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Ernst & Young launches financial statements guide

Public accounting firm Ernst & Young has launched a guidebook in Malaysia to assist companies and organisations in their preparation of financial statements that comply with applicable approved accounting standards in the country.

The guidebook is in the form of an annual report, but of a fictitious company Example Bhd, which includes illustrative sets of financial statements and directors' report. It also includes the interim financial statements.

The 2003 edition illustrates accounting measurement, recognition, presentation and disclosure requirements in respect of Malaysian Accounting Standards Board (MASB) standards, the Companies Act 1965, and the KLSE Listing Requirements.

Additional guidance is also found in the form of footnotes in small prints. Such guidance is only explanatory and not intended to be an integral part of the financial statements or the director's report.

Ernst & Young country managing partner See Huey Beng said the 2003 edition, which will be distributed to listed companies, incorporated the approved accounting standards applicable to companies for the 2003 financial year.

“We are aware that reporting entities have a need for such guidance, and are happy to do our part to assist the business community in its efforts to comply with these accounting requirements,” he told a press conference on April 29.

Ernst & Young Partner Sukanta Dutt said the section on illustrative interim financial statements was included to assist listed companies to make their quarterly announcements to the Kuala Lumpur Stock Exchange.

He said the new standards that apply to companies in their 2003 financial year should be reflected from their first quarter, rather than being booked only in the last quarter.

On reports that the Malaysian accounting standards are lagging behind global standards, See said such criticisms should recognise that even global accounting rules are in a state of change.

Ernst and Young offers a range of integrated services such as solutions in assurance and business advisory, tax and corporate finance services. It handles 34 per cent of the listed entities' accounts in Malaysia.

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