Suggestions or recommendations to overcome the limitations of MFRS 119.

It is undeniably important to the efficiency and fairness of the entity itself that their employees are
treated well. By “treated well”, we mean a company should reflect the real underlying values of
employment benefits.

Even though the convergence with the MFRS 119 brings a lot of benefits to the business
organisations in particular, sacrifices need to be made by the business organisations to ensure
compliance. Among the recommendations that we can suggest to be incurred by companies are
upgrading the accounting systems to ensure smooth compliance, accountants’ practical trainings
to ensure competence and engagement of external specialist to assist accountants in making
actuarial assumptions.

Based on Morni Hayati and Rafizah (2012) point of view, as majority of accountants felt that
their grasps on the MFRS 119 are not that strong, further initiatives need to be taken by these
professionals to ensure that their knowledge on this MFRS are further strengthened. The
accountants should work closely with the professional bodies in highlighting to the bodies their
needs of training. The board of directors also play a very vital role here to ensure full compliance
with the MFRS 119 where the members of the board should also undergo training as they are
responsible for their employees’ benefits. Moreover, MASB being the owner of the MFRSs
should also be sharing more information through workshops and seminars to ensure that the
preparers of financial statements are ready for full convergence. Furthermore, MASB need to
standardize the actuarial terms that are being used in compliance to MFRS 119 to overcome the
confusion by users of financial statements (Syahrir, Atef & Sharofi 2011). Apart from that, related
bodies should revise MFRS 119 in terms of words selection to overcome misinterpretation by the
users of the MFRS as it is should be act as guidance in relation to employment benefits.

Besides, ethical behavior by accountants is also required since numerous accountants designed
were involved in, or at least knew about the various reporting irregularities. By ethical behavior,
we mean that accountants should “do the right thing”. In our context, this means that accountants
must behave with integrity and independence in putting the employee’s interests ahead of
management’s interests. For example, the overall actuarial assumptions used must be unbiased and
mutually compatible, and represent the best estimate of the variables determining the ultimate
post-employment benefit cost.

As mentioned by Thong Foo Vung (2012), since MFRS 119 has a few amendments, the
accountants have to keep updating, and it definitely is not an easy task. On the other hand, the
academicians also play an important role in ensuring that the future accountants are equipped
with right knowledge and exposure for the job market. Accounting syllabus needs to be updated
to ensure future graduates have better understanding on this MFRS. Academicians also need to
be more exposed towards the changes and amendments in the MFRS by attending more
workshops and seminars organised by the professional bodies and the regulators. Apart from
that, it will also be good for the academicians to do industrial training so that they will have
hands on experience on MFRS 119 and share their knowledge with the students.

Undeniably, it is important to the Malaysia economy as the culture of Malaysia is considers to be

emphasizing on the employee benefits that the company is able to provide recently.The
convergence with the MFRS 119 is one of the important moves made by the government to ensure
that the status of develop nation is achievable.

Reference

Nor Asma Lode, Mohd Atef Md Yusof. (2015). Pension Accounting Disclosure And Stock
Market Reactions. Retrieved on 25 October 2018, from http://repo.uum.edu.my/16440/1/9.pdf

Mohd Syahrir Rahim, Mohd ‘Atef Md Yusof, Mohd Sharofi Ismail. (2011). The Reporting of
Employee Retirement Benefits in Malaysia Prior to FRS119. Retrieved on 25 October 2018, from
http://ijbssnet.com/journals/Vol._2_No._5_[Special_Issue_-_March_2011]/32.pdf

Morni Hayati Jaafar Sidik, Rahizah Abd Rahim. (2012). The Benefits And Challenges Of
Financial Reporting Standards In Malaysia: Accounting Practitioners’ Perceptions. Retrieved on
22 October 2018, from http://ajbasweb.com/old/ajbas/2012/July/98-108.pdf