ARE YOU READY FOR 1ST SEPTEMBER 2018??

Come join us at the SALIHIN SST Seminar: SST Reborn! Transition from GST to SST.

LIMITED to 200 participants ONLY!! GRAB YOUR SEAT NOW!!!

EVENT DETAILS

WHAT TO EXPECT?

• Session 1: Tax Policy Changes; Good Riddance GST, Hello Again SST. - with Mr Salihin Abang, President, Malaysian Institute of Accountants (MIA)


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  Session 2: Transitional Preparation- GST Post Implementation Compliance. - with YBhg Dato' Ahmad Maher Abd Jalil, GST Director, The Royal Malaysian Customs Department (RMCD)

  
  


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  Session 3: Snapshots of SST Implementation- Its Changes and Impact to Business. - with YBhg Dato Sri Subromaniam Tholasy, Director General of The Royal Malaysian Customs Department and 2 other panelists.

  
  

>> CLICK FOR SEMINAR TENTATIVE <<

For any queries, please do not hesitate to contact:

Kosyala/Halina at 603-61859970/ Careline 1300 88 5678 or email to salihingst@salihin.com.my



#SALIHINGST

#SALIHIN

#SALIHINMalaysia

#SALIHINInternationalLLP

.

www.salihin.com.my

www.salihinpremier.com

Pihak pengurusan firma dengan kerjasama SRC akan mengadakan SALIHIN FIT RUN'17 seperti butiran yang berikut:-

Tarikh: 18 November 2017

Hari : Sabtu

Tempat : Taman Botani (KBG), FRIM Kepong

KUALA LUMPUR, Aug 25 (Bernama) -- The Malaysian Institute of Accountants (MIA) has appointed Salihin Abang as President and Datuk Narendra Kumar Jasani as Vice-President, effective today.



"Salihin Abang succeeded Datuk Mohammad Faiz Azmi, whose term ended on July 26, 2017, while Narendra succeeded Datuk Zaiton Mohd Hassan, whose term ended on July 15, 2017," said MIA in a statement today.



Salihin, who is the Founder and Managing Partner of SALIHIN, was elected as MIA Council member on Sept 19, 2015.



He is also the president of the Malaysian Accounting Firms Association, a member of the Association of Malay Chartered Accountants Firms committee, a member of Malaysian Association of Tax Accountants, a fellow member of Chartered Tax Institute of Malaysia and an associate member of Certified Practicing Accountant (Australia).

Salihin received his Bachelor of Accounting from International Islamic University Malaysia in 1997 and obtained his Masters of Science in Accounting from the same university in 2008.

Source : http://www.bernama.com/bernama/v8/newsindex.php?id=1385525

If we take a cut in income tax, it could also have an effect on the supply side of the economy.

• Lower income tax rates may encourage people to work longer. Overtime is more worthwhile if you get to keep more of your income. This is the substitution effect – work is more attractive with lower tax rates.


• However, there is also the income effect. With lower tax rates (and effectively higher wages), it is easier to get your target income by working fewer hours. Therefore, tax cuts may not increase labour supply because people don’t need to work more, if work is more highly paid.

There is much debate about the extent to which tax cuts increase productivity and economic growth. If marginal tax rates are very high e.g. 80%, cutting tax rates is likely to have some increase in labour supply and productivity. But, with tax rates of 20 or 30%, cutting income tax rates is no guarantee of increasing productivity and growth.

Source:

http://www.economicshelp.org/blog/13566/economics/the-effect-of-tax-cuts/

Kerajaan tidak gagal dalam menangani kejatuhan nilai ringgit bahkan lebih bijak serta berhemah dan memahami erti sebenar tentang penyusutan nilai ringgit ini apabila kejadian sebegini berlaku di setiap 10 atau 20 tahun sekali.

Apabila nilai ringgit jatuh secara mendadak maka kerajaan mungkin akan menyekat beberapa aktiviti berat seperti pembelian barangan dari negara asing dan dari luar negara untuk mengekang sedikit prasarana asing supaya dapat membuat sejumlah pembelian berkos tinggi secara perlahan dan berhemah sehingga nilai ringgit kembali pulih.

Kerajaan tidak berhasrat untuk menyangga nilai ringgit walaupun perangkaan menunjukkan jelas bahawa ringgit mulai menyusut secara drastik ke paras yang kritikal atau ke paras terendah kerana inilah waktunya yang dapat memberi sedikit peluang bagi pengurup wang negara atau mereka yang berurus niaga hadapan wang dapat meraih keuntungan.

Para pelancong asing terutamanya yang datang dari negara-negara Eropah dan negara-negara di blok barat dapat menikmati pertukaran wang mereka yang lebih baik apabila mereka datang untuk melancong ke Malaysia.

Begitu juga kepada penduduk dalam negara sendiri dapat menikmati keuntungan yang berlipat ganda dari hasil perniagaan matawang bersama negara-negara jiran seperti Thailand, Indonesia yang sememangnya boleh menjadikan satu tarikan terhadap ekonomi apabila mereka melancong ke negara tersebut dengan dapatan penambahan dari nilaian Rupiah atau Bath yang jauh lebih menguntungkan apabila berlakunya penyusutan nilai matawang tersebut.

Sewaktu berlakunya era penyusutan nilai ringgit ini penulis lebih kepada memberi cadangan kepada kerajaan Malaysia supaya dapat mengandakan untuk lagi usaha untuk membina 'satu empayar pelancongan negara' ke tahap yang lebih tinggi ertinya kerajaan Malaysia perlu membuat berbagai 'promosi pelancongan ' yang hebat terhadap seluruh warga Barat dan Eropah untuk datang melawat Malaysia sebagai 'Tahun Melawat Malaysia sepanjang Tahun ' .

Apabila berlakunya penyusutan nilai ringgit sebegini maka 'promosi pelancongan Eropah ' menjadi satu agenda tahunan negara untuk memperkenalkan secara drastik promosi sebagai ' Malaysia Indah ' di mata dunia dan sekali gus menarik pelancong untuk datang ke Malaysia.

Pelancong dari Eropah tentu tertarik dari pakej tawaran yang kerajaan berikan dan akan bertambah gembira apabila pertukarn wang mereka lebih menguntungkan apabila mereka datang ke Malaysia.Sebagai contoh satu pinggan nasi lemak berharga 5 ringgit Malaysia namun bagi pelancong yang datang dari 'Great Britain mereka akan berkata ' wow! Ini nasi lemak cuma 1 URO, oh! very cheap!'.

Begitu juga sesakali bagi rakyat Malaysia yang pergi melancong ke Bali Indonesia dan harga makanan di sana amat murah berbanding dengan tukaran wang ringgit Malaysia.Sebab pernah berlaku di suatu ketika nilaian pertukaran ringgit berbanding dengan nilai rupiah mencecah sehingga 5000 kali ganda .Contohnya 200 ringgit Malaysia bersamaan dengan satu juta rupiah Indonesia.

Sebenarnya berlakunya penyusutan nilai ringgit ini adalah juga sebagai satu ' Rahmat ' bukanya satu bentuk. ' Alamat Kiamat' terhadap ekonomi di sesebuah negara.

Oleh itu belajarlah dengan erti 'kesabaran' .Seluruh para pemimpin negara perlu bersikap positif terhadap apa yang berlaku untuk berdepan dengan unjuran dari penyusutan nilai ringgit ini ke arah satu bentuk pendekatan yang lebih realistik dan boleh membawa kepada sesuatu yang lebih menguntungkan.

Bagi seluruh badan perusahaan dan perniaga besar , natijah dari keadaan penyusutan nilai ringgit ini mungkin akan membawa sedikit kerugian namun kerugian ini bersifat sementara bahkan akan dapat sesuatu yang lebih menguntungkan secara keadaah yang dapat mengatasi permasalaan dengan membuat suatu 'post mortem ' semula dengan suatu cara perniagaan yang akan mendapat lebihan keuntungan mungkin yang berlipat kali ganda dalam jangka masa pendek atau panjang apabila keadaan nilai ringgit kembali stabil.

Bersediakah anda untuk cabaran ekonomi 2017 ? 

kredit : Cabaran ekonomi 2017

Big four, Audit Quality and Corporate failure

Achieving a high standard of audit quality builds trust and confidence in the audit profession

The quality of audit engagement has been a great concern among various stakeholders in recent past. Regulators, standard setters, profession bodies have been putting in place difference frameworks from one time to the other in ensuring the achievement of audit quality. For instance, ISQC1 has gone through difference updates and IAASB has issued various international standards on auditing to ensuring the quality of audit. With all these efforts, the global economy is still not immune from number of spectacular business failure, the recent be Carillion, a global construction company.

The stories of WorldCom and Enron and their auditor, Arthur Andersen (2001) is still very fresh in our memory; we are still in shocked from Refco and Grant Thornton LLP (2005); Northern Rock and PwC (2008); Parmalat and Grant Thornton and Deloitte Touche Tohmatsu (2004) relationship.

Specifically, Parmalat, the Italian food and dairy company, sued its two former auditing firms, saying that they should have detected the fraud that caused the collapse of Parmalat earlier this year. The company contended that two partners of Grant Thornton's Italian arm were involved in the fraud, and that Deloitte Touche Tohmatsu failed to follow proper auditing procedures that would have uncovered the fraud far earlier than it was found.

Looking at all these celebrated corporate failures, it could be concluded that most of auditors are big four. Could we then conclude that big four synonymous to corporate failure? Disturbed by the trend of the events, the quality of service by the so call big four has been put into question. Thus, political office holder such as parliamentarians have renewed the calls for an overhaul of the audit industry in their jurisdictions. Also, some concerned authorities have lunched enquiries into role of big four in domination of audit services. For instance, the competition authority in Britain launched an investigation into whether the dominance of the big four accountancy firms is driving down auditing standards due recent collapsed of Carillion.

The oligopoly nature of big four has been equally be questioned as KPMG chair calls Big Four an ‘oligopoly’ after Carillion collapse just as British MPs have demanded the UK's big four accountancy firms be referred to competition authorities for potential break-up following the collapse of government contractor Carillion, calling them a "cosy club incapable of providing the degree of independent challenge needed"

The recommendation by members of two powerful parliamentary committees was contained in a damning 100-page report on Carillion's failure, which also accused the government, regulators and Carillion board members of failing in their responsibilities, often because they acted "entirely in line with their own personal incentives.

The joint selects committee’s claims of auditor failings in its report on the collapse of Carillion marks a ‘watershed’ for the accountancy profession according to the head of the ICAEW, with the Big Four firms also acknowledging that the statutory audit market needs reform. Although Deloitte was Carillion's sole internal auditor, all three of the other big four did work for the group, with KPMG serving as external auditor, EY providing turn round advice and PwC advising the company, its pension schemes and the government.

The report called on the government to refer KPMG, EY, PwC and Deloitte to the Competition and Markets Authority for potential break-up, or splitting the firms' audit functions from non-audit services. Meanwhile, KPMG is already under investigation by the UK's accountancy regulator for its role. The above left us with question: can the world of accountancy ever produce quality audit and free corporate failure with the dominance of big four?

Written by: A. Mutalib, PhD, ACCA

Technical Director (Audit and Assurance)

Salihin International LLP

22/10/2018

Sustainability: Why does it matter?

The dynamism of business environment has resulted in challenges along social, environmental, ethical, and economic atmospheres. Specifically, World Economic Forum reported in 2016 that about 60% of global risks profile of major business organisations emanated from environmental and societal issues such as energy prices and availability, supply chain reach and resilience, regulation, and public sentiment.

No immunity

No business organization is immune to these systemic challenges and societal responses. Changing these threats to opportunities is possible through sustainability reporting as this would ensure the continual improvement of business operations that guarantee long-term resource availability through environmental, socially sensitive, and transparent performance.

Sustainability is about developing solid, all-inclusive growth based on a foundation of economic, social, and environmental commitment

• Social (e.g. religious and ethnic diversity, community, employee rights)


• Economic (e.g. shareholder and stakeholder value, corporate governance)


• Environmental (e.g. emissions, water, energy)

"Development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Sustainability service offerings

At SALIHIN, we aspire to leverage our deep expertise in sustainability reporting to bring significant insights that are most valuable to your business.

Our competences and capabilities

Expertise and thought leadership

• Our Sustainability practitioners are recognised expertise in the industry with requisite experience in assurance, reporting, carbon, energy management, risk, supply chain, and strategy.

External engagement and collaboration

• SALIHIN demonstrate her commitment to Sustainability through active participation in various initiatives with various national regulatory authorities and professional association like Bursa Malaysia Securities, MIA, MAFA, ACCA, and CPA Australia.

Credentials

• SALIHIN has extensive technical expertise and experience in both Advisory and Assurance delivering engagements across our portfolio of Sustainability offerings.

Inter-functional synergies

• SALIHIN has dynamic model that enables leveraging of synergies across our functions of risk advisory services, tax, audit, IT consulting, Sharia and financial advisory services to bring most value to clients

Tools and methodologies

• SALIHIN possesses dynamic set of methodologies and tools that are deployed to deliver successful outcomes on client projects.

Speak To Us Today!

Risk within an enterprise can come from various sources. By implementing an enterprise risk management (ERM) framework, organization can reduce the likelihood of unexpected disruptive business events in their environment.  By focusing resources on critical areas of your operations, we at SALIHIN will help you to identify control deficiencies and other threats to your business goals and remediate the problems. 

Risk Management Process		Our offering covers:
		Organizational risk tolerance and risk management objectives Organizational governance and control structures Risk management policy and procedures Audit risk management programs Best practices to resource-constrained public entities Trading and hedging strategies Selecting & implementing risk information systems Best practice risk gap analysis Risk modeling Real options modeling Decision analysis modeling Custom analytics Hedge and portfolio optimization Trader coaching Corporate training

The economy is facing a new value paradigm. These changes, however, are not reflected in the way we measure or report value. Traditional corporate reporting models have failed to adapt to an uncertain economy and account for the increase in intangible assets. Traditional metrics for measuring value and economic progress no longer provide a complete picture.

Responding to these challenges, through integrated reporting (IR) in which financial statements serve as concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term, become paramount.

An integrated report benefits all stakeholders interested in an organization’s ability to create value over time, including employees, customers, suppliers, business partners, local communities, legislators, regulators and policy-makers.

So, where do you begin?

To begin with companies need to generate relevant and reliable financial and non-financial information with an objective way of measuring their progress towards more integrated reporting and integrate the business activities with value creation processes.

Important questions...

• Would I invest in my company or choose to work for it based on what is presented externally?


• Is the market value of my company a fair reflection of the business?


• Are we telling a consistent story to all of our stakeholders? 

How can SALIHIN be of help?

As Malaysian firms have been slow to adopt integrated reporting, Salihin consulting aspires to leverage our great expertise in integrated reporting to bring significant insights that are most valuable to your business.

Services offering

Our specialists can help you at each step of your integrated reporting journey. Specifically, we can service in all the six areas of integrated as follows:

Speak to us today

The sphere of economy has been characterised by capitalism where the soul aim of business is“business”.

The feature of this phase of economy as be the of use of labour has machinery, little or no consideration for immediate environment as business believe that the only responsibility it has is to pay taxes and government is responsible with the “rest”.  Hence, the financial reports are prepared based on a set of guidelines and rules (GAAP) to showcase the financial performance and return to the owners.

	Growing by the understanding that corporate organisations are responsible to wide range of stakeholders, especially the general public, the concept of sustainability was coined.  As defined by the World Commission on Environment and Development (1992), it is “a development that meets the needs of the present without compromising the ability of future generations to meet their own needs."  In essence sustainable development is about five key principles: quality of life; fairness and equity; participation and partnership; care for our environment and respect for ecological constraints - recognising there are 'environmental limits'; and thought for the future and the precautionary principle".
Sustainability was basically built on three pillars namely economic, social and environments.

Environmental Sustainability Ecological integrity is maintained, all of earth’s environmental systems are kept in balance while natural resources within them are consumed by humans at a rate where they are able to replenish themselves.
Economic Sustainability Human communities across the globe are able to maintain their independence and have access to the resources that they require, financial and other, to meet their needs. Economic systems are intact and activities are available to everyone, such as secure sources of livelihood.

Universal human rights and basic necessities are attainable by all people, who have access to enough resources in order to keep their families and communities healthy and secure. Healthy communities have just leaders who ensure personal, labour and cultural rights		are respected and all people are protected from discrimination. The concept was well accepted by the organisations from global north and south, especially the ethical once. It cut across all the disciplines such as engineering, economic, finance, human resource, and accounting
“We cannot just add sustainable development to our current list of things to do but must learn to integrate the concepts into everything that we do." [i]

From accounting point of view, the incorporation of sustainable effort of corporate entities in the financial statements is the main concern. In order to achieve this, a new format of account, sustainability report, was developed. A sustainability report is a report published by a company or organization about the economic, environmental and social impacts caused by its everyday activities. A sustainability report also presents the organization's values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global economy.
Sustainability reporting is a systematic presentation of financial and non-financial data in order to compare the present with past and progress concerning the predetermined yardsticks. While financial information is majorly drawn on the firm’s financial accounting system in line the enabling financial reporting standards and framework, non-financial information means that it is not presented in monetary terms and is not based on an accounting standard. Though, non-financial information can be both quantitative, such as tons (or units) of greenhouse gas, or qualitative, such as governance processes, the reputation of an organization or the organization’s impact on the state of biodiversity.
“The importance of sustainability now goes far beyond environmental issues, as the need to behave responsibly becomes a key aspect of strategy and operations.” [ii]
As a result, for sustainability to be measurable and reportable, performance indicators need to be developed and consistently adhered to by the respected organisations.  For sustainability reporting to be meaningful, it needs to be connected to the strategy of an organization.  Therefore, the indicators need to be relevant for the organization. Few of the important elements of sustainability reporting compared with financial reporting are presented in Table 1

Sustainability reporting has taken many different forms. There are stand-alone reports that can be published annually or biannually. Alternatively, sustainability reporting can happen via a suite of reports that are also published online. Although currently it is most common for organizations to publish environmental or social information in separate reports, there are also approaches that combine them with the annual financial report . Sustainability reporting can be considered as synonymous with other terms for non-financial reporting; triple bottom line reporting, corporate social responsibility (CSR) reporting, and more. It is also an intrinsic element of integrated reporting; a more recent development that combines the analysis of financial and non-financial performance.

Significance of Sustainability Reporting

There are benefits corporate organisation would have by practising sustainability reporting. These are not limited to the following:

Financial performance

The advocators of sustainability reporting contended that disclosure offers reporting companies a wide spectrum of intangible benefits, such as employee loyalty and consumer reputation which could improve the financial performance of firms directly or indirectly.

Building trust 

Transparency about non-financial performance can help to reduce reputational risks, open up dialogue with stakeholders such as customers, communities and investors, and demonstrate leadership, openness and accountability. 

Improved processes and systems 

Internal management and decision-making processes can be examined and improved, leading to cost reductions by measuring and monitoring such issues as energy consumption, materials use, and waste. 

Progressing vision and strategy 

Comprehensive analysis of strengths and weaknesses, and the engagement with stakeholders that is necessary for sustainability reporting, can lead to more robust and wide-ranging organizational visions and strategies. Importantly, companies can make sustainability an integral part of their strategies. 

Reducing compliance costs

Measuring sustainability performance can help companies to meet regulatory requirements effectively, avoid costly breaches, and gather necessary data in a more efficient and cost-effective way. 

Competitive advantage 

Companies seen as leaders and innovators can be in a stronger bargaining position when it comes to attracting investment, initiating new activities, entering new markets, and negotiating contracts.

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[i] Bruntland Report for the World Commission on Environment and Development (1992)

[ii] The Dorset Education for Sustainability Network

[iii] PWC

[iv] Eccles & Krzus (2010).

The globalisation of capital markets and quest for improved foreign direct investments have enhanced harmonisation of financial reporting standards across the world. Hence, on 1 August 2008, the FRF and MASB announced their plan to bring Malaysia to full convergence with International Financial Reporting Standards (IFRSs) by 1 January 2012 as the changeover from Financial Reporting Standards (FRSs) to Malaysian Financial Reporting Standards (MFRSs), equivalent to IFRSs will help place Malaysian businesses on a level playing field with its international counterparts.

The challenge is to keep updated with the changes and new standards that are being released on a regular basis as successful MFRS compliance requires efficient systems and hands-on advisory.  Responding to these challenges will take productive time and efforts to be utilised in your core business activities.

How can SALIHIN be of help?

SALIHIN's dedicated professionals leverage on years of experience of IFRSs to provide standardized reporting services, as well as the industry’s highest levels of insight and technical knowledge.

Services offering

Our IFRS specialists can assist you navigate the complexity of the Standards so you can focus your time and effort on running your business. SALIHIN provides services in the following areas:

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  Reporting and Compliance

  
  


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  Designing financial reporting system based on MFRSs

  
  


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  Advising on accounting polices based on MFRSs framework

  
  


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  Conducting staff training on MFRSs at your convenience

  
  

Our competences and capabilities

Expertise and thought leadership

• 
  

  Our practitioners are recognised expertise in the industry with requisite experience in financial and non-financial reporting skill in areas such as financial capital, human capital, social capital, intellectual capital.

  
  

External engagement and collaboration

• 
  

  SALIHIN demonstrate her commitment to integrating reporting through active participation in various initiatives with various national regulatory authorities and professional association like Bursa Malaysia Securities, MIA, MAFA, ACCA, and CPA Australia.

  
  

Credentials

• 
  

  SALIHIN has extensive technical expertise and experience in both Advisory and Assurance delivering engagements across our portfolio of integrated reporting offerings.

  
  

Inter-functional synergies

• 
  

  SALIHIN has dynamic model that enables leveraging of synergies across our functions of risk advisory services, tax, audit, IT consulting, Sharia and financial advisory services to bring most value to clients

  
  

Tools and methodologies

• 
  

  SALIHIN possesses dynamic set of methodologies and tools that are deployed to deliver successful outcomes on client projects.