Media & Events

MCMC Pushes For Separate Telco Financial Accounting

07 Sep 2012, Bernama
 KUALA LUMPUR, Sept 7 (Bernama) -- Telecommunication service providers will soon have to prepare separate wholesale and retail financials for their regulator to enhance industry transparency, the Malaysian Communications and Multimedia Commission (MCMC) said today.
 
 The MCMC said the release of a public inquiry paper today on the proposed Accounting Separation Framework and Implementation Plan was a major step forward by the commission towards greater operational transparency for the industry.
 
 "We believe a robust accounting separation framework will propel the industry to a higher level of competition which in the long run will benefit consumers.
 
 "Service providers will also reap strategic benefits from accounting separation by gaining a better understanding of unit costs, profitability of different services and the impact of technological change on profitability," MCMC Chairman Datuk Mohamed Sharil Tarmizi said in a statement today.
 
 He said the objective of the accounting separation was to reduce information asymmetry, enhance transparency and complement the existing regulatory instruments to address and prevent anti-competitive behaviours in the telecommunications industry.
 
 He said once accounting separation was implemented, service providers would be required to produce regulatory financial statements for wholesale and retail services as if they were separate businesses.
 
 "MCMC is proposing to establish accounting separation using historical cost accounting in 2013 and then progress to current cost accounting from 2014 onwards.
 
 "The people may also participate in this public inquiry by making written submissions on specific matters on which comments are sought in the public inquiry paper," Mohamed Sharil said.
 
 The documents can be downloaded from MCMC's website at http://www.skmm.gov.my.
Share this article
Follow