Page 40 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL AUDIT OVERSIGHT BOARD
REPORT
2018 NOTES TO THE FINANCIAL STATEMENTS

1. General

On 1 April 2010, the Securities Commission Malaysia (SC) established the Audit Oversight Board (AOB)
under section 31C of the Securities Commission Malaysia Act 1993 (SCMA). The AOB was established
for the purposes set out in section 31B of the SCMA, namely:

a. to promote and develop an effective and robust audit oversight framework in Malaysia;
b. to promote confidence in the quality and reliability of audited financial statements in Malaysia;
c. to regulate auditors of public-interest entities or schedule funds; and
d. to exercise oversight over any person who prepares a report in relation to financial information,
required to be submitted under the securities laws, guidelines issued by the Commission or the
rules of a stock exchange, of a:

(i) public-interest entity or schedule fund;
(ii) non-public interest entity seeking approval to become a public–listed company or a
corporation listed on the stock exchange; or
(iii) non-schedule fund seeking approval to become a schedule fund.

To facilitate the abovementioned purposes, a fund known as the AOB Fund was established under
section 31H of the SCMA. The AOB Fund is administered by the SC. The SC provides administrative
and accounting support to the AOB Fund and the accounts are kept separately from the accounts of
the SC in accordance with section 31L(5) of the SCMA. The SC will continue to provide the necessary
financial support to the AOB for the foreseeable future.

2. Basis of preparation

(a) Statement of compliance

The financial statements of the AOB have been prepared in accordance with Malaysian Financial
Reporting Standards (MFRSs) and International Financial Reporting Standards.

The following are accounting standards, amendments and interpretations that have been issued
by the Malaysian Accounting Standards Board (MASB) but have not been adopted by the AOB:

MFRSs, Interpretations and amendments effective for annual periods beginning on or
after 1 January 2019

• MFRS 16, Leases
• IC Interpretation 23, Uncertainty over Income Tax Treatments
• Amendments to MFRS 3, Business Combinations (Annual Improvements to MFRS
Standards 2015-2017 Cycle)
• Amendments to MFRS 9, Financial Instruments – Prepayment Features with Negative
Compensation
• Amendments to MFRS 11, Joint Arrangements (Annual Improvements to MFRS Standards
2015-2017 Cycle)

38 | PART TWO STATEMENTS

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