Development of Management Accounting

Question 1

Why the accounting profession participate in a standard setting.

The accounting profession participate in standard setting because they are more likely know the current accounting issues and understand about the issues. In that case, they can provide suggestion and recommend their ideas to the Board in standard setting. In addition, accounting profession are the person who involve actively with the standard as they are the one who will use this standard in their working environment, so their participation in standard setting can give advantage to them to review the standard and make it easier for them to adopt it. Accounting profession also provide technical expertise for high quality input in setting the standard such as their expertise on how they make an account for lease contract. Furthermore, accounting profession is the representative for the accountant in Malaysia and if they participate in standard setting, they can communicate well the information about the standard with the other accountants. Lastly, the accounting profession has responsible for review the accounting issues that they receive from others or receive divergent views in interpretation and they have to provide recommendation for decisions.

Question 2

Other than economics developments, briefly explain the factors that may influence the accounting development in Malaysia.

The first factor influence the accounting development is Information Technology (IT). Information technology make accounting process more easier compared the old system. Nowadays, many of the companies used accounting system to record all the transactions rather than they used a paper to record the transaction and it may increase their expenses. The second factor is culture which is professionalism. During the period of economic growth in Malaysia, degree of professionalism increased. Although there were regulatory requirements for measurement and disclosure of accounting information, the requirements...