2017 - November
ISCA Signs MOU with Myanmar National Accountancy Body MICPA to Develop Accountancy Sector in Myanmar
28 Nov 2017 Category: Media Releases
- ISCA will provide MICPA members training on Principles of Accounting, the ISCA Micro Accounting Manual, ISCA Audit Manual as well as IFRS and IFRS for SMEs
28 November, 2017 – The Institute of Singapore Chartered Accountants (ISCA) has signed a Memorandum of Understanding (MOU) with the Myanmar Institute of Certified Public Accountants (MICPA) to co-develop the accountancy profession in Myanmar through capability-building programmes.
These programmes will include training on Principles of Accounting, International Financial Reporting Standards (IFRS), IFRS for SMEs, and continuous professional education classes on topical issues and trends. ISCA will also conduct training on the ISCA Audit Manual and Micro Accounting Model. ISCA developed the Micro Accounting Model (MAM) to provide micro entities in emerging and developing countries with a framework to transit from cash accounting to accrual accounting, and to prepare reliable financial statements. Standard setters and national professional accounting bodies can use MAM as a starting point towards eventually adopting international accounting standards. MAM is envisaged to be a useful tool in helping raise the overall standards of the profession, thereby contributing towards stronger investor confidence.
The MOU was signed yesterday (27 November) by ISCA’s Chief Executive Officer Mr Lee Fook Chiew and MICPA’s Chairman Mr Wan Tin.
“As the national accountancy body of Singapore, we are honoured to contribute to the development of the accountancy sector in Myanmar. In particular, we hope that the MAM can be a helpful framework for businesses, especially micro-business entities to take the step up from cash to accrual accounting, and eventually adopt international accounting standards, thereby raising financial reporting quality and enhancing investor confidence in the country, said Mr Lee.
“We feel greatly honoured to have this opportunity of signing the MOU with ISCA, one of the leading professional accountancy bodies in the world. This is the first step toward forging a close professional relationship with ISCA to work on the development of the accounting profession in Myanmar. Our collaboration with ISCA will also enable MICPA to enhance the accounting and financial reporting quality of our corporate entities, thereby creating a more favourable climate for direct foreign investment”, said Mr Wan Tin.
More business opportunities
Myanmar’s GDP in 2016 was US$ 67.43 billion (S$ 90.81 billion). There are about 30,0000 companies in the country, of which about 90% are SMEs. At present, there are 231 public companies, of which five companies are listed on the Yangon Stock Exchange. Currently, 54 commercial banks operate in Yangon, including six state-owned banks, 21 private banks and 27 foreign banks. On the insurance side, there are 12 private insurance companies in Yangon. There are 148 accounting firms, including 87 audit firms, nine partnerships, 15 audit companies, 33 local non-audit practice firms and four foreign non-audit practice firms.
Myanmar and Singapore can also look forward to more new business opportunities as efforts have been made to help small and medium practices (SMPs) from both sides to interact and build professional networks.
Under the ASEAN Economic Community (AEC) Blueprint 2025, ASEAN will provide a new emphasis on the development of MSMEs in its economic integration efforts. With the AEC promoting free flow of trade, services, investment, capital, and skilled labour, this will help to create more economic opportunities for SMPs of both countries.
For media queries, please contact:
Shaun Tay, Communications Executive, ISCA
Tel: 6597 5613 /9147 7633
Betsy Tan, Senior Communications Manager, ISCA
Tel: 6597 5608/ 9641 6920
Note to Editors:
Under rules-based accounting, a list of detailed rules is set up to be followed when preparing financial statements. For example, depreciation rate for each asset is determined based on the estimated useful life of the asset to facilitate tax calculation.
Under principles based accounting, accountants will apply a set of principles in accounting for transactions. This would require judgement depending on the facts of the situation, which requires more judgement from accountants.
About the Institute of Singapore Chartered Accountants
The Institute of Singapore Chartered Accountants (ISCA) is the national accountancy body of Singapore. ISCA’s vision is to be a globally recognised professional accountancy body, bringing value to our members, the profession and wider community. There are over 32,000 ISCA members making their stride in businesses across industries in Singapore and around the world.
Established in 1963, ISCA is an advocate of the interests of the profession. Possessing a Global Mindset, with Asian Insights, ISCA leverages its regional expertise, knowledge, and networks with diverse stakeholders to contribute towards Singapore’s transformation into a global accountancy hub.
ISCA is the Administrator of the Singapore CA Qualification and the Designated Entity to confer the Chartered Accountant of Singapore - CA (Singapore) - designation.
About the Myanmar Institute of Certified Public Accountants
The Myanmar Institute of Certified Public Accountants (MICPA) was established on 30, January 2014 as a non-profit corporate entity under the Myanmar Companies Act. Our mission is to promote and develop the accounting profession and education to the international standardsto be recognized internationally as the national accountancy body. It has developed close ties with foreign professional accountancy and other organizations by signing MoUs with them. The MICPA has a membership of 1,225 CPAs, of whom practicing accountants are 816 and non-practicing 409. The MICPA operates under the umbrella of the Myanmar Accountancy Council, which is the regulatory body governing the accounting profession in Myanmar, and which confers CPA designations upon those who have successfully completed the CPA courses run by it.