INTHEBLACK May 2022 - Magazine - Page 28
F E AT U R E
// A C C R U A L B AS I S
ACCOUNTING
upgrading process and technological capabilities,
and developing and empowering human resources
through change management initiatives.
Mustafa says various stakeholder engagement
activities have been put in place, including getting
buy-in and support from relevant authorities and
driving change through government departments
by emphasising the importance and benefits of
switching to accrual accounting.
“Ultimately, the support from relevant authorities
and the cooperation from personnel have
contributed as success factors in maintaining the
momentum during the transition and materialising
the implementation of accrual accounting.
“In order to equip personnel with relevant
knowledge and skills in accounting systems and
accrual accounting, ongoing training sessions are
conducted for the people involved.”
28 ITB May 2022
Until now, a total of 32 Malaysian Public
Sector Accounting Standards (MPSAS) have
been developed – primarily from IPSAS – and
transformed into accounting policies.
NOT WITHOUT ITS CHALLENGES
Mustafa says the Malaysian system is being
developed as centralised, harmonised, integrated,
upgradable and supportive of continuous
improvement.
The biggest challenge in implementing accrual
accounting in Malaysia to date has been the
amendment of legislation and rules pertaining to
the financial reporting and accounting system, such
as the Financial Procedures Act 1957 and other
relevant acts.
“This step is important and necessary, as the
current Financial Procedures Act 1957 requires