What is accounting like in Malaysia?

As of 2019, there were more than 35,000 qualified accountants in the country - although it has become a target to get this number up to 60,000. Along with the fact that accounting, or perakaunan, is one of the most popular courses undertaken by young Malaysians, accounting is considered to be one of the most important services needed by businesses and corporations.

Is it easy to study accounting?

While the path towards gaining a professional accounting qualification may be challenging, it is nonetheless possible for the willing learner! Let's look at accounting in Malaysia and the list of the best books out there to guide you through ACCA and accounting.

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Adlina
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Perakaunan Malaysia

Nearly 30% out of 600 Multimedia Super Corridor (MSC) companies in Malaysia recognise accounting as a major service in their business. 

To regulate the accountancy profession in Malaysia, there exists the Malaysian Institute of Accountants, or MIA, as an agency under the Ministry of Finance. It is the role of MIA to monitor the professional conduct and ethical standards of all registered accountants, as well as regulate the auditing standards for the perakaunan profession in Malaysia.

Who sets accounting standards in Malaysia? 

The Malaysian Accounting Standards Board (MASB) is in charge of issuing these accounting standards, however, the performance and the financial arrangements carried out by MASB are overseen by the Financial Reporting Foundation. Despite this domestic focus, it was announced in 2012 that Malaysia would converge with the International Financial Reporting Standards (IFRS) to facilitate comparability and increase transparency.

What are the opportunities and prerequisites to become an accountant in Malaysia?

Perakaunan in Malaysia
Accountants in Malaysia have to adhere to the standards set by the Malaysian Accounting Standards Board (MASB). Source: roberthalf.com.hk

Which are the basic accounting principles and concepts?

Accounting principles are the rules that organisations have to follow when reporting their financial information. Among the famous principles adopted by businesses in Malaysia and around the world are these:

Conservatism

Also called prudence, this basic accounting principle is based on the policy of "playing safe". When making records in a company's accounting books, expenses and liabilities should be recorded as soon as possible - in contrast, revenues and assets are to be recorded only when it is confirmed to occur.

This happens because if the profits ascertained are more than the actual, the dividend may be distributed, leading to a reduction in the company's capital. However, this principle may also encourage an earlier recording of losses, causing the company to report its performance to be worse than its actual state.

Materiality

Accounting should focus on material facts. Any fact is regarded as "material" when it is reasonably believed to influence the decision making of another party who is reading the company's financial statements. For instance, money spent on upgrading machine intelligence can be a material fact since it may increase the future earning capacity of the company.

The information about these material facts should be reported through financial statements and their accompanying notes so that interested parties can make informed decisions. It is also important to note that it may not be necessary to adhere to this principle if the amount (related to the material fact) is very small.

Objectivity

Another important one out of the accounting principles, this principle emphasises the objective recording of all accounting transactions. This means that business transactions should be free from the bias of accountants and other parties.

Keeping transactions objective is made possible through the use of verifiable documents or vouchers. For example, cash receipts and invoices can be documentary evidence for the cost of items and services, while providing an objective basis to verify these transactions. Unfortunately, objectivity may sometimes be difficult to determine because market values can vary from person to person and from place to place.

Can you name all the principles you need to know before your ACCA exam?

The best Accounting tutors available
Sumandran
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Sumandran
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Adlina
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5 (10 reviews)
Adlina
RM30
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Jow
5
5 (3 reviews)
Jow
RM70
/h
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1st lesson belanja!
May syuen
5
5 (5 reviews)
May syuen
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Muhamad faris
5
5 (2 reviews)
Muhamad faris
RM36
/h
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Fakhriyah
5
5 (4 reviews)
Fakhriyah
RM10
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Liow
5
5 (6 reviews)
Liow
RM40
/h
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1st lesson belanja!
Mohamad hisham
Mohamad hisham
RM80
/h
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1st lesson belanja!
Sumandran
5
5 (34 reviews)
Sumandran
RM100
/h
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1st lesson belanja!
Adlina
5
5 (10 reviews)
Adlina
RM30
/h
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1st lesson belanja!
Jow
5
5 (3 reviews)
Jow
RM70
/h
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1st lesson belanja!
May syuen
5
5 (5 reviews)
May syuen
RM100
/h
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1st lesson belanja!
Muhamad faris
5
5 (2 reviews)
Muhamad faris
RM36
/h
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1st lesson belanja!
Fakhriyah
5
5 (4 reviews)
Fakhriyah
RM10
/h
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1st lesson belanja!
Liow
5
5 (6 reviews)
Liow
RM40
/h
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1st lesson belanja!
Mohamad hisham
Mohamad hisham
RM80
/h
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1st lesson belanja!
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Is there any basic accounting tutorial for students?

Do you know how much it costs to study ACCA and accounting in Malaysia?

If you're looking to study ACCA or take up an accounting degree, an accounting tutor may be just what you need to learn about what Perakaunan is and the essential accounting skills you need to pick up to flourish in your studies.

At an average price of only RM36, Superprof brings you tutors from across Malaysia and around the world - ready to share with you their passion for accounting. Want to learn about the basic accounting concepts and theory? Not sure when to use cash-based or accrual accounting? Get the answers to these questions by visiting our list of available tutors in your area!

What if I want to learn accounting online? 

Not only do Superprof tutors offer face-to-face classes, but you can also have your accounting lessons online! You can even choose a rate you are comfortable with - more experienced tutors do charge their lessons at a higher fee, however, you can opt for quality tutoring at reasonable fees, too.

Would you also like to book a lesson with a Superprof tutor?

When you click on the "Book a lesson" button in a tutor's profile, you have the opportunity to introduce yourself and tell him/her more about what you want to learn. Apart from telling him/her what you expect from the accounting lessons, you can also schedule a date for your first lesson. Book a lesson with your Superprof accounting tutor today!

Accounting principles tutor
Book a lesson with your Superprof tutor - learn what you want, when you want it! Source: pexels.com

What are the best books to study for the Diploma Perakaunan?

So you want to take Diploma Perakaunan in Malaysia. What books should you start with to gain a basic understanding of accounting principles and other information to succeed in your Diploma Perakaunan? Here are some book recommendations for learners at the accounting diploma level:

Accounting All-in-One For Dummies

Written by Kenneth Boyd, Lita Epstein, Mark P. Holtzman, Frimette Kass-Shraibman, Maire Loughran, Vijay S. Sampath, John A. Tracy, Tage C. Tracy, and Jill G. Welytok: this book can be considered a one-stop reference for those new to accounting - even learners familiar with accounting can benefit from this book, too.

While there are many things you'll learn through the book as a student in Diploma Perakaunan, among them are ways to report financial statements, how to make informed business decisions, ways to audit, and how to detect financial fraud. The book is also a comprehensive resource for a variety of accounting principles to help you get up to speed on everything accounting.

Accounting Made Simple: Accounting Explained in 100 Pages or Less

As a licensed CPA, Mike Piper has written this book with the idea of using zero technical jargon - get to know about accounting in plain and simple English! This makes Accounting Made Simple a terrific introductory book to accounting since the information provided is quick and easy for beginner learners.

Here are some basic accounting tips you can learn from a licensed CPA:

  • The Accounting Equation and why on earth it's so important
  • How to read and generate financial statements
  • How to prepare journal entries with debits and credits
  • How to calculate depreciation and amortization expenses
  • Calculate and interpret different financial ratios

Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports

This is another great introductory book to accounting, written by Thomas R. Ittelson, who is an expert at translating complex financial topics in an accessible way to non-financial audiences. No accounting background is required to read this book - perfect for the learner taking Diploma Perakaunan.

The book teaches readers how to make sense of accounting vocabulary while demonstrating the structure and purpose of three major numeric statements: the income statement, the cash flow statement, and the balance sheet. You will learn about how these stakeholders contribute towards the understanding of a company's financial status, which is essential to financial reporting.

Would you also fancy a list of the best online resources for ACCA and accounting courses?

Books for Diploma Perakaunan
You can find books that will help you understand basic accounting principles, or those to guide you through the theory and practices in accounting. Source: forafinancial.com

Now that you've chosen to major in an accounting degree, you might be looking for some essential books to guide you through the theory and practices in accounting. For your Ijazah Sarjana Muda Perakaunan, here are a couple of the most recommended accounting books for accounting degree students:

A Brief History of Economic Genius

How has the intersection of mathematics, business principles, and philosophy shaped the field of economics? Accounting itself is derived from the progression of mathematics and economic theory, during which important accounting principles, involving elements such as double-entry bookkeeping, were developed.

Part of succeeding in your accounting degree involves an understanding of accounting's history. If you'd like to learn about historical information in an easy-to-read manner, you'll find yourself breezing through the ideas of brilliant economists and mathematicians presented in this book by Paul Strathern.

You can also learn about the history of accounting and more when you attend tuition for ACCA in Malaysia.

Warren Buffett Accounting Book: Reading Financial Statements for Value Investing

As a person in accounting, it is crucial to understand the needs of your company and its stakeholders, especially those of its investors. Both businessman and philanthropist, Warren Buffett guides his readers through investment - from fundamental analysis to pure accounting research.

Very generally, the book will teach you these basic accounting ideas:

  • How to calculate the intrinsic value of a company
  • What a discount rate is and how it works
  • Instructions for reading income statements, balance sheets, and cash flow statements
  • How to determine important ratios to properly value any business

When you find what you need, you can read to succeed!

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Ayleah

One part counsellor-to-be, one part food lover - Ayleah Aquino simplifies even the most complex ideas to make all things learning accessible to everyone. Read about interesting topics in Malaysia from a psychology student's perspective!