Establishment of the Foundation
There is hereby established a body corporate by the name of the “Financial Reporting Foundation” with perpetual succession and a common seal, which may sue and be sued in its name and, subject to and for the purposes of this Act, may enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Foundation upon such terms as it deems fit.
Functions of the Foundation
(1) The functions of the Foundation shall be—
(a) to provide its views to the Board on any matter which the Board seeks to undertake or implement in relation to the Board’s functions under section 7;
(b) to review the performance of the Board;
(c) to be responsible for all financing arrangements for the operations of the Board, including approving the budget of the Board; and
(d) to perform such other function as the Minister may prescribe by order published in the Gazette.
(2) The Foundation shall not, by virtue of or in connection with its power of approval over the budget of the Board under subsection
(1), 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.
Members of the Foundation
(1) The Foundation shall consist of the following members who shall be appointed by the Minister:
(a) the Secretary General of the Treasury or his representative;
(b) the Governor of the Central Bank or his representative;
(c) the Chairman of the Securities Commission or his representative;
(d) the Registrar of Companies or his representative;
(e) the Executive Chairman of the Kuala Lumpur Stock Exchange or his representative;
(f) the President of the Malaysian Institute of Accountants or his representative who shall be a council member of the Malaysian Institute of Accountants;
(g) the Chairman of the Board;
(h) twelve other members of whom—
(i) five shall be principal officers of public listed companies;
(ii) four shall be public accountants each of whom shall be a partner with not less than ten years of experience in an accounting firm;
(iii) one shall be an advocate and solicitor who is a partner with not less than ten years of experience in a legal firm; and
(iv) two other persons with the relevant experience and background.
(2) The Minister shall appoint a Chairman of the Foundation from amongst the persons referred to in subsection (1).
Meetings of the Foundation
(1) Nine members of the Foundation shall form the quorum at all meetings of the Foundation.
(2) The Chairman of the Foundation shall preside over all meetings of the Foundation.
(3) If the Chairman of the Foundation is absent from any meeting of the Foundation, the members present at the meeting of the Foundation shall elect one of the members specified in paragraphs 5(1)(a) to (f) present to preside over the meeting.
(4) Any member of the Foundation may take part in a meeting of the Foundation using teleconferencing or videoconferencing or other electronic means.
(5) A member of the Foundation who takes part in a meeting of the Foundation using teleconferencing or videoconferencing or other electronic means is deemed to have attended the meeting.
(6) Subject to subsections (2), (3), (4) and (5), the Foundation may determine the conduct of its proceedings.
Establishment and functions of the Board
(1) There is hereby established a body by the name of the “Malaysian Accounting Standards Board” whose functions shall be—
(a) to issue new accounting standards as approved accounting standards;
(b) to review, revise or adopt as approved accounting standards existing accounting standards;
(ba) to amend, substitute for, suspend, defer, withdraw or revoke any approved accounting standards in whole or in part;
(c) to issued, approve, review, revise, amend, substitute for, suspend, defer, withdraw or revoke any issues bulletin in whole or in part;
(ca) to issue, approve, review, revise, amend, substitute for, 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;
(d) to sponsor or undertake development of possible accounting standards;
(e) to conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards;
(f) to develop a conceptual framework for the purpose of evaluating proposed accounting standards;
(g) to make such changes to the form and content of proposed accounting standards as it considers necessary; and
(h) 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.
(2) The Board shall, in relation to its functions under paragraph (1)(a), (b), (ba), (c), (ca) or (g), seek the views of the Foundation.
(3) Approved accounting standards issued or adopted under subsection (1) may be expressed to apply in relation to—
(a) any published accounts of a commercial, industrial or business enterprise in Malaysia and of overseas subsidiaries and associated corporations where those accounts are to be incorporated in consolidated accounts in Malaysia; and
(b) accounting periods or interim accounting periods;
and may—
(aa) have general or specific application;
(bb) differ according to differences in time or circumstance.
(4) (Deleted by Act A1233).
Members of the Board
(1) Subject to subsection (2), the Board shall consist of the following members who shall be appointed by the Minister:
(a) a Chairman;
(b) the Accountant General; and
(c) six other members who possess knowledge and experience in matters of financial accounting and reporting and in one or more of the following fields:
(i) accountancy;
(ii) law;
(iii) business;
(iv) finance.
(2) At least five of the members appointed under subsection (1) shall be members of the Malaysian Institute of Accountants.
(3) The Minister may appoint three advisors to the Board to represent—
(a) the Securities Commission;
(b) the Central Bank of Malaysia; and
(c) the Registrar of Companies.
(4) The advisors to be appointed under subsection (3) shall be appointed from amongst persons who possess knowledge and experience in the field of accountancy, law, business or finance.
(5) An advisor appointed under subsection (3) shall, unless he sooner resigns or his appointment is sooner revoked, hold office for such term as the Minister may determine.
Meetings of the Board
(1) The Board shall meet as often as may be necessary for the performance of its functions.
(2) Six members of the Board shall form the quorum at all meetings of the Board.
(2A) Any member of the Board may take part in a meeting of the Board using teleconferencing or videoconferencing or other electronic means.
(2B ) Any member of the Board who takes part in a meeting of the Board using teleconferencing or videoconferencing or other electronic means is deemed to have attended the meeting.
(3) The advisors to the Board shall have the right to attend meetings of the Board but shall not have a right to vote.
(4) A question arising at any meeting of the Board shall be determined by not less than six votes of the members present and voting.
(5) Subject to subsections (2), (2A), (2 B), (3), (4) and (6), the Board shall have power to determine the conduct of its proceedings.
(6) The Board may invite any person to attend any meeting or deliberation of the Board for the purpose of obtaining views on any matter under discussion, but any person so attending shall have no right to vote at the meeting or deliberation.
Disqualification
Any person—
(a) who is of unsound mind or is otherwise incapable of performing his duties;
(b) who has been convicted and sentenced to imprisonment for a term of not less than one year;
(c) who has been convicted of an offence involving fraud, dishonesty, or moral turpitude; or
(d) who is a bankrupt,
shall be disqualified from being appointed as a member of the Foundation or the Board, or if he is a member of the Foundation or the Board shall cease to be such a member.
Remuneration
Members of the Foundation and the Board and advisors to the Board shall not be entitled to any remuneration but may be paid such honorarium and travelling and subsistence allowances as the Minister may determine.
Term of office
Subject to sections 10, 13 and 14, a member of the Foundation or the Board other than an ex officio member shall hold office for a term not exceeding three years and shall be eligible for reappointment for one successive term only.
Resignation and revocation of appointment
(1) A member of the Foundation or the Board may at any time resign his office by written notice addressed to—
(a) the Minister, in the case of the Chairman; or
(b) the Chairman, in the case of any other member.
(2) The Minister may at any time revoke, without assigning any reason therefor, the appointment of a member of the Foundation or the Board if he thinks it is expedient to do so.
Vacation of office
(1) A member of the Foundation or the Board ceases to hold office upon his death.
(2) A member of the Foundation or the Board shall be deemed to have vacated his office upon his failure to attend three consecutive meetings of the Foundation or the Board without leave of—
(a) the Minister, in the case of the Chairman; or
(b) the Chairman, in the case of any other member.
Minister’s directions
(1) The Minister may give to the Foundation or the Board directions of a general nature which are consistent with the provisions of this Act as to the performance of the functions and exercise of the powers of the Foundation or the Board and the Foundation or the Board, as the case may be, shall give effect to those directions.
(2) The Foundation and the Board shall furnish the Minister with such information relating to their activities as he may, from time to time, require.
Other powers and duties of the Foundation and Board
The Foundation and the Board shall have such powers and shall perform such duties as are conferred or imposed by this Act.
Engagement of chief executive officer and other persons
(1) The Foundation may, either generally or in any particular matter, engage, on such terms and conditions of engagement as the Foundation may determine from time to time, any person to render such assistance as the Foundation or the Board may require or specify in connection with the performance of the functions of the Foundation or the Board, as the case may be, under this Act.
(2) The Foundation shall, on the recommendation of the Board, appoint a chief executive officer whose functions and duties shall include assisting the Board in the day to day administration of the Board and in the performance of its functions under this Act.
Employment of officers and servants
(1) The Foundation may from time to time employ persons who shall be paid such remuneration and allowances and shall hold their employment on such other terms and conditions as the Foundation may determine.
(2) The Foundation may make arrangements for the payment to its officers and servants, including a chief executive officer, appointed under subsection 17(2), and their dependants of such retirement benefits, gratuities or other allowances as the Foundation may determine.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
