Prof Ferdinand Gul addressing symposium delegates.

Global financial developments came under scrutiny at the two-day Journal of Contemporary Accounting and Economics Joint Symposium 2012, held at Monash University Sunway campus.

The symposium was jointly organised by the School of Business of Monash University Sunway campus, Universiti Utara Malaysia (UUM), the Hong Kong Polytechnic University, and the Journal of Contemporary Accounting and Economics (JCAE).

A total of 140 delegates from the United States, Hong Kong, Australia, Canada and Malaysia, among other countries, attended the event, held from January 6 to 7.

Secretary-General of the Ministry of International Trade and Industry, Y Bhg Datuk Dr Rebecca Fatima Sta Maria delivered the keynote address.

The JCAE is a bi-annual publication dedicated to publishing high quality manuscripts that rigorously apply economics and legal theory to accounting/auditing with an emphasis on empirical research.

The joint symposium focussed on financial issues in the Asia Pacific region, Monash University Sunway campus’ Professor of Accounting and Corporate Governance at the School of Business, Professor Ferdinand A Gul, said.

“This included a discussion on the International Financial Reporting Standards, or IFRS, that Malaysia is to implement in 2012,” he said.

Prof Gul explained that the IFRS was a set of international accounting standards which stated how particular types of transactions and other events should be reported in financial statements.

 Datuk Dr Rebecca Fatima Sta Maria delivering her keynote address.

School of Business Lecturer Dr Shanthy Rachagan fielding a question.

In particular, the question of “fair value accounting” permitted under sections of IFRS has raised some concerns, he added.

Under IFRS 9, for example, there are new guidelines for some items such as property plant and equipment impairment. These may cause volatility and uncertainty in earnings, and this is what the joint symposium will seek to explore in one of its sessions,” he said.

UUM Deputy Vice Chancellor (Academic and International) Prof Rosna Awang Hashim, in her welcome address, presented a snapshot of the Malaysian capital market.

To implement the IFRS, Prof Gul elaborated, would be a challenge to Malaysian businesses.

“Implementing the IFRS goes well beyond a simple technical exercise for the finance or accounting function. Other business areas such as the human resources, investor relations, business development and IT departments will need to be involved in the IFRS conversion plan.”

Observers, he added, have found that companies may not be fully ready to implement the IFRS, hence the joint symposium examined how to implement the IFRS smoothly.

“Since managers have more discretion under “fair value accounting”, corporate governance becomes important in ensuring that discretion is used to communicate reliable financial infromation,” said Prof Gul.

Prof Rosna Awang Hashim said that the symposium's theme was relevant and currrent.

“Today, Malaysia’s equity market capitalisation stands at 165% of the Gross Domestic Product while the bond market stands at 97% of GDP, making it the third largest bond market in Asia. Malaysia also has the largest number of listed companies in the Association of Southeast Asian Nations or ASEAN,” she said.

On the symposium’s theme, Pushing Capital Markets Research Frontiers, Prof Rosna said it was appropriately chosen for its relevancy and currency.

“I am positive that all these interesting developments have provided and will continue to provide important research opportunities for international and local researchers who are assembled here today to conduct cutting edge capital market research on Malaysia,” she said.