Build firm resilience with predictive intelligence

 

If 2020 has taught us anything, it’s that the future is full of unexpected surprises. But what if you could predict the future? Although there are still many unknowns, predictive intelligence can help you build resilience by proactively identifying how tax legislation or regulatory changes could affect your clients. Advanced technologies, like CCH iQ Client Match can help firms provide enhanced client service and deliver business insights that help streamline tax season and discover additional revenue streams.

Provide year-round superior client service

If you want clients to view you as advisors rather than just accountants, you need to anticipate their needs before they even ask you for help. Because if you don’t, you could lose their business. Up to 72% of small businesses have changed accounting firms because the firm wasn’t proactive about addressing tax law changes. With predictive intelligence, your firm can offer updates all year long on how regulatory changes might affect them, so clients can take action today.

Create an efficient tax season

With growing financial advisory services, your firm is keeping in touch with clients all year long, delivering important business insights proactively. But did you know that predictive intelligence also can save critical time during your busy season? With CCH iQ Client Match your firm can streamline the tax prep and review process by identifying which legislative changes could affect each client. This gives you a heads up for areas of the tax return that may require a bit of extra attention.

Discover new revenue sources

You can use the power of predictive intelligence to flip your firm’s mix of business from primarily commoditised compliance services to a higher percentage of lucrative advisory services. Position your firm as a trusted partner and open up additional revenue streams.

 

Financial Accounting and Reporting in Malaysia, Volume 2 – 7th Edition is here!

Financial Accounting and Reporting in Malaysia, Volume 2 – 7th Edition is now available for purchase!

This 7th edition comprises new, revised and expanded content from the previous edition, including the new and amended Malaysian Financial Reporting Standards (MFRSs) issued after 31 December 2017. A new chapter on corporate social responsibility reporting, integrated reporting and sustainability reporting has been included in this edition.

Financial Accounting and Reporting in Malaysia explains clearly the Conceptual Framework used in the preparation of financial statements for entities, including groups of companies, and how to analyse and interpret those financial statements. With a clear emphasis on local practices, accounting principles are discussed in detail to guide users on the preparation and presentation of financial statements to ensure compliance with the latest accounting pronouncements. Where applicable, comparisons are also made with statutory requirements and guidelines issued by the Securities Commission and the Central Bank of Malaysia.

About the Author: Tan Liong Tong is a respected and experienced author on financial reporting practices. He has served in various working committees of the Malaysian professional accountancy bodies, including as a Council member of the Malaysian Institute of Certified Public Accountants (MICPA), a member of its Accounting and Auditing Technical Committee and a member of the Accounting & Auditing Standards Committee of the Malaysian Institute of Accountants (MIA).

To order, existing customers can contact your regular Account Manager. New customers can visit our online store.

How Wolters Kluwer Tax & Accounting in Asia Pacific is delivering impact beyond COVID-19

By Izzy Silva
Managing Director
Wolters Kluwer APAC

Wolters Kluwer has served professionals in AsiaPacific for over four decades, helping them enhance workflows and make informed decisions. Our expert solutions – a combination of deep domain knowledge with advanced technology and services – deliver better outcomes, analytics, and improved productivity and help solve complex problems for our customers. We are grateful and appreciative of recognition we have received for supporting customers and helping them realise their potential and deliver impact when it matters the most. 

One of the significant benefits of being part of a global organisation, with a 183-year legacy and portfolio representing thousands of customers worldwide (including 93% of the Fortune 500 companies), is having the ability to respond during a crisis. We are also grounded in our values  ̶  focus on the customer, make it better, aim high and deliver, and win as a team  ̶  which has helped us stay focused even during these challenging times.

We walk the talk

The Three Standards: Revenue, Financial Instruments and Leases

Recently, we saw a trio of standards come into effect – MFRS 15 Revenue from Contracts with Customers and MFRS 9 Financial Instruments on 1 January 2018, and MFRS 16 Leases on 1 January 2019. Companies have undoubtedly gone through a tremendous amount of work and change to implement those three standards – changes to the business and reporting models, processes and systems, pricing strategies, compensation, etc.

MFRS 15 Revenue from Contracts with Customers

The new MFRS 15 set out a new model of revenue accounting. The core principle is that an entity recognises revenue to reflect the transfer of goods or services in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services.

There were practical issues to consider during the implementation. For example, for a contract to exist under MFRS 15, it must fulfill five criteria as follows:

• Parties to the contract have approved the contract.
• Each party's rights can be identified.
• Payment terms can be identified.
• The contract has commercial substance.
• It is probable that the entity will collect consideration it is entitled to in exchange for the goods and services.

Contracts would have needed to be reviewed to ensure important information such as payment terms are included and that they are clearly worded to make the identification of the contract’s commercial substance and each parties’ rights easier.

MFRS 9 Financial Instruments

The new MFRS 9 replaced earlier versions of MFRS 9 and introduced a host of improvements which includes a classification and measurement model, a single forward-looking “expected loss” impairment model and a substantially-reformed approach to hedge accounting.

Malaysian Business Reporting System

In 2018, the Companies Commission of Malaysia (SSM) introduced the Malaysian Business Reporting System (MBRS). It allows for the submission of:

• Annual Return (AR)

• Financial Statements and Report (FS), and

• Exemption Applications (EA) related to the FS and AR.

The MBRS is a digital submission platform based on the eXtensible Business Reporting Language (XBRL) format. XBRL is by definition, an open international standard for digital business reporting. Foreign regulators, SEC (in USA), HMRC (in UK), ACRA (in Singapore) and CIPC (in South Africa), have mandated registered or publicly listed companies to report their financial information in XBRL. SSM is one of the latest adopters.

Its primary aim is to improve financial and business reporting and simplify ways for stakeholders to use, share, analyse and add value to data. SSM, in its FAQs, states that its reasons for XBRL adoption includes making the collection of financial and non-financial information more efficient, facilitating the analysis of financial reports for decision making and providing  SSM and other regulators with detailed data which can be aggregated, as well as aiding investigative efforts and other compliance.

MBRS is made of three main components:

• SSM Taxonomy - dictionary of financial and non-financial reporting element of AR, FS and EA embedded in the MBRS Preparation Tool. The taxonomy for FS and AR has been established based on the disclosure requirements for MFRS, MPERS and Companies Act 2016.

• MBRS Preparation Tool - preparation tools based on Microsoft Excel that allow companies to prepare documents online and offline and generated AR, FS and EA in XBRL.

• MBRS Portal - submission platform to lodge FS, AR and EA to SSM.

All companies which follow MFRS and MPERS, except for companies that are regulated by the Bank Negara Malaysia, can file their financial statements via MBRS.

The key measures include ensuring that the XBRL tagging is done correctly during the implementation stage and ironing out any compatibility issues as early as possible.

Wolters Kluwer’s An Overview of the Malaysian Business Reporting System (MBRS) and eXtensible Business Reporting Language (XBRL) workshop aims to provide participants with an understanding of the following:

• The scope and requirements under the MBRS

• How to use the platform to file and submit the FS, AR and EA, and

• How to effectively use XBRL.

MPERS check in

MPERS (based on IFRS for SMES) was designed to apply to entities that do not have public accountability. Malaysian Accounting Standards Board (MASB) adopted the MPERS framework of in February 2014 and it came into effect for private entities for financial period beginning on or after 1 January 2016.

The implementation period for MPERS could be considered as a juggling act. There were plenty of other things going around during the period of 2014 onwards – MPERS, GST, the Companies Act 2016, or the ever evolving direct tax environment – putting a strain on SMEs’ resources. This had led to SMEs prioritising – GST compliance, MPERS transition, finance cost management or just staying afloat in a challenging economic environment.

THE FUTURE OF AUDIT IS ASSURANCE

But the basics still apply

The phrase that gets bandied around all the time these days where auditing is concerned is “value-add”. In this case, your audit services must add more value to the customer. It’s why you now have items such as Key Audit Matters, why you now place emphasis on Other Information, why you now have Sustainability Reporting. It’s not just management letters these days.

Traditional audit is dead, long live audit.

That’s not to say that everything changes. The objective of an audit remains the same as defined under International Standards on Auditing ISA 200, as do the ethical principles governing an auditor’s professional responsibilities, and the core skillset an auditor should have still needs to be utilised.

Using a good example, in the Malaysia context, one could argue that the audit lapses with regards to 1Malaysia Development Bhd (1MDB) center around the use of that same core skillset, those same ethical principles. This is the case regardless of the fact that the nature of audit isn’t really designed to identify fraud.

However, it is widely acknowledged that today’s audit process continues to evolve. Technology advancements and changes in the information needs of financial statement users has meant that audit methodology and output must also adapt and an auditor’s skills must expand beyond what they ‘traditionally’ spend time doing.

Will accounting for consolidated financial statements get any easier?

Post-implementation reviews of the consolidation package of standards begins this year

Seven years ago, in May 2011, the International Accounting Standards Board (IASB) released a whole package of international financial reporting standards (IFRSs) to update the accounting rules regarding consolidation matters and other related topics. These were:

•         IFRS 10 Consolidated Financial Statements
•          IFRS 11 Joint Arrangements
•          IFRS 12 Disclosures of Interests in Other Entities.

At the same time, in line with the new standards, the following standards were revised: IAS 27 Separate Financial Statements, and IAS 28 Investments in Associates and Joint Ventures.

Suffice to say that the release and implementation of these Standards were not without dispute and controversy. Among the issues that have been raised are:

Audit Documentation Now More Important Than Ever

Below are insights from the newly released Audit and Assurance - Principles and Practices in Singapore 2018 (4th Edition).

The introduction of Key Audit Matters (KAMs) in 2016 has resulted in a huge leap in the importance of audit documentation. Writing up KAMs is not a straightforward process, and requires the auditors and those charged with governance to work together closely. One of the best ways to ensure that the documentation is of high quality is by starting work on KAMs early on.

Are Malaysian companies being too laid back with MFRS 15?

I’ve been attending a few seminars recently in Malaysia on various current issues, such as the new Companies Act 2016, the Finance Act 2017 as well as transfer pricing developments. I was able to touch base with a few fellow delegates and we talked in general about the challenges facing their companies in this day and age. One topic that somehow kept being brought up was the implementation of MFRS 15 Revenue from Contracts with Customers.

I was rather astonished that most of their respective companies had not even started planning for it, despite the fact that we are now only nine months away. If you remember, MFRS 15 was originally slated to come into effect on 1 January 2017 before it got pushed back to 1 January 2018. Why was it pushed back? The International Accounting Standards Board acknowledged the complexity of the revenue standard and to allow more time for companies to properly implement it. Yet here we are, at the end of the first quarter of 2017, and many have still not started.

A Practical Guide to Financial Reporting Standards, Singapore (6th Edition) launching soon!

The long anticipated 6th edition of the WK A Practical Guide to Financial Reporting Standards, Singapore will be available for purchase on 13 December 2016!

A Practical Guide to Financial Reporting Standards, Singapore is a comprehensive guide to accounting standards in Singapore.

This 6th Edition covers all the Financial Reporting Standards (FRSs) and Interpretations of Financial Reporting Standards (INT FRS) issued by the Accounting Standards Council that are effective as at 1 January 2017. Also included are the three major FRSs that are effective on:

Our buzzing SOY Books Promotion

If you haven't heard of our 2017 SOY Books Promotion yet, well don't worry, you still have time. We started on the 17th of October 2016 and we've been motoring along nicely. But what's SOY, you ask? Right, let me give you a bit of background.

SOY stands for start of year. In this instance, our campaign involves Wolters Kluwer books that are expected to be out in the first quarter of 2017. Well, for the first time, we're giving you a chance to pre-order these books early, rather than wait for 2017 to send in your order! AND, since we believe that the end of the year should have a feel good touch to it, we'll throw in a couple of extras! Interested? Read on!

Are you maximising the use of your Intelliconnect resources?

While we at Wolters Kluwer are obviously happy when you agree to purchase one of our high quality online subscriptions (whether it's for tax, GST, accounting or human resources), we would be even more happier if you make full use of all the features that we've developed to help you in your work!

As such, I'd just like to take a short while to remind you of a few of the many features that Intelliconnect has which you should take full advantage of:

Meeting your CPE requirements in Singapore

As we approach the last quarter of the year, most of you professionals out there will be checking to make sure you are on track to satisfy all your professional requirements for the year or three-year period. We hope that you haven't waited too long though to start tracking your CPE hours. If you suddenly find you are still a long way towards fulfilling those requirements, the end of the year could start looking very near indeed!

Each of you would belong to a different association, and each association would have different requirements. It could get quite tricky, so here's a summary (click to enlarge):

Revenue Recognition - Preparing for IFRS 15

Less than one and a half years from today, on 1 January 2018, the new IFRS 15 Revenue from Contracts with Customers will come into effect in both Malaysia and Singapore as MFRS 15 and FRS 115 respectively. It may seem quite far away, yet the stark reality is that all companies will need to begin implementation work now.  By starting early, companies will have a higher chance of avoiding costly errors and delays caused by haphazard last-minute implementation.

For most entities, IFRS 15 will impact the measurement, recognition and disclosure of revenue — one of the most important financial performance indicators used by investors and analysts. It is imperative that an entity can transition successfully and as smoothly as possible to the new standard. Early communication to stakeholders and advanced planning will be critical to avoid uncertainty.

Predictive Intelligence - A New Era

In today's business environment of intense competition, every professional accounting firm is always angling for an advantage over rival firms. If you're one of the top personnel of such a firm, that means you're always on the lookout for new business opportunities.

For every external event that pops up, whether it's new tax legislation, new guidelines on financial reporting standards, the results of a court case, or new listed company requirements, you'll want to see how you can make use of these events to find opportunities to serve both existing and potential clients.

Such a process could take ages, because, let's face it, every customer is different. You'd have to go through your client database to determine whether any of them are impacted from these latest developments and decide how best you can help your client. It's a time-consuming task.

Credit: aboutmodafinil.com 

Wouldn't it be great if there was a way that you could simplify that decision-making? Where you could have a system that could match those events to the customers impacted from the events and help narrow down those options?

New Website. Not Just a Makeover.

Our newly redesigned website has a clean uncluttered design, enhanced content and improved search functionality to allow you connect better with us online.
 

Key features of the website include:

• Interactive & Mobile-Friendly – We want to encourage more use of the online platform to deliver efficient, friendly and responsive service to you. With our interactive website you can reach us and access information and services easily and quickly on any mobile device.
• Integrated – From software solutions to online subscription services to authoritative and accurate content, you will find it a breeze to browse through our offerings and what you need.
• User-Friendly eStore – We present a new online store so that you can purchase books, ebooks and make bookings for our popular seminars and workshops easily.

Visit us at:
Malaysia l  www.wolterskluwer.com.my    
Singapore  l  www.wolterskluwer.com.sg

Spotlight on - Tan Liong Tong

Those of you in the Malaysian accounting world no doubt know of Professor Tan Liong Tong. Whether it's his reference books or his technical seminars, Professor Tan has dedicated a significant portion of his life to imparting accounting knowledge to students and working professionals alike.

He has been involved in many of our recent accounting-related publications here in Malaysia, and his books are constantly in high demand. Not only does he covers standards as a whole, such as the Malaysian Financial Reporting Standards and the Malaysian Private Entities Reporting Standard, he also zeroes in on specific complex topics such as financial instruments and deferred taxation.


At the same time, he is one of our key speakers for accounting related events, covering many topics from implementing new standards and adapting to the latest changes in existing standards.

Interested in writing for Wolters Kluwer?

Are you passionate about your work and love what you do, to the extent that you wish to pass on your knowledge to others? Are you interested in writing extensive commentary and discussion on tax, accounting or legal matters, to be read and relied on by thousands in the community?

If you are, why not talk to us at Wolters Kluwer? We are constantly on the lookout for experts who can not only bring depth to our existing content, but also to address other potential areas which our customers are looking for help on. Whether its through our sales personnel, or to our company representatives at our events, let us know! If we can establish a market for your proposed content, we will help to make it happen.

CCH Integrator, your solution for compliance and reporting!

In this era of rapid evolution, businesses need to continuously adapt to changing circumstances to stay relevant. Trends that are hot today may be stone cold tomorrow. At the same time, compliance and reporting requirements continue to increase as the need for transparency becomes more important than ever. How does an organisation keep up? 

That's where Wolters Kluwer comes in. If you're a company that has multiple layers of businesses that report to a wide range of jurisdictions, we have the solution for you.