GASB to take a Fundamental look at Financial Statements

GASB will take a fundamental look at the reporting model for state and local government financial statements in an effort that aims to enhance the information available for decision-making and assessing a government’s accountability.

In adding a new project to its technical agenda Tuesday, GASB committed to examining a financial reporting model that was established in 1999 through Statement 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, and subsequent related pronouncements.

“The current model has been fully in effect for a decade,” GASB Chairman David Vaudt said in a news release. “It is an important part of effective standards setting to routinely seek to improve existing standards that have been in effect for some time.”

The board will consider concerns about the complexity of the current financial reporting model and the potential effects on the timeliness of financial reporting, Vaudt said.

The current structure of state and local government financial reporting was established in Statement No. 34, which set the foundation for the format and contents of the basic financial statements, certain related notes to the financial statements, and required supplementary information, including management’s discussion and analysis (MD&A).

One of the most significant additions to the reporting model that resulted from Statement No. 34 was the introduction of governmentwide financial statements including accrual information, which includes the reporting of infrastructure, other capital assets, and long-term liabilities.

GASB’s reexamination will take into account research GASB’s staff has conducted over the past two years with users, preparers, and auditors of governmental financial statements, who have shared views on how the financial reporting model is functioning.

Potential areas of improvement in the model include:

• MD&A: Options for enhancing the financial statement analysis section of MD&A will be explored. Guidance may be clarified for presenting currently known facts, decisions, or conditions expected to have a significant effect on financial position or results of operations.
• Governmentwide financial statements: Alternatives will be explored for the format of the statement of activities. GASB will assess whether the value of the information provided by a governmentwide statement of cash flows would outweigh the costs of providing that information.
• Major funds: GASB will explore options for providing additional information about debt service funds.
• Governmental fund financial statements: The board will explore a conceptually consistent measurement focus and basis of accounting and develop a related presentation format for governmental fund financial statements.
• Proprietary fund financial statements: Options will be explored for enhancing the consistency and usefulness of presenting operating and nonoperating revenues and expenses.
• Budgetary information: GASB will explore options for enhancing the consistency of the presentation method and the value of budgetary information.

GASB will look for opportunities to reduce the complexity of financial statements in each of these areas, which may improve the timeliness of reporting. Deliberations are scheduled to begin in October, and the board expects to issue an initial due process document by the end of 2016.

IASB to Propose Temporary Measures for Insurance Companies

The International Accounting Standards Board (IASB) will propose temporary measures to address concerns about issues insurance companies are facing with implementation of the new financial instruments standard.

IFRS 9, Financial Instruments, was issued in July 2014 and takes effect on Jan. 1, 2018. The IASB confirmed Wednesday that it will propose amending IFRS 4, Insurance Contracts, to give companies whose business model is to predominantly issue insurance contracts an option to defer the effective date of IFRS 9 until 2021.

The board also will propose giving insurers that implement IFRS 9 the option—which would be called the “overlay approach”—to remove from profit or loss some of the accounting mismatches and temporary volatility that could occur before the new insurance contracts standard is implemented. The IASB is deliberating on the insurance contracts standard, which is expected to be issued next year.

Later this year, the IASB will publish an exposure draft seeking public comment on these measures. Companies that do not issue insurance contracts would not be affected by these measures.

The Malaysian Institute of Certified Public Accountants (MICPA)

Background

The Malaysian Institute of Certified Public Accountants (MICPA) has been developing the accounting profession in Malaysia for over five decades by providing accounting graduates with an avenue to become a Certified Public Accountant (CPA). Since its establishment in 1958, MICPA has played a key role in the setting of accounting standards and technical advisory for the Malaysian regulatory bodies responsible for carving out the business and financial landscape of this nation.

MICPA has more than 3,200 members and over 500 registered candidates. Members of the Institute are professionally qualified “certified public accountants” bearing the CPA qualification.

The Institute is a founding member of the International Federation of Accountants (IFAC) and has contributed significantly to sustaining the accounting profession nationally, as well as globally. MICPA has demonstrated its dedication in protecting public interest by promoting convergence to international standards through participation in the IFAC Compliance Program.

In 2009, a Memorandum of Understanding (MoU) was signed between MICPA and the Institute of Chartered Accountants Australia (ICAA), sealing a new era of professional ties marking an important milestone for both bodies in their quest to work together to promote the interest of students, members and the accountancy profession. The MoU provides for mutual advanced entry for candidates into both of the accountancy bodies’ professional examinations.

In 2014, we saw the amalgamation between ICAA and the New Zealand Institute of Chartered Accountants (NZICA) which led to the establishment of Chartered Accountants Australia and New Zealand (CAANZ). Now, graduates of the MICPA-CAANZ Programme will obtain 2 professional qualifications – CPA (Malaysia) and CA (ANZ).

The depth of technical accounting knowledge and understanding of the Malaysian business environment has helped MICPA shape its core professional accountancy programme – the MICPA-CAANZ Programme, to suit business professionals practicing in Malaysia whilst increasing their accessibility to the accounting profession on international shores. The partnership between MICPA and CAANZ has widened the horizons of programme graduates in terms of international opportunities and access to resources such as the Global Accounting Alliance (GAA) which provides support from a network of professional accounting bodies in 11 different countries.

Brief history

On July 26, 1958, the Malayan Association of Certified Public Accountants was incorporated under the Companies Ordinances (1940 – 1946) as a self-regulatory accountancy body. Subsequently, the Association became The Malaysian Association of Certified Public Accountants (MACPA) on July 6, 1964, and was finally renamed The Malaysian Institute of Certified Public Accountants (MICPA) on January 29, 2002.

In 2009, MICPA signed a Memorandum of Understanding (MoU) with the Institute of Chartered Accountants Australia (ICAA), sealing a new era of professional ties promoting the interest of students, members and the accounting profession. The MoU provides for:

·         The delivery of a joint Professional Accounting Programme in Malaysia, granting graduates of the Programme with the eligibility to become members of both Institutes

·         Mutual recognition for members of both Institutes

·         Collaboration between Institutes in the organising of thought leadership events in Malaysia

A new development in 2014 saw the amalgamation of ICAA and the New Zealand Institute of Chartered Accountants (NZICA) which led to the establishment of Chartered Accountants Australia and New Zealand (CAANZ), a 100,000-strong membership of professionals. With the merger, graduates of the joint Programme will obtain 2 professional qualifications and be entitled to use the credentials CPA (Malaysia) and CA (ANZ) as members of both Institutes.

Objects of the institute

The Principal Objects of the Institute as set out in the Memorandum and Articles of Association are as follows:

·         To advance the theory and practice of accountancy in all its aspects.

·         To recruit, educate, train and assess by means of examination or otherwise a body of members skilled in these areas.

·         To preserve at all times the professional independence of accountants in whatever capacities they may be serving.

·         To maintain high standards of practice and professional conduct by all its members.

·         To do all such things as may advance the profession of accountancy in relation to public practice, industry, commerce, education and the public service.

Vision

To be the premier business qualification in Malaysia, comparable to the best in the world.

Mission

·         To enhance the value and distinctiveness of the Certified Public Accountant (CPA) qualification.

·         To promote high standards of professional conduct and technical competence of members to safeguard public interest.

·         To provide quality professional education and training thereby creating a competitive advantage for members.

Born without Limbs ----> Nick Vujicic

'Born without limbs' star inspires with courage and 'trust in God'

Australian-born Nick Vujicic was born without arms and legs, but that has not stopped him from leading a full life. Now, 32 and founder of the Los Angeles-based nonprofit Life Without Limbs and a motivational speaker, he gives hope to those born with disabilities. Married with a 2-year-old son, Vujicic is the subject of a short documentary, "Born Without Limbs,"to be aired by TLC on June 17. He shares his inspirational story with NBC's Susan Donaldson James.

I believe there's a reason why something happens. You do your best and trust in God and never give up. I grew up with this mindset and was thankful for what I had. Not only did my parents raise me in such a beautiful way, but they had the courage to have more children.

Mum was a midwife and she knew all about the birth process. But she had a premonition that something would go wrong in her pregnancy. She had all the ultrasounds, so it was a shock to everyone when I was born without arms and legs.

On the morning of my birth, Dad was beside her and could see my shoulder had no arm. He nearly fainted and vomited, and the nurse had to take him out of the room. I had phocemelia, no limbs, and there was no medical explanation. It wasn't genetic and it wasn't thalidomide. They said I would be a vegetable.

My mum said, "Take him away — I don't want to see him." But my dad comforted her and said, "He's beautiful." They took me home, but it took three to four months for my mother to come to terms with it.

I tried prosthetics at 6-years-old, but after months of trying, I had already learned to do many things without them and they limited my movements.

I was the first disabled person integrated into the Australian school system. I was bullied in school. My parents said ignore them, but I didn't want to be special. I just wanted arms and legs to and to be like everyone else.

Everyone is looking for something to make them happy — money drugs alcohol. I wanted to know I was not just a write off. Every time a kid laughed at me or excluded me from a game, that fear came back. My parents told me they would never give up on me. My home was my refuge.

When I was 10 years old I wanted to commit suicide. I felt I had no value, and I thought I would always be a burden to my parents and never get married. That was until I saw a boy with no arms and legs like me, and I knew I could help him.

As a teenager, I wanted to be as independent as I could be. My parents told me, "You don't know what you can achieve until you try it." I go swimming and fishing and do many things now like snowboarding and surfing. I can brush my teeth and wash my hair. In any situation, I do the best that I can. It's not what you have, but what you do with it. I am not afraid to try and fail.

I started motivational speaking around Australia when I was 19 and then traveled the world for five years. I had relatives in California and they encouraged me to come over: "Nick, you can make your dreams come true and reach the world." I started up Life Without Limbs, and we just celebrated our 10th anniversary.

I have traveled to 58 countries and 3 million miles — that's no exaggeration. We are thankful to speak to world leaders, but also to orphans and the disadvantaged and forgotten. I have a caregiver to travel with me.

Talking to youth is so much fun. They are forming a concrete direction in life, their values and purpose. I say living in a broken home is worse than not having limbs.

I want them to not be afraid. It's not about the outside. Who you are matters most. My dad said, "You are a gift, just differently packaged."

I did get married. My wife Kanae is Japanese-American and I met her in Texas. It was love at first sight. We were so thankful we met each other. It was slow, but we couldn't deny the chemistry.

Three months into our relationship in 2011, I went through a personal crisis. I wanted to start a couple of businesses and they failed. Then someone stole money from me. I asked my parents for money and didn't realize that at age 28, I would tap into my depression and fear about being a burden for the rest of my life. I lost it and was crying all the time.

I didn't think Kanae would stay. She said, "It's OK, I'm not going anywhere. I'll get a nursing job." That's when I knew she would be my wife.

Nine months later I gave her an engagement ring. One year after we were married Kiyoshi was born. He's my shoulder height now and we give high-fives and hugs and kisses every day.

Now, I have to learn to be independent again because my wife obviously has a handful with our son, Kiyoshi. I try the best I can to help my family.

Nick and Kanea with their 2-years-old Kiyoshi

My public speaking is a non-denominational message, based on my faith in Jesus Christ. We go to corporate settings and suicide-prevention and anti-bullying programs.

I tell people to not give up. We sometimes wait for a miracle to happen in life — but the miracle never comes. I wish many things were different in my life. But knowing I can be a miracle for someone else makes my life worth living.

We all have worries. I am not a superhero. But I embrace life and focus on what is most important.

Young New ACCA President!

NEW ACCA PRESIDENT PLEDGES TO INSPIRE YOUNG PEOPLE IN HER YEAR IN OFFICE 

Alexandra Chin is Malaysian to hold prestigious role The new President of ACCA (the Association of Chartered Certified Accountants) and the first Malaysian to be elected to the role, Alexandra Chin, has pledged to inspire young finance professionals during her year in office.

Alexandra, who holds the prestigious honorary title ‘Datuk’ in Malaysia, has been in public practice since 1981 and has her own practice in Sabah, Malaysia. She is the fourth woman to be elected ACCA President.

Alexandra qualified as an ACCA member in 1986 and she has been a member of ACCA’s Council since 2005. Before being elected to Council, Alexandra was an International Assembly Member representing Malaysia from 2003 to 2005. She was also President of ACCA Sabah from 1999 to 2005. 

Alexandra has been Chairman of ACCA’s Qualifications Committee and will chair ACCA’s Nominating Committee during her year as President. 

Besides ACCA, Alexandra, who is married to Datuk Peter Thien, has also been actively involved in various professional bodies and community organisations in Sabah. These include the Malaysian Institute of Accountants (Sabah Branch) and the Chartered Tax Institute of Malaysia (CTIM) Sabah Branch. She has served as a member of the Board of Trustees of Sabah Park and as a Board Member of Sabah Sports Board. 

Alexandra is a Board member of the Sabah Tourism Board. She was appointed a Justice of the Peace in 2009 and is also a member of the Commonwealth Magistrates’ and Judges Association. 

Following her election, Alexandra Chin said: 'My main aim for my Presidential year is to inspire younger people in the way that ACCA has inspired me.

'As the first Malaysian and only the fourth female President of ACCA I also want to focus on diversity, particularly in relation to open access and opportunities for thousands of people around the world.

'Having worked in practice since 1986, and having had my own accounting practice in Sabah since 2006, I am also very interested in small and medium sized enterprises (SMEs) and the issues which affect them. SMEs are critical since they form the backbone of all the world’s economies, and finance professionals have a huge role to play in supporting and advising them.' 

ACCA’s new Deputy President is Brian McEnery, a partner in BDO Ireland and a specialist in corporate restructuring and healthcare consulting, while Leo Lee, a former director of Hong Kong’s Securities and Futures Commission (SFC), has become global Vice President