FINANCIAL REPORTING (AMENDMENT) ACT 2012

This Act is deemed to have come into operation on 1 January 2012.

Amendment of section 2

in the definition of “approved accounting standards”—

in paragraph (a), by substituting for the words

“paragraph 7(1)(a)” the words “paragraph 7(1A)(a)”;

and

Act A1427

FINANCIAL REPORTING (AMENDMENT) ACT 2012

by inserting after the definition of “approved accounting standards” the following definition—

‘ “Audit Oversight Board” means the Audit Oversight

Board established under section 31C of the Securities

Commission Act 1993 [Act 498];’; and

in the definition of “issues bulletin”, by substituting for the words “subsection 7(1)” the words

“subsection 7(1A)”.

Substitution of section 4

to oversee the carrying out of the functions of the

Board under section 7; and

to perform any other function as the Minister may prescribe by order published in the Gazette.

Without limiting the generality of functions of the

Foundation in subsection (1), the Foundation shall be responsible—

The Foundation shall not, by virtue of or in connection with any of its power under subsections (1) and (2), direct the Board to undertake or omit to undertake any particular project or activity or otherwise affect the exercise of the

Board’s power or the performance of the Board’s functions under this Act.”.

Amendment of section 5

by inserting after paragraph (1)(c) the following paragraph:

“(ca) the Chairman of the Audit Oversight Board or his representative;”;

in paragraph (1)(e), by substituting for the words “the

Executive Chairman of the Kuala Lumpur Stock Exchange”

the words “the Chief Executive Officer of Bursa Malaysia

Berhad”; and

by substituting for paragraph (1)(h) the following paragraph:

“(h) four other members who possess knowledge and experience in matters of financial accounting and in one or more of the following fields:

accountancy;

by substituting for subsection (1) the following subsection:

“(1) There is established a body by the name of the “Malaysian Accounting Standards Board” as the standard-setting body of the Foundation whose functions shall be the determination and issuance of accounting standards for the preparation of financial statements, which are required to be prepared or lodged under any law administered by the Securities Commission, the Central Bank or the Registrar of Companies.”;

by inserting after subsection (1) the following subsection:

“(1A) Without limiting the generality of functions of the Board in subsection (1), the Board shall be responsible—

to issue new accounting standards as approved accounting standards;

to review, revise or adopt as approved accounting standards, existing accounting standards;

to amend, substitute, suspend, defer, withdraw or revoke any approved accounting standards in whole or in part;

to issue, approve, review, revise, amend, substitute, suspend, defer, withdraw or revoke any issues bulletin in whole or in part;

to issue, approve, review, revise, amend, substitute, suspend, defer, withdraw or revoke any statement of principles, any technical and other releases and any other document relating to financial reporting by whatever name called in whole or in part;

to sponsor or undertake development of possible accounting standards;

Financial Reporting (Amendment)

to collaborate with other national and international accounting standard-setters and monitor the development of other national and international accounting standards;

to participate in and contribute to the development of a single set of accounting standards for international use;

to conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards;

to develop a conceptual framework for the purpose of evaluating proposed accounting standards;

to make such changes to the form and content of proposed accounting standards as it considers necessary;

to monitor the operation of approved accounting standards to assess their continued relevance and their effectiveness; and

to perform any other function conferred or imposed upon it by this Act or such other function as the Minister may prescribe by order published in the Gazette.”;

by substituting for subsection (2) the following subsection:

“(2) The Board shall, in relation to its functions under paragraph (1A)(a), (b), (c), (d), (e), (j) or (k), seek the views of the Foundation.”; and

in subsection (3), by substituting for the words “subsection

” the words “subsection (1A)”.

Substitution of section 26D

Subsection (1) shall be applied by the following authorities: