Despite the progress made on gender diversity in the workplace, women are still a minority in top management and at board level globally. According to a PricewaterhouseCoopers (PwC) March report, The leaking pipeline: Where are our female leaders?, women are lost from the pipeline (workplace) through voluntary termination at a rate two or three times faster than men once they have attained the experienced, mid-career, manager / senior manager level of their careers.

The report stated that there is evidence to suggest that the lack of female role models at top senior levels exacerbates the perception among women that advancement opportunities are limited and this leads to further attrition and a shrinking pool from which to find leaders and role models.

To counter this, PwC suggests communicating with and ensuring that current leaders are aware of the changing needs and characteristics of future leaders, particularly women, in order to provide an environment where they can connect and build their career.

Looking at the statistics on Malaysia, it appears that corporate Malaysia generally still favours men over women for top positions. A survey on 50 companies listed on Bursa Malaysia conducted by the Women, Family and Community Development Ministry in 2007 showed that the number of women on boards of directors in Malaysia had gone down by half since 2005, although there has been an encouraging increase of women in senior management positions. In the public sector, women comprise less than half of senior civil servant positions.

Nevertheless, the country has its share of successful women leaders, namely Bank Negara governor Tan Sri Zeti Akhtar Aziz and Datuk Zarinah Anwar who heads the Securities Commission. According to HSBC Bank Malaysia Bhd deputy chairman and CEO Irene Dorner, although the bank does not have enough women at senior levels, its junior executive pipeline is 50% female.

She added that it is not only corporate responsibility but rather good business sense to hire and promote more women to expand the employer’s customer base. Women will also provide differences in experience, perspectives and contacts.

Meanwhile, Datuk Bridget Lai Group chief executive officer Alliance Bank Malaysia Bhd said CEOs and senior management could support their female employees by acknowledging the fundamental difference between women and men; allowing flexibility for women (and men) who need it; providing training that takes advantage of women’s leadership potential and eliminating the corrosive atmosphere and the barriers that exist for women in the workplace.

~ The Star ~

Accounting discrepancies may be cropping up again, judging by the failure of several public-listed companies to issue their audited financial statements on time as required under the stock exchange’s listing requirements.

Seven companies announced delays in the submissions of their accounts - Golden Plus Holdings Bhd, LFE Corp Bhd, Oilcorp Bhd, Axis Inc Bhd, Fotronics Corp Bhd, Ho Hup Construction Co Bhd and Wimems Corp Bhd. Bursa Malaysia and the Securities Commission are believed to have sent an investigative report to each of the seven companies on their non-submission of audited accounts. Companies that are unable to meet the submission deadline are obliged to appoint auditors for a special audit and inform Bursa Malaysia accordingly.

While the announcements show the seriousness with which accounting discipline, responsibility and integrity are currently being pursued by the regulators and accountants, what concerns most people is whether the latest developments are a sign of more accounting irregularities to come and why the resurgence now.

Few Investors would not be drawn to companies that are riddled with accounting uncertainties. Listed companies are accountable to their shareholders and the investing fraternity since their activities - and accounts - should be able to pass public scrutiny.

According to The Institute of Internal Auditors Malaysia (IIA Malaysia) president Walter Sandosam, an IIA survey in 2006 found that 11% of the publiclisted companies did not have an internal audit function and they were mainly second board and Mesdaq companies.

Having an internal auditing function firmly in place provided assurance to management and the board of directors that internal controls and business processes are effective and operating as planned, he said. In the meantime, overall market sentiment does not seem to have been affected, possibly because the companies’ market capitalisation is not substantial.

~ The Star ~

The Financial Reporting Foundation (FRF) and Malaysian Accounting Standards Board (MASB) are targeting to bring Malaysia to full convergence with International Financial Reporting Standards (IFRS) by Jan 1, 2012.

MASB chairman Datuk Zainal Abidin Putih said compliance with IFRS, which are used by more than 100 countries around the world, will facilitate comparability and increase transparency. Although, he added that this move is not a sign of jumping onto the bandwagon for the sake of joining the crowd. He remarked that the IFRS is a robust set of standards.

To facilitate a phased changeover to IFRS, the effective date for applying FRS 139 Financial Instruments: Recognition and Measurement will be Jan 1, 2010.

By 2012, all approved accounting standards applicable to entities other than private entities will converge fully with IFRS. Private entities will continue to apply the Private Entity Reporting Standards until such time the board decides otherwise.

~ The Edge Daily ~

New guidance on registering under the Money Laundering Regulations 2007 has been published by HM Revenue & Customs (HMRC). The guidance - which is intended for Trust or Company Service Providers (TCSPs) and Accountancy Service Providers (ASPs) clarifies earlier guidance issued by the Government. In particular, it states that non-executive directors only fall within the scope of the regulations when they act as a director for firms with high risk business, and that will writing is now outside the scope of the regulations. It also clarifies that customs practitioners only fall within the scope of the regulations when they carry out accountancy services or provide tax advice.

Melissa Tatton from HMRC also confirmed that HMRC will be writing to TCSPs and ASPs who have already applied to register and who may be affected by the updated guidance. Businesses that no longer need to register will have their fees refunded. For the updated guidance and further information, click http://www.hmrc.gov.uk/mlr/mlr9-regdates-announced.htm

~ Chartered Secretary Newswire ~

Corporate responsibility (CR) has become so important these days that it is becoming intertwined with the way a company does its business. OWW Consulting managing director Dr Geoffrey Williams believes that CR should even become part of a company’s key performance indicators.

According to Williams, the main value of a company comes from its brand. He explained that it can take years, sometimes decades, to build (brand) value, creating trust and integrity within a brand. But it can take just five minutes to lose it. Citing Bear Stearns as an example, Williams said its value was “practically wiped out when it offered loans to people who could not afford to pay it.”

He added that Malaysia still had a long way to go in terms of CR, which was a relatively big issue in the US and Britain. He emphasised that CR is important and this means that Malaysia has to take it seriously as they (US & Britain) are big markets for the country. For instance, for products like palm oil, unless companies can show it is coming from sustainable plantations, they are not allowed to sell it in Europe. However, he said Malaysia had a good start in implementing CR, compared with other Asian countries.

~ The Star ~

Large companies are exploiting small businesses by delaying invoice payments and increasing settlement terms, according to the representative body for small firms.

The Federation of Small Businesses (FSB) is arguing that big organisations are ‘unashamedly’ making smaller companies wait over 100 days before being paid. They are also changing terms and conditions with little notice. It cites the example of Alliance Boots, who in January wrote to its suppliers to inform them that, as of April 2008, bills would be paid up to 75 days from the end of the month of invoice with a 2.5% settlement fee.

While the FSB acknowledges that legislation allows small business owners to charge interest on late payments, it argues that many are reluctant to use this for fear of losing contracts with big businesses on which they are often reliant.

~ The Star ~

Little practical action is being taken by businesses on ethical issues despite them being high on company agendas, according to a new report from the United Kingdom. A joint survey from the Chartered Institute of Management Accountants (CIMA) and the Institute of Business Ethics (IBE) has found that while 84 per cent of finance professionals believe business has ‘a moral obligation’ to address global issues, only a third of organisations surveyed publicly report on ethical performance and corporate social responsibility.

CIMA Chief Executive Charles Tilley said that while it is encouraging to note that the accounting fraternity has grasped the bigger picture in terms of the importance of ethical issues in business, this area also needs to be embedded in organisational strategy and reported on more thoroughly. Phillipa Foster Back, Director of the IBE, agrees and adds that the challenge now is to sustain this attitude when business becomes more difficult.

~ Chartered Secretary Newswire ~