Documentos de Académico
Documentos de Profesional
Documentos de Cultura
No
PARTICULARS
PAGE
INTRODUCTION
9-11
2
6
1
ACKNOWLEDGEMENT
2
5-6
7-8
12
13
14
10
15
11
16
12
Conclusion
17
13
References
18
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ACKNOWLEDGEMENT
Assalamualaikum WBT,
First of all, we would like to thank Allah Swt as we manage to finish this case
study on time and make us believe that anything is possible.
The special thank goes to our beloved lecturer, PM MAHUSIN BIN CHE KOB for all
the knowledge, support that she have gave to all of us which truly help the
progression and smoothness of this study case. The co-operation is much indeed
appreciated.
Our grateful thanks also go to all of our group members for all the cooperation
and hard work in doing this study case. All works during the period that we work
together would be nothing without the cooperation and enthusiasm from the
group members. During that period, its really brought us together to appreciate
the true value of friendship and respect for each other.
Great deals appreciated go to the contribution from our lovely classmate,
AC2204B for their supports and help us in completing this study case.
THANK YOU!
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INTRODUCTION
Malaysia can be classified as a developing nation on the rise due to
various transformations endured throughout the years ranging from every
significant aspects of administration, financial, and economical which bloom
from time to time thus attracting many foreign direct investments to be set up
here. But, the main focus is on the financial point of view or to be more specific
it is regarding the public sector accounting in Malaysia which had gone through
rigorous changes throughout the times.
So, accounting entity concept can be defined as the entity view of an
organization is that it is distinct from any group of individuals associated with it.
The business is considered to be a complete entity where all the business
transactions are a separate entity. Referring to the definition above it can be
relate to the concept of public sector accounting which means the government
is viewed as a separate entity and the main objectives of the public sector are to
serve the public, comply with legislative requirement and certainly not to make
profit. These are some example of governing laws and regulations of Malaysia
which are the Federal Constitutions, Financial Procedure Act 1957, Treasury
Circular and Government Accounting Standard.
Besides, public sector accounting focused on all the accounts of all kind
of government agencies and the person in charge of auditing and assessing all
the accounts are the Auditor General of Malaysia. The Auditor General is
bestowed undisputed power to carry the audit to ensure that all the allocations
of public money are being utilized for the benefit of the public thus increasing
the accountability and integrity in every government agencies available.
Moreover, the accounting system in Malaysia is based on cash basis and it is
monitored by the Accountant General to ensure smooth preparation of all the
disbursement of federal money and also to prepare the annual financial
statement to be tabled down at the parliament.
Even though, Malaysia has these various regulations and systematic
accounting system, she is still far beyond the reach of other developed nations
in term of basis of accounting as many had already implemented the accrual
basis system as it more efficient in terms of setting the fiscal policy of the nation
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itself. So, analysis on the current accounting system and soon to be adopted
system is carried out to compare the benefits of both of the system as it will
give out clear views on the development of the accounting system in the public
sector thus strengthening the slogan of People first, Performance now created
by the government to woo the public hence increased the governance of all the
government accounting standards.
cash used for paying the expenses is not misused by any parties. Besides, the
basis also only provide basic information and the commitment information are
not available. Without the best available commitment, the planning and
allocating of budget transfer cannot be fully utilised and soon ensuring that
there are sufficient funds are available to meet contractual needs.
Other than that, the implementation cost is higher and costly because of
the customization and limited availability so it can be a liability for the
government to implement this basis as it will increase more expenses thus can
increase the public debts and so increase the deficit for the year. Consequently,
it will affect the lives of the public and put the government in critical stage to
save the economy before it is dragged into debt crisis such as the ones
experienced in Italy, Greece and Spain. There are also deficiencies and one of it
is the lack of information for the non financial asset management as once again
the basis only focused solely on the cash information and other non financial
information are ignored and it may affect the judgement to implement the best
fiscal policy for the country itself.
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record all the expenditure and revenues effectively as it only focused generally
and not specified on each of the information in which the payment was made for
and how much or too who it was paid for. The information on these matters are
the key to a successful financial plan and give confidence to the public to
support the government when financially it is stable and are able to resolve any
crisis.
Last but not least, the disincentives for fraud and corruption are limited
and this surely attracted the irresponsible parties who are only interested in
gaining all benefits from the system to ensure the survival of continuous gains
and income from the system that supposedly to help the nation in serving its
people instead of becoming a cash cow for the financial culprits. Such examples
can be seen in the fiascos regarding the Perwaja and Sime Darby Bhd when
there is too little disincentive to deter fraud, that could make the government
paid the price for not taking more stern actions to the perpetrators.
the inception of the new policy, it is used to advocate the for the adoption of the
international standard for fiscal transparency as the way towards proper
assessment and dissemination of public solvency and sustainability, plus
Malaysia is the first country to apply the cash basis IPSAS. The application of the
requirement of IPSAS will improve both the quality and comparability of financial
information reported by public sector entities. Thus, this will enhance
accountability and transparency of the information.
Then, moving on to the Government Accounting Standard (PPK) is applied
to ensure that it is used during the preparations of the financial statement such
as required by the Federal Constitution and Financial Procedure Act 1957. It is
used as a guideline to standardize all the elements in the government
accounting and covers everything such as the principle, rules and procedure in
that are accepted in order to present the financial statements of the
government. It can be summed up that both of the rules and obligations
required by the Federal Constitutions and Financial Procedure Act 1957 are to
ensure that any discrepancies can be deter out from the financial statement of
the government hence showing that the sense of accountability and
transparency played major part in all the agencies of the government. Then, the
government are able to allocate the best possible resources to all members of
the public as the best policy can be implemented trough reliable and believable
information.
The other parts of the government of Malaysia that are the local
government, statutory bodies and Islamic Council used the elements of
International Financial Reporting Standard (IFRS)
(Requirement for Securities Commission and Bank Negara), Private Entity
Reporting Standard (PERS), and also Malaysian Accounting Standard Boards
(MASB) .
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Scope of work
package approved by
government
Not mentioned
Structure of corporate
Not disclosed
General Department
Disclosed
governance
Post implementations
Not mentioned
review
Implementation of
Federal Statutory
SAGA
only
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Financial statements prepared on the accrual basis inform users not only of past
transactions involving the payment and receipt of cash but also of obligations to
pay cash in the future and of resources that represent cash to be received in the
future. As the accounting system enshrined in the accounting standards, accrual
accounting has long become the standard accounting practice in the private
sector. Given the emphasis of business enterprises on profitability, the
relevance of accrual accounting in the private sector is rarely challenged. No
doubt, accrual accounting is generally more reliable than cash accounting in
measuring financial performance. The outcome of the accrual accounting is to
enable more efficient and effective fiscal policy on the Key Areas Result and it
also can provide many benefits to the public sector.
The first reason is that it can enabled the costing of data of output to be
more effective thus the evaluation of alternatives also became more efficient to
achieve the outcomes hence in return can be called as cost savings for the
government. Besides, the information on all the assets can provide and facilitate
unlocking values which can generate the revenues deriving from all the assets
owned. Other than that, the asset listings also provide the database for
infrastructure management which then leading to the better assets
maintenance hence providing better service delivery for the public.
There are also other benefits of the accrual accounting such as the better
level of accountability and sustainability, better measure of policies effect and
promote greater integrity.
The level of accountability will be increased using the accrual accounting as it
improve the performance and financial management of the agency and also it is
perfect as it is called as the accounting for consumption resources.
As for the level of sustainability, it can facilitate the management of all
the revenues of all government agencies and also it promotes the
intergenerational equity of public policy which can help to give greater
transparency of the policies created by the government. The policies then can
be measured accordingly to check on its level of effectiveness thus
complimenting the results framework of the OBB, when the policies are fairly
scrutinised and assessed, the level of accountability of executive government
also become better.
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accounting and finance as the chairman of the programme, data generic, human
resources and project monitoring teams as the members to assist in the
implementation of the system.
Now, the first objective of the DDSA is to ensure the ease of
implementation and also integration of applications systems within and between
the agencies and this will create more reliable and trustworthy operations for all
the agencies. The second one is that it facilitates the exchange of data between
the government agencies and it surely can improve the efficiency of data
sharing among the agencies to ensure the resources can be fully utilized for any
decision making involved.
Besides, it is also assisted all the agencies in the development of
application system thus allow the users to communicate with each other using
the same definition and data. In addition, the DDSA also facilitate the
communications between the public sector and private sector through the use of
standard data definitions, as the government are trying to build the relationship
with private sector in order to maximize the growth of the economy and reached
the target of obtaining the developed nation status in 2020.
The DDSA can help create a framework which can revolutionized the data
available in all the agencies thus can help create the transformation and
modernisation craved by the government in order to pick up pace with the
globalisation and trending of other developed nations in other part of the world.
Without the best possible framework, Malaysia cannot achieve the highly
respected status and lagged in terms of accounting and administrations.
Current
Modified cash basis
GFMAS
Future
Accrual basis
1 GFMAS
System
IPSAS Cash
IPSAS Accrual
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State
Before
Modified cash basis
Manual
IPSAS cash
Current
Modified cash basis
SPEKS
IPSAS cash
Future
Accrual basis
SPEKS ( Accrual)
IPSAS accrual
Current
Accrual basis
SAGA
Future
Accrual basis
SAGA
systems
IFRS, PERS, PKPA 1/2007,
IPSAS accrual
MASB
MASB
Conclusion
It can sum up that the Malaysian government is very serious in reaching
the aspiration of Wawasan 2020 which recognised the country as the developing
nation in par with other European and Asian countries. So, it is appropriate to
say that the implementation of accrual accounting together with the Outcome
Based Budgeting and Activity Based Costing are the right and necessary steps
to revolutionized the public sector accounting and also administratively to
ensure that Malaysia has the best possible options in order to transform every
aspect to ensure the degree of accountability and integrity increased.
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When the objectives are fulfilled, the level of confidence of the public
towards the government also increased and thus in return attracting the private
sector to join hands to fully support the public sector and consequently can help
Malaysia to fully utilized resources available and also yet to be discovered so
that the wellness of the public can be fully safeguarded.
Hence, when the government are at its best, the amount of economics
deficiencies such as the inflation can be reduced and prevent the country from
being dragged into fiascos such that had already happened in European nations
such as Greece and Spain. So, all parties must support and provide the best
methodology to ensure the objectives of transformation programme are
successful and improvised the nation itself towards developing nation that had
been long hoped for and without commitment and accountability in all parts of
government agencies existed in Malaysia.
REFERENCES
Magazines
Accountants Today
Internet
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Ministry Of Finance
Text Book
Journal
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