
And we’ll keep Razali filed on stage, they received a thunderous
on fighting standing ovation.
Yet many don’t know that Malaysia qualified
’til the end.” for the 1972 Olympic Games in Munich for the
very first time, related Datuk Rahim. “For us
Freddie Mercury, – the fans, the spectators – Malaysian football
Queen culminated in the qualifier for the 1980 Moscow
Olympics. ”
In 1980, the United States had led a boycott of
the Summer Olympic Games in Moscow to protest
the late 1979 Soviet invasion of Afghanistan. In
total, 65 nations including Malaysia refused to
20 accountants today | Nov 2016 - Feb 2017Unity through Sports
participate in the games. Hence, Malaysia’s best football team
ever was denied the chance of Olympic glory.
Thirty-six years on, the disappointment of 1980 is far
behind them and their
passion, dedication and
determination have led
them down different
paths. Datuk Soh has The easy
started a football training camaraderie;
academy in Melaka; the
Datuk Santokh runs a unaffected
successful restaurant in – but still
a Petaling Jaya suburb; affectionate
and Datuk Wong and way they spoke
Datuk Hassan have been
about and
recently appointed as
coaches to the Sabah
cajoled each
state football team. As other; and
they spoke, it became their honesty
obvious what really in recounting
made them successful. trials and
The easy camaraderie; tribulations
the unaffected – but still – are the
affectionate way they qualities that
spoke about and cajoled maDe them
each other; and their
Malaysia’s
honesty in recounting
trials and tribulations – are
greatest
the qualities that made football team
them Malaysia’s greatest ever.
football team ever.
Smells like Team Spirit
Above all, team spirit drove them. They lived, ate, slept,
worked and trained as a team as they set their sights on
Moscow. “We were always tough on each other in training,
even to the extent of beating each other up, but when we
faced our opponents, we were a team,” emphasised Datuk
Santokh. “We knew our strengths and weaknesses, what
each of us could do, how the others would behave; we worked
together.” Datuk Hassan concurred. “When we were on the
field, every one of us was equal,” he said. “People still ask
me, don’t you wish it was you who scored the goal, instead of
passing it to James? But I always tell them, it doesn’t matter.
We were playing as a team. It didn’t matter who scored the
goal. When the ball went into the net – we ALL won!”
Nov 2016 - Feb 2017 | accountants today 21Stewardship
Unity through Sports
supporting talent
“I wanted to be an accountant in
school, but it never worked out,” divulged
Datuk Soh Chin Aun, a little mock-
mournfully. “But in retrospect, I suppose it
was because of a number of things. You
need to have access to good education
before you can become an accountant.
Similarly, without the proper facilities,
you cannot play football.” He conceded,
however, that it was relatively easier to
train for football, compared to prepping
for accountancy. This was helped by the
fact that “in those days, there was a field in
front of my house, and all the kids in the
neighbourhood congregated there.” There
was no net, or even goal posts; everybody
played with whatever they had, normally
marking out the “football field” with their and a museum but he pointed out sustains it is dedication, passion and
slippers – leading to many ball in/ball out that some things have not changed. determination. Talent abounds in this
disputes! While having the right facilities can go country, he stressed, and has become the
The field in front of his house has a long way to developing talent, what basis for the establishment of his football
since been replaced with a bird park training academy in Melaka, which he
runs primarily to provide an outlet for
talent and to identify future Malaysian
Heroes
footballers. Malaysia is unique in its
Honour your diversity, emphasised Datuk Soh. “What is
so important in this country, is that there
Datuk Hassan Sani, a Labuan native like Datuk Wong, wasn’t are so many ethnicities. We need to work
a footballer to begin with; he was a sprinter, but like all boys in together and constantly support each
the ‘hood, he was never averse to a game of football. “I used to other, to achieve our objectives.”
think, how hard could it be – you run, kick the ball, run again,” he
laughed. “But I liked being able to make goals, and you can’t do United and Unstoppable
that just by running! Then I met a coach who gave me a tryout – Datuk Santokh Singh was an urban
I didn’t even have shoes then! – and I realised I really, really wanted to play football.” cowboy. Growing up at a time when
But nothing prepared the young Hassan for the discipline of training. “I learned a Kuala Lumpur was struggling to break
lot from other players, first at state level, then with the national team,” he added. It free of its “colonial outpost” character, and
was an especially poignant moment when he took over the No. 10 jersey, formerly was nothing like the sprawling metropolis
worn by another Malaysian football great – Datuk Mokhtar Dahari who passed it is today, he had to help his family herd
away in 1991. cows in what was then one of the New
“I wanted to honour it,” he recalls. “It meant a lot to me that I had been entrusted Villages, established post-World War II, to
to wear it.” A head shorter than the other players, Hassan was nevertheless swift counter the then-growing Communist
and sure, scoring two goals before making the fateful pass to James. Having trained insurgency. “I grew up in Setapak, in Hot
Springs New Village, and there was a field
a long time together, he knew exactly where James would be, and how he would
in front of my house too!” he laughed,
react. “We were always a pair, we knew each other’s minds, and we always played
drawing parallels with Datuk Soh Chin
as a team,” he said. “I passed, he scored.” And the rest is history.
Aun’s early years. “I had big dreams
22 accountants today | Nov 2016 - Feb 2017Unity through Sports
that doesn’t mean we didn’t have disagreements,” he added quickly. “We
fought, punched and kicked each other in training, and if I was roughly
tackled, I’d hit back. We had our differences because we came from diverse
backgrounds. But all that disappeared once we were on the field and
playing for real.” Then, all differences were set aside, and they morphed
into Malaysia’s Dream Team, playing as one for the country, united and
unstoppable.
There’s No “I” in “We”
Like many little boys before him, Datuk James Wong would have played
on the field outside his house all day if he hadn’t been dragged home! Like
the others, Wong had a dream of someday playing for the country. But he
was handicapped by his perspective of himself. “Being from Labuan, a small
island off the coast of Sabah, I initially didn’t have the confidence to try but
when the opportunity came to train in Kuala Lumpur, I decided to go for it,”
he said. “The training was hard; we had to get used to each other and work
as a team. Sometimes Santokh (Datuk Santokh Singh) and I would beat
each other up during training!”
though,” he continued. “I wanted to be somebody He readily concedes that the team had a talented captain, and at the
by playing football, and that spurred me to play for end of the day, everyone shaped up, got their act together and focused
Selangor, and then for the national team.” on qualifying for the Olympics. There was pressure to qualify, of course,
That they were disciplined, dedicated and and nerves almost got the better of him several times but “Everyone was
determined as they worked their way to Olympic encouraging us,” he said, crediting fans and other supporters for rallying
glory, would be an understatement; they ate, drank, around with fervour rarely seen before (or since). “We were doing it for the
played, slept and dreamt football, he said, readily country, for a higher purpose, not just ourselves. That’s why, despite seeing
acknowledging that they became best friends because it on TV, and being congratulated for it, I always feel that I didn’t score the
of this shared passion for the beautiful game. “But winning goal; We did!”
to the Urology Cancer Trust Fund at
a cheque presentation ceremony on
15 December 2016. The Trust Fund
under the auspices of the Blue Cap
Movement under the University of
Malaya provides financial assistance
to patients unable to afford the costly
treatment for prostate cancer, the most
common urological cancer amongst
males in Malaysia.
FOOTBALL AUCTIONED IN AID OF UROLOGICAL CANCER MIA’s President Dato’ Mohammad
Faiz Azmi said the contribution is
Capping the MIA International Rahim Razali. MIA’s way of giving back to society.
Accountants Conference 2016, MIA The football went to the highest “The matching of the highest bid
organised a charity auction which saw bidder, MIA Past President, Abdul amount by MIA is a testament to
the auction of a football autographed Rahim Abdul Hamid, with MIA its commitment towards creating
by Datuk Soh Chin Aun, Datuk Santokh matching his bid to round up the total awareness among accountants and
Singh, Datuk James Wong and Datuk amount collected to RM25,000. finance professionals in the country to
Hassan Sani as well as auteur Datuk The funds raised were contributed embrace social responsibility.” n
Nov 2016 - Feb 2017 | accountants today 23Stewardship
n By Abdul Razak Rahman
CFOs of
the Future
Integrated Thinkers
In the age of digitalisation, CFOs have got to become
integrated thinkers and holistic visionaries and
shed the traditional mantle of gatekeeper, advised
Christopher Tiffin, Chief Special Projects – Payments
& ex-CFO of Celcom Axiata Berhad at the recent CFO
Dialogue 2016.
Exemplary CFOs can be oil prices, political shocks like Brexit legislation and statutory requirements,
distinguished from their middling peers and Trump’s triumph, the depreciation such as the Goods and Services Tax
by how they adapt to continuous change. of the ringgit by almost 40% against the (GST). “Celcom identified about 50
“It is not only about knowing the US dollar over the past four years, and systems that were impacted by GST
change but how we face and deal with subsidy removal which is impacting the which required significant monetary
the change,” said Christopher Tiffin, consumers. “As consumers’ spending investments as well as time and effort.
Chief Special Projects – Payments & power reduces, it will lead to stiffer On a positive note, it forces Celcom
ex-CFO of Celcom Axiata Berhad, when competition for market share. This to change their mindset in order to
discussing the core competencies of created a vortex of change that is facilitate the change in the regulatory
CFOs from a Malaysian perspective at outside the control of the CFOs, which requirement.”
the recent CFO Dialogue 2016. pushes the need for the CFOs to think Technology is another area which is
Some of these changes are external, differently in order to circumvent the evolving rapidly, growing exponentially
international and local macro factors impact.” and can give rise to rapid acceleration
that keep “rocking the boat”, such as Other factors are changes in and change. The industrial age which
24 accountants today | Nov 2016 - Feb 2017CFOs of the Future: Integrated Thinkers
Digitisation
Disruptors
Digitisation has paved the way
for change, liberalising business and
enabling models such as Uber and
Airbnb. “Business models will need to
be looked at differently. Where is the
intrinsic value of such business models
when the drivers are intangibles?”
Businesses must relook at their
models because digitisation has
changed consumer behaviour and the
dynamics of consumer demand. One,
with accessible information, consumers
will determine what, when and how
they want the information, shifting
from the traditional approach where
companies created products and
services and aggressively market them
to the consumers. Two, digitisation
will spur the shift from the physical to
the virtual environment, whereby the
processing of information takes place The evolution
in the virtual space. The transition to
smart offices, smart homes and virtual
in technology
reality will have socioeconomic impacts. can be described
Three, social media and forums are as a shift from
shaping public opinion. Whilst these abacus accounting
can be leveraged as a positive platform
for communication, they can also be
to a virtual
extremely destructive in distributing environment
negative information and fake news. where information
took 20-50 years to mature was succeeded Digitisation also creates complex is available at
by the computer age in the 60s which took risks which challenge CFOs.
only between 10 to 20 years to evolve. “Now “Addressing and managing risks have
one’s fingertips.
we are in a digital age where the technology evolved from the traditional approach Therefore,
is ‘leapfrogging’ each other. For instance, of physical security i.e. lock and keys to accessibility to
in the communication industry which addressing virtual risks such as cyber information is
has leapfrogged to 4G, people are already and virus attacks,” said Christopher.
talking about 6G whilst 5G is still around “How do CFOs evaluate the risks and
of paramount
the corner,” remarked Christopher. “The come up with the risk framework with importance.
evolution in technology can be described as regards to firewall, data storage, API
a shift from abacus accounting to a virtual (application programming interface)
environment where information is available integration and protect data integrity
at one’s fingertips. Therefore, accessibility and the leakage of data from an
to information is of paramount importance.” organisation?” Even though CFOs are
Nov 2016 - Feb 2017 | accountants today 25You can also read
