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- Resources
- MICPA COVID-19 Resource & Support
MICPA COVID-19 Resource & Support
COVID-19 has gone global and World Health Organisation declared a pandemic. While the impact of this pandemic on people’s health is paramount, its effect on the world economy is going to be monumental. It is having an effect on individuals, businesses and the public at large. MICPA is closely monitoring the development of COVID-19, to share information with members on a timely basis as well as to ensure we are taking the appropriate action to protect the wellbeing of our members, stakeholders and employees.
Our members, both professional accountants in business and in public practice, have an important role amidst and post-pandemic, as they provide advice and support to businesses facing the economic backlash of COVID-19. These resources, along with the latest information from the Malaysian Government and regulatory bodies, will provide support to our members and their clients in navigating these unprecedented times.
Institute Updates
Full Movement Control Order (FMCO)
In line with the Government’s implementation of a Full Movement Control Order (FMCO) nationwide from June 1 – 28, 2021, the Institute’s office will remain closed during this period with staff working from home. All meetings and events are to be held virtually.
Should you need to reach us, here are the email addresses of our key services:
Technical: technical@micpa.com.my
CPD: cpd@micpa.com.my
Membership: membership@micpa.com.my
Student Affairs: jess@micpa.com.my
Examination: exam@micpa.com.my
Finance: ksl.acc@micpa.com.my
Other Matters: micpa@micpa.com.my
Technical Updates
Our Technical team continues to monitor any developments or updates from our local regulators, and will be issuing urgent circulars to our members on Tuesdays, on top of the usual Friday email blasts.
Advice & Support
MICPA Technical Insight
MICPA-GT COVID-19 Pandemic: Considerations for Assurance Engagements – Inventory Observations
MICPA-GT COVID-19 Pandemic: Performing Roll-forward and Roll-back Procedures
COVID 19 Determining Materiality
COVID-19 is having a profound effect on many businesses and we can expect to see this continue into future financial reporting periods. Whether businesses are experiencing a temporary downturn as a result, or more radical changes, COVID-19 is likely to impact how materiality in audits is determined by auditors and the choice of benchmarks used.
Accounting Considerations due to the Impact of COVID-19
While businesses are facing negative impacts on the Malaysian economy, entities would also need to assess the impact of the COVID-19 pandemic on financial reporting. In Malaysia, most of the entities are required to limit or suspend their business operations in view of the introduction of the Movement Control Order. In fact, this poses a significant impact on Malaysian financial markets, resulting in accounting implications for many entities.
Audit Considerations in respect of Going Concern due to the Impact of COVID-19
The uncertainty in the economy arising from the COVID-19 has also created an impact on the entities that have not been encountered before. This may result in significant financial reporting implications for preparers of financial statements. The same also impacts the work of auditors. In view of this, the Institute wishes to highlight to auditors a specific matter relating to the going concern concept, arising from COVID-19.
Mitigating the Impact of COVID-19: Learning Points
Economically, this year is shaping up to be the worst year since the Great Depression of the 1930s. The relentless spread of the coronavirus disease (COVID-19) has resulted in over a million infected, tens of thousands killed, wrecked global supply chains, and laid low many economies. It has been a bloodbath in the stock markets.
IAASB
Auditor Reporting in the Current Evolving Environment Due to COVID-19
Review Engagements on Interim Financial Information in the Current Evolving Environment Due to COVID-19
Auditing Accounting Estimates in the Current Evolving Environment Due to COVID-19
Guidance on Auditor Considerations Relating to Subsequent Events in Light of Changing Environment Due to the Covid-19 Pandemic
Guidance on Auditor Considerations Relating to Going Concern in Light of Changing Environment Due to the COVID-19 Pandemic
Highlighting Areas of Focus in an Evolving Audit Environment Due to the Impact of COVID-19
Government Directives
Ministry of Finance (MoF)
To cushion the current economic onslaught of COVID-19, the Malaysian Government has rolled out several stimulus packages to support the Nation:
1) 2020 Economic Stimulus Package
2) PRIHATIN Rakyat Economic Stimulus Package
3) PRIHATIN Rakyat Economic Stimulus Package (Additional)
4) PENJANA Short-Term Economic Recovery Plan
5) Special Announcement on Kita Prihatin
6) Special Announcement on PERMAI Assistance Package
7) Program Strategik Memperkasa Rakyat dan Ekonomi (PEMERKASA)
Federal Gazette
- Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020
- Summary of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020
Ministry of International Trade and Industry (MITI)
Following the Movement Control Order (MCO) announced by the Government on January 11, 2021, the Ministry of International Trade and Industry (MITI) has issued a statement in a media release on January 12, 2021 confirming the five (5) essential economic sectors that are allowed to operate during the MCO period in the six (6) affected states, namely Selangor, Penang, Melaka, Johor, Sabah and the Federal Territories (Kuala Lumpur, Labuan and Putrajaya).
The five (5) essential economic sectors have been determined as follows:
• Manufacturing sector (under the oversight of MITI)
• Construction
• Services
• Trade and distribution sectors
• Plantations and commodities
Resources:
Regulatory Response
Bank Negara Malaysia (BNM)
- Moratorium for Individuals, Microenterprises and affected Small Medium Practices
- Enhancements to Facilities under Bank Negara Malaysia’s fund for Small Medium Enterprise
- Additional Allocation for the SME Automation and Digitalisation Facility
- Establishment of RM1 billion High Tech Facility National Investment Aspirations
- New and Enhanced Financing Facilities for SMEs Affected by COVID-19
- Enhanced General Mandate for Pro Rata Rights Issue to Expedite Secondary Fund Raising for Eligible Listed Issuers
- Budget Measures to Assist Individuals and SMEs Affected by COVID-19
- Targeted Repayment Assistance Better Serves Borrowers’ Needs
- Financial Stability Review for First Half 2020
- Measures to Assist Individuals, SMEs and Corporates Affected by the COVID-19
- Additional Measures to Further Support SMEs and Individuals Affected by the COVID-19 Outbreak
- BNM’s Fund for SMEs: Financing Facilities to Assist SMEs Affected by COVID-19, Frequently Asked Questions
- Economic and Monetary Review and Financial Stability Review
- Others
Bursa Malaysia (The Exchange)
- Additional Relief Measures to Support Listed Isuers/Corporations Amid COVID-19 Pandemic
- Extension of Time for Issuance of Quarterly Reports, Annual Reports and Financial Statements:
- Additional Temporary Relief Measures for Listed Issuers/Corporations:
- Enhanced General Mandate for Pro Rata Rights Issue to Expedite Secondary Fund Raising for Eligible Listed Issuers
- Disclosure Guidance on COVID-19 Related Impacts and Investments
- One-Month Extension of Time for the Issuance of Annual Reports and Annual Audited Financial Statements by Listed Issuers with Financial Year Ended March 31, 2020
- Additional Reflief Measures to Provide Flexibilities in Fundraising and Ease Compliance for Listed Issuers
- Capital Market Regulators Grant flexibility for Listed Issuers on AGMs and Issuance of Periodic Reports
- Additional Relief Measures to Alleviate the Impact of COVID-19 on Capital Market Players
- Amendments to Main and ACE Market Listing Requirements to Facilitate Application of Specified Corporate Exercises Via Electronic Means
- Others
Companies Commission of Malaysia (SSM)
- Extension of Time for Circulation of Financial Statements and Reports, Holding of Annual General Meeting and Lodgment of Financial Statements for Companies Affected by the Implementation of Movement Control Order
- Frequently Asked Questions on Temporary Relief Measures for Insurance Policyholders and Takaful Participants
- Frequently Asked Questions on Express Filing Application for Customers During of Movement Control Order
- Frequently Asked Questions on Register Ezbiz User Account During Movement Control Order
- Frequently Asked Questions on Compound Reduction Incentive for Application to Strike Off Company Under Section 549/550 Companies Act 2016
- Late Submission Fee Exemption for Statutory Documents
- Practice Directive No. 6/2020: EOT for Annual General Meeting and Lodgement of Financial Statements (revised on October 22, 2020)
- Practice Directive No. 6/2020: EOT for Annual General Meeting and Lodgement of Financial Statements (revised on August 21, 2020)
- FAQ on EOT for Circulation, Annual General Meeting and Lodgement of Financial Statements for Financial Year End 1 January 2020 to 31 March 2020 (issued on August 21, 2020).
- FAQs Related to Government’s Movement Control Order to Contain COVID-19
- FAQs In Relation to Increase in the Value of Indebtedness from RM10,000 to RM50,000 Until December 31, 2020
- Extension of Time for Renewal of Company Secretary’s Licence Under Section 20G(1)(b) of the Companies Commission of Malaysia Act 2001
Inland Revenue Board (IRB)
- Frequently Asked Questions on Revision of Tax Estimate in the 11th Month of the Basis Year for YAs 2021 and 2022 and Deferment of Initial Tax Estimates Payment (Form CP204) and Instalment Payment Scheme (CP500) for Small and Medium Enterprises from January 1, 2022 to June 30, 2022 (updated as at November 25, 2021) NEW
- Frequently Asked Questions on Special Tax Deduction for Taxpayers on Rental Reduction Offered to Small and Medium Enterprises (SMEs) and non-SMEs Pursuant to P.U. (A) 353/2021 and P.U. (A) 354/2021 (revised on September 23, 2021)
- FAQ On Tax Matters During the National Recovery Plan (updated on September 13, 2021)
- Frequently Asked Questions on Deferment of Payment of Estimated Tax Payable (CP204) and Instalment Scheme (CP500) from 1 April 2021 to 31 December 2021 under ‘Program Strategik Memperkasa Rakyat dan Ekonomi (PEMERKASA)
- FAQ on International Tax Issues due to COVID-19 Travel Restrictions (updated as at February 9, 2021)
- FAQs on Advance Pricing Arrangement (APA) Treatment Due to COVID-19
- FAQ on Special Tax Treatment to Financial Institutions in Relation to Moratorium Granted to Customers
- Operational Guidelines (No. 2/2020) (GPHDN 2/2020): Revision of Tax Estimate (CP204) in the Third Month Falling in Calendar Year 2020 and Deferment of Tax Instalment Payments (CP204 and CP500) Announced under the 2020 Economic Stimulus Package
- Frequently Asked Questions (FAQ) on International Tax Issues due to COVID-19 Travel Restrictions (updated on October 9, 2020)
- Guidelines for Approval under Section 44(11C) for COVID-19 Relief Fund
- Return From (RF) Filing Programme for the Year 2020 (Amendment 3/2020)
- FAQ on Revision and Deferment of Tax Estimates under the 2020 Economic Stimulus Package
- FAQ on Special Deduction for Corporate Taxpayers and Other Taxpayers on Rental Reduction Offered to Small and Medium Enterprises (SMEs) Tenants
Royal Malaysian Customs Department (RMCD)
1) Operations and Services during MCOs
2) FAQ on Indirect Tax Initiatives Announced during the Short-Term Economic Recovery Plan (PENJANA)
5) Others
Securities Commission (SC)
- Update on Flexibilities in Complying with Take-over Offer Requirements under Capital Markets and Services Act 2007 and Rules on Take-overs, Mergers and Compulsory Acquisitions
- Majlis Keselamatan Negara Standard Operating Procedures for Capital Market and Securities Commission Malaysia’s Guidance on Virtual Meetings for Listed Issuers
- Guidance and Frequently Asked Questions on the Conduct of General Meetings for Listed Issuers
- Capital Market Regulators Grant Flexibility for Listed Issuers on AGMs and Issuance of Periodic Reports
- Securities Commission Grants Regulatory Flexibilities for Market Participants
- Guidance on Virtual Meetings for Listed Issuers (UPDATED: June 24, 2020)
Malaysian Accounting Standards Board (MASB)
- Amendments to MFRS 16 Leases on Covid-19 Related Rent Concessions Beyond June 30, 2021
- Another COVID-19 Challenge for Directors: Reporting on the Financial Impact
- Recognition of Revenue Progressively from Sale of Residential Property in Accordance with MFRS 15 Revenue from Contracts with Customers upon enactment of COVID-19 Bill 2020
- COVID-19: MFRS 9 Financial Instruments: Expected Credit Loss Considerations
Perbadanan Insurans Deposit Malaysia (PIDM)
International Updates
IFRS Foundation
International Federation of Accountants (IFAC)
International Accounting Standards Board (IASB)
International Organisation of Securities Commission (IOSCO)
The World Bank
World Bank provides US$5.1m for Samoa COVID-19
East Asia and Pacific: Countries Must Act Now to Mitigate Economic Shock of COVID-19
Macroeconomic Policy in the Time of COVID-19: A Primer for Developing Countries (NEW)
International Ethics Standards Board for Accountants (IESBA)
- Ethical and Auditing Implications Arising from Government-Backed COVID-19 Business Support
- Navigating the Heightened Risks of Fraud & Other Illicit Activities During the COVID-19 Pandemic, including Considerations for Auditing Financial Statements
- COVID-19 & Evolving Risks for Money Laundering, Terrorist Financing & Cybercrime
- IESBA Staff Release COVID-19 Q&As Highlighting Ethics & Independence Considerations
