Implementation of Accrual Accounting in Malaysian Public Sector

IMPLEMENTATION OF ACCRUAL ACCOUNTING IN THE
MALAYSIAN PUBLIC SECTOR
PREPARED FOR:
PUAN RAZINAH HASSAN
PSA522 - PUBLIC SECTOR ACCOUNTING
GROUP MEMBERS
NAME ID STUDENT
SITI NUREADAH BINTI MD ARIS 2013245966
NORA BINTI ISMAIL 2013463134
NUR FADILAH CHIN BINTI ABDUL HALIM CHIN 2013497676
NORHAKIMAH BINTI MOHD NOOR 2013431642
NUR AMALINA BINTI AZIZ 2013270966

Implementation of Accrual Accounting in the Malaysian Public Sector
TABLE OF CONTENT
TITLE PAGE NUMBER

Foreword 3
1.0 Introduction 4
2.0 Finding & Research Methodology
2.1 Research Journal & Publication On Accrual Accounting 8
2.2 Core Team & Accountant General Department Published Report & 8
Published Articles
2.3 Questionnaire On Accrual Accounting Implementation Among Federal
Government Servants 9
3.0 Finding & Discussion
3.1 Cash Vs Accrual Accounting System With Reference To Public Sector 10
3.2 Limitation Of The Modified Cash Basis 14
3.3 Advantages Of Accrual Accounting 16
3.4 Countries That Have Implemented Accrual Accounting 18
3.4.1 The Move to Accrual Accounting 19
3.4.2 The Introduction of Accrual Based Accounting In The UK Public Sector 20
3.4.3 Experience of Other Countries, Which Prepare Appropriation Accounts 21
Under The Accrual System
3.5 The Risks of Moving To Accrual Based Accounting 22
3.6 Accrual Accounting Integrating With Outcome-Based Budgeting And 24
Activity-Based Cos Malaysian Public Sector Perspective
3.7 Current Development & Progress For Implementation of Accrual 28
Accounting in Malaysian Public Sector
4.0 Conclusion 34
5.0 Recommendation 36
6.0 References 38
7.0 Appendix 40
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FOREWARD
Alhamdulillah, we praise Allah for giving us an opportunity to complete a project paper within the
allotted time.
This topic was selected by our group as we found it very interesting and challenging as Malaysia's
public sector is in the progress of the transition to the new accounting landscape; accrual accounting.
It is hoped that this thesis will determine the most important and critical discovery in the
implementation of accrual accounting in the public sector in Malaysia.
We thank all of those individuals who have contributed directly or indirectly to complete this thesis.
Mrs Razinah Hassan, a lecturer of our courses, to the guidelines provided in this paper
completion of the project.
Mr. Roslan bin A. Rahman, Director of Accounts, Ministry of Finance, Accountant General's
Department Malaysia in an opinion accrual accounting and the actual structure that facilitates
this project.
To our partners, we want to thank them for their help and advice when writing this project
paper.
For our family, we would like to thank them for their patience and understanding through
writing of this paper.
Lastly, to all members of the group for cooperation, resources, commitment and teamwork provided.
We are pleased very much if we can again work together in research and other projects.
Thank you.
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1.0 INTRODUCTION
The New Economic Model (NEM) report has specified accrual accounting to replace cash-basis
accounting in the Federal Government of Malaysia starting year 2015.
This transition will reform and strengthen the countrys fiscal discipline particularly through the public
finance management. With the drive for People First, Performance Now, it is an imperative part in the
transformation of public sector, in line with the aspiration of the Malaysian Government to become a
developed nation by the year 2020.
Accrual accounting is an accounting method that recognizes an economic event as it occurs,

regardless of the cash transactions. Particularly, revenues are recorded when income is earned, but
not necessarily received; and expenses are recognized when expenditures are incurred or resources
are consumed; but not necessarily paid for. Major or long-term assets will be capitalized and charged
to the expenditure account with their costs spread out over a specified period of time. Furthermore,
accrual accounting also provides a consistent framework covering the identification of existing
liabilities, and potential or contingent liabilities.
This contrasts with the cash-basis accounting, under which revenues and expenditures are recognized
only when payment is received and made, respectively. Assets are expensed and future liabilities are
recorded when paid for, not at the time of incurrence. In other words, the main difference between
accrual and cash basis accounting is the timing of when revenue and expenses are recognized.
Accrual accounting in public finance management will incorporate financial statements style similar to
the private sectors in which will involve complete disclosure of assets and liabilities through balance
sheet and cash flow statements, revealing the real economic impact of fiscal management for
assessment. Thus, itwill help in driving the government towards a more comprehensive planning on
budget and expenditure by including information on the existing liabilities and future resources.
The decision to implement accrual accounting is notably a fundamental change to the way that
resources will be managed in the future. Beyond that, the main advantage to accrual accounting is the
ease of interpreting monetary information on government programs and activities, giving a whole
picture of financial commitments and accrued receipts, in comparison with cash-basis accounting
which only enables people to see payments made and cash gained within a short period of time. As a
result, it will certainly enhance transparency and accountability of the government in decisions made
and actions taken.
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The transition from cash-basis accounting to accrual-basis accounting involves 4 aspects of

implementation structure: standards and accounting policies, law and regulation, people, and lastly
process and technology.
The first 2 aspects set the platform for accrual accounting to operate accordingly. They are done by
mapping financial statement to international accounting standards, International Public Sector
Accounting Standards (IPSAS) issued by the International Federation of Accountants (IFAC), and
reviewing other relevant law and regulations pertaining to the accounting system. The accounting
policies are being developed to explain the way in which accounting information is measured, collated
and externally reported in accordance to the IPSAS requirements.
The 2 latter aspects are the prime levers to the actual implementation of accrual accounting. The
accounting personnel in the Accountant Generals Department as well as Ministries and other
government agencies are undergoing comprehensive capacity-building process to equip them with
relevant knowledge and skills. In addition, change management process is systematically applied in
order to empower personnel in coping with changes.
In the aspect of technology, the competency of the system vendor and consultants will be closely
monitored to ensure the deliverables and proposed timeline is on track. At the same time, the existing
system and processes are being analyzed and scrutinized to facilitate the development of a new
accrual accounting system. Other factors being considered are the system integration, in terms of
consistency and compatibility of technology platform being used.
Accrual accounting will indubitably provide higher-quality information with added depth to the
transparency and accountability of the public sector resources management. Such detailed information
enables program evaluation based on costing information, which is essential for Outcome-Based
Budgeting (OBB) in promoting sustainability of fiscal policies.
The efficacy and efficiency of Ministries programs can also be evaluated through synergistic
implementation of accrual accounting and Activity-Based Costing (ABC) by analyzing the full resource
impact together with the cash expenditure.
The implementation of accrual accounting ultimately will act as a complement for OBB and ABC in
strengthening the public finance management, as part of the strategic reform initiatives to revitalize
Malaysias economy and to be more responsive as well as accountable to the needs of Malaysian
citizens.
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The Government has set eight Strategic Reform Initiatives (SRIs) for the realization of the New
Economic Model (NEM) through the Economic Transformation Programmed. SRIs is set between
Strengthening the Public Sector. One Step Strategic Policy to strengthen the public sector is through
the fiscal discipline and reform.
For this purpose, Accrual Accounting System will be implemented to ensure a more prudent fiscal
management so as to implement the financial management of the public sector more effective and
comparable to developed countries. On May 11, 2011, the Honorable Dato 'Seri Najib bin Tun Abdul
Razak, Prime Minister of Malaysia has approved the implementation of accrual accounting starting in
2015 will be the basis of accrual accounting in the preparation of the financial statements of the
Federal Government as contained in the report of the New Economic Model. This is done so that
Malaysia par with the other developed countries in the context of an efficient fiscal management and
prudent.
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The Government is confident that with the implementation of accrual accounting would better explain
the concept accountability and integrity of the government in the management and expenditures of the
State through its financial resources. This policy will also be in line with the 1Malaysia concept of
"People First, Performance Now" that puts the interests of the people and performance now to achieve
the dream of becoming a high-income and developing countries.
Accrual accounting are expected to be used for the reporting year 2016. The implementation of
accrual accounting has been put under the responsibility of the Accountant General. Accountant
General's Department has developed the directions and proposals to change the accounting practices
of the public sector for the Malaysian federal government in the Strategic Reform Initiatives (SRI)
laboratory held February 21 to April 1, 2011. The process of transformation requires the Accountant
General to undertake a systematic and comprehensive diagnosis of the system and practices in place
to identify the specific needs of this transformation.
The current practice of providing government financial statements are Customization Cash
Accounting. Accounting system transition and transformation are expected to fully comply by 2015.
However, implementation has been postponed to 2016 to allow the drafting process of the Malaysian
Public Sector Accounting Standards (MPSAS) based on International Public Sector Accounting
Standard (IPSAS).
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2.0 FINDING & RESEARCH METHODOLOGY
2.1 Research Journal & Publication On Accrual Accounting
We have search for numerous research journal and publication on accrual accounting. There are quite
a lots of publication on accrual accounting issues (report, discussion, journal, articles). However there
are lack of publication on accrual accounting in context of Malaysia public sector since researches are
still on going and not yet published. Refer to references for listing of journal and publication reviewed.
Most of the journal and publication searching are using Google Scholar search engine. Whereas
others are from published articles from various accounting books.
2.2 Core Team & Accountant General Department Published Report & Published Articles
Accountant General's Department has set up a special unit to service the transition to accrual
accounting in the public sector. Accrual Accounting Implementation team is working to develop and
implement accrual accounting system of the Federal Government by the year 2016. Among the
functions of this section are:
Study, and set the police and the public sector accrual accounting standards
Review, to design, build, test and implement public sector accrual accounting system
Plan, coordinate and monitor the implementation plan of the public sector accrual accounting
Managing ICT infrastructure and technical requirements for the implementation of public sector
accrual accounting
Implement and Manage Uni-center Systems

Plan, develop and implement training programs accrual accounting
To operate and manage public sector accrual accounting documentation
Our group has received good cooperation in sharing information during and progress of this force
through the circulation of seminars and briefing notes.
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2.3 Implementation Readiness Questionnaire Accounting Changes among Federal Government

Financial Employees
One of the key success factors for the implementation of accrual accounting is the awareness of civil
servants in implementing accrual accounting this migration. Therefore, we conducted a survey among
financial employees of the Federal Government to identify their consciousness in implementing
accrual accounting within 6 months away.
The questionnaire that was developed by our own basis Likert Scale. We can only issue agreeness
stage in which elements are examined in the survey.
Elements under review in the questionnaire as the following:
Awareness & Readiness Government Employees Shift Towards New Accounting Landscape
Awareness Senior Management in applying MPSAS
The perception of government performance and accountability in applying the accrual
accounting system
Please refer to Appendix A for the results of the questionnaire.
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3.0 FINDING & DISCUSSION
3.1 Cash Vs Accrual Accounting System With Reference To Public Sector
The Federal Government has now adopted a modified cash basis of accounting is a method of
accounting that recognizes transactions and record something when cash received or paid during the
accounting period. Under this method, assets are not capitalized expenses and liabilities reported in
the financial statements, all expenses will use the current year provision and payment is made until
January of the following year. The implementation of accrual accounting in line with Public Sector
transformation policy in the new economic Model aimed at strengthening the prudent fiscal
management and enhancing the efficiency of financial management and accounting of the Federal
Government.
Difference with accrual accounting which recognizes transactions and recording at the time of the
transaction. In addition, all assets and liabilities also accounted for under accrual accounting. All the
transactions are reported in the financial statements for the financial year. To this end, the Department
Accountant General of Malaysia (JANM) will issue a Public Sector Accounting standards (MPSAS)
based on International Public Sector Accounting Standards (IPSAS). The difference between the
modified cash accounting with accrual accounting are as Figure 1.
Demonstrate a simple example of difference recognitions in both accounting method. It shows how
the government takes into accounts for the given situation with different accounting method:
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Cash Accounting Accrual Accounting

Your computer installation Under the cash method, you Under the accrual method,
business finishes a job in would record the payment in you would record the income
November, and doesn't get January in your November books.
paid until three months
later in January.
You purchase a new laser Using the cash method, you Under the accrual method,
printer on credit in May and would record a RM1,000 you would record the RM
pay RM1,000 for it in July, payment for the month of July, 1,000 payment in May, when
two months later the month when the money is you take the laser printer and
actually paid become obligated to pay for it.
Warnabes Sdn. Bhd. supply In expenses Expenses

2015,no immediately
stationeries to government recognized event though it is recognized in the government
in year 2015.The liability to the government. in 2016.Warnabes Sdn Bhd
government then pays The expenses will be will become account payable
Warnabes Sdn.Bhd.in year recognized in year to government.
2016. 2014,whenthepaymentmadeto
ABC Sdn.Bhd.
Government billed Jannah In revenue Revenue

2014,no immediately
for the quit rent year recognized even though it is recognized in the government
2014.Ahmad only pay for receivable to the government. even though no cash received
the quit rent bill in year The revenue will be in2014. Jannah will
2015. recognized in year 2014,when become account receivable to
the payment received. government.
Figure 1 :Example Of Government Recognition In Cash &

Accrual Accounting
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Malaysian Government is currently practicing Modified Cash

Accounting. Basically, Modified Cash Accounting is actually the same concept of cash basis
accounting but with severe modifications made to suit with the Malaysian Government nature of
Business.
Modified Cash Basis accounting enable payment for the accounting period to be made in the
month of January in the following year. For example, payment for transaction
made in between JanuaryDecember year 2014, could be paid in the month of January 2015. This
period of extension (January 2015) is known
as account payable or Akaun Kena Bayar (AKB). Even though payment for year 2014 is made
in January 2015 (during the extension period
or AKB) the transaction will be recorded and reported in year 2014 accounting period.
Treasury Instruction (TI) 56 specify the details for Akaun Kena Bayar. There are three (3)
condition that need to be fulfilled when make payment during the period of extension AKB:
st
i. Work or service have fully delivered & provided to the government on or before 31
December
ii. Sufficient allocation balance for the accounting period
st
iii. The payment is to be made on or before 31 January in the following accounting period
Work or service provided in year 2014 will be paid in January 2015 by using the allocation of year
2014.However, if the payment for 2014 being made in year 2015 using the allocation of year 2015,
then its not consider AKB anymore, and its fall under TI 58; payment requires special permission.
Even though both cash accounting and accrual accounting offers it owns advantages to public
sector, the implementation of accrual accounting seen give more benefits to the government in
term of accountability & integrity, performance evaluation, and accurate financial presentation. We
discussed the limitation of Modified Cash Accounting in para 3.2 and the benefit of accrual
accounting in para 3.3.
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There are lots of differences between cash and accrual accounting method. We summarized the
comparison between cash and accrual accounting as per Figure 2:
CASH ACCOUNTING ACCRUAL ACCOUNTING
Accounting which recognizes and Accounting which recognizes some

record some transaction and event transaction and event when it
when cash were received and happened and record in the
disbursed in the accounting period. accounting period.
REVENUE
Recognized /recorded only when cash Recognized /recorded for the period
received. earned.
EXPENSES
Recognized /recorded only when cash Recognized /recorded for the period it
paymentcarried out. spend /used.
FIXED ASSET
Charged to expenditure in the time it Recognized /recorded as long as age

purchase. period use andcapitalized.
LIABILITY
Not recognized/ recorded expenses at Recognized / recorded for the period it
the time physical cash is actually paid achieved or borne.
out.
Figure 2 : Summary Of Cash Accounting Vs Accrual Accounting
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3.2 Limitation Of The Modified Cash Accounting
Cash limit modification is that it is easier but the concepts are not familiar to the general public, such
as the wider use of accrual accounting in the trade. Modified cash accounting provides only basic
information, cash is easy to manipulate and therefore less thorough.
The objective of the move from cash to accrual reporting was to make the actual cost the
Government more transparent. For example, accrual accounting will see the right of atriums the cost
of pension Government employees for a period of time when they work and accumulated pension
rights with them, rather than this report as an expense which is not when they retired under the cash
system. Cash systems also allow government debt to be exceptionally designed such a way that all
interest expense paid in one lump sum at the end of a loan rather than propagated through the years
when a loan is exceptional, as is done under an accrual basis. These examples show how the focus
on cash only can interfere with the actual cost of government spending.
Alternatively, accrual accounting is generally more reliable than cash accounting in measuring the
financial performance and accountability challenges in dealing with the sovereign and risk
management. This explained the Government stance "s fight for accounting accruals." Moving to
accrual accounting has been set as the substance of the new economic Model (NEM) report.
Financial absorption would put the Malaysian public sector practices in line with the developed
countries.
In accounting accruals, economic events are recognized when they occur no matter when cash
transactions occur, means that economic events are recognized at the time where the transactions
occur rather than when payment is made (or accepted). Although accruals have been used in the
private sector for a very long time, it is not possible to simply adopt the accrual of the private sector in
the public sector in total. There are several unique issues that arises when the Government moved to
an accrual basis. The Government has several different types of assets and liabilities does not exist
in the private sector, including heritage assets, military assets, infrastructure assets and social
security programs. Type of assessment method used is also very important, especially in terms of
economic analysis.
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Need to also keep in mind that the treatment of social security programs, such as the elderly pension
program, General was contentious in an environment of an accrual basis. It is important to
emphasize that this does not refer to the treatment of servants "pension program. This is the
obligation of contracts and their treatment as a liability is clear-cut. These programs is a great
obligation for the Government in the future, particularly in the circumstances of an aging population.
Other cash accounting limit can be summarized as below:
It does not give full information on current assets accrued income such as royalties, for
example, fees, service charge, tax arrears and other
Comprehensive information not available about government liabilities (pensioned
commitment, interest payable, bills payable or depreciation for the replacement of assets)
it will ignore certain transactions by not recording the expenses were incurred but the
payment is not made for example supply made , payroll, telephone charges, interest arrears
and others and also the revenue earned but cash is not accepted for example license fee, the
services delivered (electricity, water etc.)
It does not misrepresent the full post of the financial position, namely information on assets
and liabilities cannot be used for fixed assets (land, buildings, machinery)
No information on capital work-in-progress such as dams, power plants, roads and bridges
and other possible.
It presents one of the income received, as tax receipts are recognized as income in advance.
No age weight given to the concept of "matching" which is a certain period expenses must be
deducted from earnings over the same period.
No disclosure of contingent assets and contingent liabilities which may turn out to be done.
Unit cost and the total cost of services provided by government departments such as health,
education, water supply, transportation cannot be determined (as depreciation, interest and
others not apportion able)
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3.3 Advantages of Accrual Accounting
Accrual basis accounting is more popular than cash basis accounting because it produces more
accurate, more faithful financial statements that constitute better representations of actual
circumstances than its main competitor. Since accrual basis accounting records revenues and
expenses together in the same time periods based on their causal relationships, it produces more
accurate gauges of entities' performance in any time period. By contrast, the use of cash basis can
lead to distortions due to the collection of cash and cash equivalents not aligning with the actual
timing of sales.
Financial reports prepared on an accrual basis allow users to:
assess the accountability for all resources the entity controls and the deployment of
thoseresources;
assess the performance, financial position and cash flows of the entity; andmake decisions
about providing resources to, or doing business with, the entity.
shows how a government financed its activities and met its cash requirements;
allows users to evaluate a governments ongoing ability to finance its activities and to meet
itsliabilities and commitments;
shows the financial position of a government and changes in financial position;
provides a government with the opportunity to demonstrate successful management of its
resources;
is useful in evaluating a governments performance in terms of its service costs, efficiency
andaccomplishments.
Accrual accounting provides information on an entitys overall financial position and current
stockof assets and liabilities. Governments need this information tomake decisions about the
feasibility of financing the services they wish to provide. Accrual accounting can provide financial
information on whether sub-entities are delivering specified services, and delivering them within
agreed budgets. The same information, at a more detailed level, can also be used within sub-
entities for the management of activity and program costs.
Accrual accounting allows an individual entity to:
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record the total costs, including depreciation of physical assets and amortization of
intangibleassets, of carrying out specific activities;
recognize all employee-related costs and to compare the cost of various types of employment
orremuneration options;
assess the most efficient way of producing their goods and services and of managing the
resourcesover which they have been delegated authority;
determine the appropriateness of cost-recovery policies; and
monitor actual costs against budgeted costs.
All this advantages can be conclude as below :
Give an overview of the financial position of the Government's more comprehensive and
accurate;
Increase Government transparency and accountability in the management of finance and
accounts;
Improve financial management and accounting of Government through good governance as
well as lead for value for money;
Increase the efficiency and effectiveness of the Government with the generation of
performance reports and financial statements in a more complete and comprehensive;
Measurement of the impact of the policy in a more effective manner through the
implementation of management accounting; and
Give better indicators in financial management prudent.
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3.4Countries That Have Implemented Accrual Accounting
ICELAND (1992)
KANADA (2002) SWEDEN(1994)
AMERIKA SYARIKAT
(1998)
AUSTRALIA(1995)
U.K(2000)
NEW ZEALAND (1992)
Figure 3 : Countries That Have Implement Accrual Accounting
Accrual accounting if being adopted in public sector, provide a better quality of information and a
better way of discharging accountability among the public sector managers.
Among the countries that have successfully adopted accrual accounting in their public sector are
United Kingdom, New Zealand, Australia, Canada, Colombia, France and United State of America.
The time taken for these countries to adopt accrual accounting are more than ten years since of
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the process of gathering, classifying of asset consume too much time. Only United Kingdom able to
make it in seven years followed by New Zealand which took 10 years.
Besides the success of the above countries, there are also countries meet failure in the accounting
transformation from cash to accrual such as Indonesian Government and Madagascar
Government. The causes of failure are in many reasons. One of the identified causes of failure in
Indonesian Government accounting reformation is the insufficient skilled government staff to
implement and operate the new accounting system.
3.4.1 The Move to Accrual Accounting
The use of accrual accounting is still unusual for most governments. Very few governments have
yet to adopt it, certainly at the national level. This first occurred in Chile in the mid-1970s under the
Pinochet regime. New Zealand followed suit in 1990 and the US federal government moved to
accrual based accounting in 1997, but US State and local governments are only now making the
change .By the year 2000, only three other central governments had adopted the accrual basis for
their annual financial accounts. Also by 2000, eight of the 30 most developed countriesmembers
of the OECD had not adopted accrual based accounting for any aspect of their public sectors.
The UK government moved to accrual based accounting in 20012002 as did Canada in the
following year. By the middle of 2003 only half the OECD countries had adopted accrual based
accounting for their central government accounts. In 2000, Malaysia and Tanzania were the only
non-OECD countries that were planning to adopt the accrual basis for their central government
accounts (according to an IFAC Public Sector Committee publication, Study11: Government
Financial Reporting, Accounting Issues and Practices, 2000). This is not now considered a priority
for Tanzania and the change is unlikely to take place there in the near future. South Africa is
actively following a programmed to change the basis of its public sector accounting to the accruals
over the next few years and this basis has already been adopted in Mongolia.
Several of the governments of the largest economies in the world have yet to introduce such
changes. The French National Assembly has agreed definite plans to make the change by 2005,
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but in Germany and Italy there are no such plans. Late in 2003 the Dutch government dropped its
plans to move the accounts of its national ministries to the accrual basis because of the costs
involved. Japan has decided not to introduce this reform in the near future.
3.4.2 The Introduction of Accrual Based Accounting In The UK Public Sector
The use of accrual accounting in the public sector is not an idea and the arguments for and against
its use has been finely balanced for at least 150 years. It was being used by some public sector
organizations as soon as it was developed in its current form in the private sector. Thus accrual
based accounting was introduced for UK local authority accounts from the mid- nineteenth century.
Birmingham City Council (the sixth largest economic entity in the UK at the time), for example,
adopted accrual based accounting from 1850. Accrual accounting was not generally accepted in
the public sector, however, and the cash basis of reporting was established by the Treasury (UK
equivalent of the ministry of finance) as part of the major reforms introduced in 1866. Thus it was
the cash basis which was used in the British colonies across the world over the next 100 years or
so.
By the end of the nineteenth century it had been adopted by most of the larger,Municipal
councils, although in the early years of the 20th century there was vigorous debate on its
suitability. Eventually all but the smallest local councils were required to adopt the accrual
basis of accounting after there-organization of local government in1974.
With the major reforms of the UK National Health Service in the early1990s the internal
market was adopted and hospitals were established as quasi-independent businesses
accounting on the accrual basis. At about the same time the move from the cash to the
accruals basis was agreed for central government.
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3.4.3 Experience of Other Countries, Which Prepare Appropriation Accounts Under The
Accrual System
In most countries, government needs funds for the purposes of the development from their
respective consolidated funds. Accordingly their legislatures authorize the appropriations through
according of approvals to the appropriations bills proposed by the concerned government. Once an
appropriation is authorized, an appropriation account is established, which disclose expenditure at
the same level of detail as in the estimates, to make amounts available for expenditure from the
Treasury. Various countries follow different types of appropriation. The different types of
appropriation accounts include:
Open Appropriation Account: An open appropriation account is an account that has

not had the balance transferred to a success or account or to surplus. The appropriation
in the account may be expired or unexpired.
Closed appropriation account: A closed appropriation account is an account that has
had the balance transferred to a success or account or to surplus. The appropriation in
the account is lapsed.
Successor Account: A success or account is an account established for the payment
of obligations applicable to appropriations for the same general purposes, but which
have either lapsed or been discontinued. A success or account is available in definitely
for the payment of obligations chargeable to any of its predecease or accounts. Further,
appropriation accounts may include not only accounts to which money is directly
appropriated, but also other funds. A fund, as used in connection with appropriations, is
a sum of money or other resources, usually segregated, to be expended or used for
specified purposes. Funds differ from appropriations in that they are usually permanent
In nature and do not expire unless they are revoked by the Parliament. Thus, in USA,
appropriation accounts are prepared for General Fund, Trust Fund and Revolving Fund.
Nevertheless, appropriation accounts as prepares in India, are similar to the system
followed in the Commonwealth countries like UK, Canada and Australia. Thus, in UK,
the Resource Accounts for each financial year are prepared and laid before Parliament
under the Government Resources and Accounts Act 2000. They show the extent to
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which there sources granted by Parliament through Consolidated Fund Acts (following
voting by the House of Commons on Estimates presented to it) have been used, and
are signed by senior civil servants from the departments concerned (Accounting
Officers). They are audited by the Comptroller and Auditor General. In addition to giving
his certificate that the financial statements give a true and fair view of the state of affair
so the audited department concerned and that expenditure has been
appliedforthepurposesauthorizedbyParliament,hemaymakeadditionalcomments on the
accounts.
3.5 The Risks of Moving To Accrual Based Accounting
Internationally, the limited experience of governments moving to the accrual basis of

accounting means that there are still a significant number of risks involved in adopting this
approach. These may include:
loss of financial control with the introduction of a more complex system
reduction in budgetary controlin the UK, expenditure in excess of budget occurred in
nearly one in five ministries, and Parliament has retained cash reporting in addition to
accrual information to monitor governmental expenditure
diversion of resources from more productive reforms
the possibility of government accounting being brought into disrepute if accrual
accounting fails
the possibility that international accounting standards could be applied with no real
understanding of the issues involved, especially as they are principles-based standards
the gaps in the standards not being properly addressed
the standards not being continually made up to date and relevant
decisions on accounting treatment being made on political grounds
the external auditor being unable to prevent politically-based amendments to the accounts
the IT systems not being adequate
the process of financial management and expenditure control being made more difficult
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for members of Parliament and

members of Parliament, the government, staff of theministryof finance and other
ministries and the external auditors not being given enough training
an adequate time scale and budget not being allowed for the change.
Status of implementation of accrual accounting is monitored by a main Committee that is Steering

Committee (CMC) Accrual Accounting which is chaired by the Accountant General of Malaysia
(ANM). CMC is also supported by three working committees: Accrual accounting standards Advisory
Committee (GASAC) system development Working Committee, the Implementation Committee at the
Ministry level, effectiveness and sustainability of the implementation of accrual accounting is
supported by the Committee the implementation of Accrual Accounting to ensure the implementation
of accrual accounting is implemented according to plan. Accrual Accounting Governance structure is
as shown in figure below.
PSA522 Page 23
3.6 Accrual Accounting Integrating With Outcome-Based Budgeting and Activity-Based

Cost of the Malaysian Public Sector Perspective
a) Public Sector Accounting; A Way Forward
The Economic Transformation Programme (TTP) comprises of several Strategic

Reform Initiatives (SRI) and also proposal from the National Economic Advisory
Council (NEAC), was part of the effort and aspiration by the Malaysia government to
achieve the New Economic Model (NEM). Following to the SRI dated from 21
February to 1 April 2011, the Accountant Generals Department (AG) has proposed to
the Government to migrate the present accounting system to accrual accounting. With
that, on the 11 May 2011, YAB Prime Minister of Malaysia has endorsed the accrual
accounting implementation started from 2015 as part of the 21 SRI Public Finance
initiatives.
The adoption of accrual accounting will set the new paradigm of Malaysia public
sector finance practices which in-line with the other developed countries. However, the
move will resulted several challenges, as stated by the speakers during the National
Public Sector Accountants Conference (NAPSAC 2011) jointly organized by the
Malaysian Institute of Accountants (MIA), Accountant Generals Department (AG) and
Persatuan Akauntan Sektor Awam Malaysia (PERASAMA) in Kuching, Sarawak from
6 - 7 June 2011.
Fundamentally, the success of the accrual accounting in Malaysia depends on several factors
as follow:-
(i) Complete record;

(ii) Competent human resource;
(iii) Sufficient fund; and
(iv) 100% commitments throughout the implementation.
In relation to the competent human resource, YBhg Dato Rosini Abd Samad, Deputy
Accountant General Malaysia (corporate) states that:-
PSA 522 Page 24

As a result of the initial lack of awareness in accrual accounting with its attendant
benefits and costs, policies and standards, we need to BUILD CAPACITY for staff in the
Accountant Generals Department as well as in the respective Ministries and agencies 1
However, Prof. Dr. Andreas Bergmann, Chairman from International Public Sector
Accounting Standards Board addressed different view during the NAPSAC 2011 as
follow :-
In Malaysia, with its strong accounting profession, human resources are less
of an issue than elsewhere. I think completeness of assets and liabilities registers in
all entities is the key challenge here.
It should be recognized that the adoption of accrual accounting in Malaysia will assist
in the rigorousness of performance reporting of the programmed since it can provide
multiple reporting dimensions from which managers can make better and informed
decisions. The combination of the accrual accounting and Activity-Based Costing
(ABC) approach can help to evaluate the efficiency and effectiveness of programmed
in pursuing the respective outcomes. Hence, the cost information will provide better
understanding and options evaluation in the provision of public services such as
healthcare and education.
An important element of accrual accounting is that the costing of resources can be

calculated, which is essential to the effectiveness of Outcome-Based Budgeting in
promoting the sustainability of fiscal policies. It will also add depth to the accountability
and transparency of the management of public sector resources, which explained by
Mr Thomas who are the Head of Project Team, OBB Project Team, Ministry of
Finance.
To add to the above, Mr Koshy Thomas, also stated that:-
PSA 522 Page 25

Accrual accounting provides the data and information that will enable it to
generate costing information for programmed evaluation2
In essence, the accrual accounting adoption provides more effective fiscal

management in terms of accountability, sustainability, better measures of policy effect,
organizational effectiveness and efficiency which may promote greater integrity.
b) Outcome Based Budgeting (OBB)
Malaysia has embarked the Outcome Based Budgeting (OBB) implementation which accrual
accounting complements OBB as an effective fiscal management tool. Hence, accrual
accounting will set the platform for the implementation of Activity Based Costing.
c) Case for change:-
i) Accrual accounting will facilitate the costing of resources, which is essential to the
effectiveness of OBB in promoting the sustainability of fiscal policies;
ii) Accrual accounting will add depth to the accountability and transparency of the
management of public sector resources;
iii) Financial markets and credit rating agencies are particularly interested in the
sustainability of financing and expenditure policies. The IMF contends that accrual
financial statements provide greater information for analyzing the sustainability of fiscal
policy and the quality of fiscal decision making;
iv) The adoption of accrual accounting in Malaysia will assist in the rigorousness of
performance reporting of the programmed since it can provide multiple reporting
dimensions from which managers can make better and informed dimensions;
PSA 522 Page 26

v) Accrual accounting provides the data and information that enables to generate costing
information for program evaluation. ABC approach can help to evaluate the efficiency
and effectiveness of Ministries programs in pursuing the respective outcomes. The cost
information can help to evaluate the options to the provision of public services such as
healthcare and education;
vi) Refer Figure 4: Summary of the integrating and transformation phases from Modified
Cash Basis to Outcome- Based Budgeting to Accrual Accounting;
Figure 4: Phase Transformation
"Malaysia is expected to fully switch to accrual-based accounting by 2016", "where assets and
liabilities are fully taken into account. It will have a centralized system with a single database
and is fully integrated with the Outcome-Based Budget (OBB) and other systems relate.
Accruals accounting with activity-based cost (ABC) will convert existing data to information and
ultimately to knowledge in which decisions and actions are better informed can be taken, he
said.
PSA 522 Page 27
Accrual accounting provides the data and information that will enable it to generate costing
information for programmed evaluation. The adoption of accrual accounting in Malaysia will
assist in the rigorousness of performance reporting of the programmed since it can provide
multiple reporting dimensions from which managers can make better and informed decisions.
Using accrual accounting together with the Activity-Based Costing (ABC) approach can help to
evaluate the efficiency and effectiveness of programs in pursuing the respective outcomes. The
cost information can help to evaluate options in the provision of public services such as
healthcare and education. In other words, Accrual accounting will facilitate the costing of
resources, which is essential to the effectiveness of Outcome-Based Budgeting in promoting the
sustainability of fiscal policies. It will also add depth to the accountability and transparency of the
management of public sector resources.
3.7 New Strategy & Current Development For Implementation of Accrual

Accounting in Malaysian Public Sector
Accrual accounting will be fully implemented in the public sector in 2016. This means that only
six months longer for transitions. This year the implementation of accrual accounting
transformation challenge needs to be faced with harder, especially in the public sector who are
involved with financial management Responsibilities nor the central accounting office. Ministry
of finance, by letter dated 27 October 2014 has decided to make the implementation of accrual
accounting for the Government will be determined according to the date of publication of the
relevant law, after a trial period of 2015. This policy decision is made to take into account
aspects of risk management in the implementation of accrual accounting. Among Financial
Procedure Act amendment to the 1957 and other related Act that have not been approved in
Parliament. In addition to readiness and achievements of Ministry is still low.
As the Accountant General of Malaysia as a "lead agency", responsible for coordinating

activities in the implementation of accrual - Ministry of the probationary period. Based reform
strategy will involve the implementation of dry run that allows applications 1GFMAS
system thoroughly tested with the full input of the process through to final output and report
PSA 522 Page 28

accurate financial statements will be generated and comprehensively as planned. This

comprehensive early preparation is essential for resolving all issues related to the application
1GFMAS system before implementation.
In addition, the implementation of continuous training plan accounting is still carried out,
among others, basic concepts of accrual accounting, accrual accounting policies and standards
(MPSAS), Manual Accrual Accounting (MPA) and Accrual Accounting Chart (CAA) and the
Financial Documents 1GFMAS.
1GFMAS Work Procedure Manual will be an important document for all users 1GFMAS in
finance and accounting duties either as Responsibility Center (RC) or Accounting Office (PP).
A total of 396 standard operating procedure (SOP) which was identified by 13 types of modules
in the Asset Accounting module 1GFMAS them, Accounts Payable, Accounts Receivable,
General Ledger, Activity Based Accounting and others.
By the year 2016, the implementation of accrual accounting (PPA) through the Policy and
Standards Unit has established MPSAS Based Task Group to study and recommend a
procedure for accounting for School Fund (KWS) in accordance with the requirements of
accrual accounting implementation and compliance with financial regulations in force. This
figure shows the change in the accounting treatment that has been recommended by
Government Accounting Standards Advisory Committee (GASAC) and approved by the
Steering Committee of Accrual Accounting (DFA) No. 1/2015 dated January 29, 2015.
Kumpulan Wang Sekolah Kumpulan Wang Sekolah
KWS terdiri daripada 3 Kumpulan Wang Satu akaun amanah Kerajaan
Kump Kump Kump (S.10 FPA 1957)

Wang Wang Wang
Kerajaan SUWA Asrama AKAUN AMANAH XX (BAHARU)
Figure 5 : The changes in accounting treatment of School Fund
PSA 522 Page 29

This team has also secured PPPA formulation 35 MPSAS adapted from the International Public
Sector Accounting Standards (IPSAS). The status of formulation of 17 March 2015 MPSAS until
portrayed through this figure.
38 International Public
Sector Accounting 24 approved
Standard (IPSAS) 24 MPSAS had MPSAS issue
been approved by the
by JKP International
Federation of
Accountants
3 IPSAS irrelevant for 6 exposure (IFAC)
35 IPSAS will be
adapted (IPSAS 15 10 drafts in the
adopted to MPSAS
& 18) approval
5 IPSAS in
process of
adaptation and
preparation of
Exposure Draft
Figure 6: Current Status MPSAS
The Government is also now in the process of improvement of the process of ' to be '
1GFMAS. The process of ' To Be ' 1GFMAS has already been finalized in meetings of the
Steering Committee on an accrual basis Accounting No 1/2010 dated January 19, 2013.
However, as a result of further discussion, improvements to the workflow process of ' To Be
' 1GFMAS to process RECEIPTS and PAYMENT ORDER without PT has been made and
approved at the meetings of the Steering Committee on an accrual basis Accounting No
1/2015 dated 29 January 2015. Refer to the extract of the article Focus Accruals No 5
Issue.
PSA 522 Page 30

Figure 7 : Proses To Be
PSA 522 Page 31

In addition, there are a number of activities are being carried out by the implementation of
Accrual Accounting in the realization of this accounting accruals in 2016. Among them;
Program Town hall with Accountant General (AG). This program opportunities in
communication of two (2) semi-formal way in between. Dato ' AG with Division Director and
Chief Accountant at JANM ministries to meet the challenges of implementation of Accrual
Accounting. This programmed is carried out on 5 March 2015 (Thursday) at Banquet rooms 1,
level 8, JANM attended by Director/Representative Director at JANM and Chief
Accountant/Senior Accountant in the Ministry. This program is effective because Dato ' AG can
communicate directly with each part of JANM and in particular with all ministries regarding their
views and ideas towards the success of the implementation of Accrual Accounting.
Department of Accountant General of Malaysia have been invited to participate in an exhibition

in conjunction with the ASOSAI Assembly held on 10 to 13 February 2015 at The Royale
Chulan Hotel Kuala Lumpur organized by the auditor. ASOSAI is a regional organization with 47
Member, represented the Auditor General, was established to enhance the professionalism of
Auditors of Government through the exchange of knowledge, experience and skills related to
government auditing.
One booth dedicated to JANM equipped with information relevant to the implementation of
Accrual Accounting of the Federal Government. This Assembly was officiated by YAB Dato ' Sri
Mohd Najib bin Tun Abdul Razak and he had to spend time visiting the booth JANM. This
gathering also attended by 200 participants from the Member countries as well as
representatives from International Organizations Audit Institutions (INTOSAI), the Organization
of National Audit (EUROSAI) European and National Audit Organization Africa (AFROSAI) have
the opportunity to visit the booth JANM.
During the year, data migration activities continued with a Mock Run 3 commenced in February
2015, involving data assets and liabilities as at 31 December 2014. Data Migration Activities
Preparatory briefings (Mock Run 3) was held with all representatives of the ministries and
State/Branch JANM at 15 and 19 January 2015. This briefing is intended to explain in detail
about the activities of Mock Run 3 and the action to be taken by the parties involved. In January
PSA 522 Page 32

2015 Up Front Validation Checking activities were also held in preparation for the early
detection of errors that may be contained within a template data collection assets and liabilities
before uploading data activities of Mock Run a real run on 3 March 2015.
Here attached timeline implementation of accrual accounting which has been fully implemented
by up to successfully ' Go Live 1GFMAS
Figure 8 : Timeline Process
PSA 522 Page 33

4.0 CONCLUSIONS
The purpose of accrual concept is to make sure that all revenues and costs are
recorded in the appropriate statement at the appropriate time period. Costs
concerning a future period must be carried forward as a prepayment for that period
and not charged in the current profit statement. For example, payments made in
advance such as the prepayment of rent would be treated in this way.
Therefore, accrual basis of accounting helps in reflecting true picture of expenditure in

an accounting period. For example, one of the parameters in government for
performance evaluation of a department could be per unit cost of service. Accrual
basis of accounting helps in quantifying the cost correctly, which is the key
requirement for estimating per unit cost of service.
However, there are some issues to be addressed at the time of transition to accrual
accounting. First, preparation of the first Balance Sheet under accrual basis
accounting. The decision on the format of financial statements on migration to accrual
accounting and generation of first set of financial statements is of key importance in
transition. The format has to facilitate transparent, accurate and complete depiction of
financial position. Checks and balances have to be in place to ensure appropriate
measurement and recording of accounting data.
Issues like preparation of Assets register and valuation of assets have to be

addressed. Internationally the role of auditor has been significant in ensuring a smooth
transition to accrual basis of accounting. Auditors may be helpful in framing the
accounting policies on assets and liabilities, recognition of revenues and expenses,
citizens net worth, reporting period and measurement basis.
Second issue is in accruing revenues. Accurate information of revenues is essential

for assessing the impact of taxation and other revenues on the Governments fiscal
position, in assessing the need for borrowing in the long term and also to assess
PSA 522 Page 34

whether current revenues are sufficient to cover the costs of current programs and
services. It is necessary to take a decision on the types of revenues that are capable
of accruing with reasonable degree of certainty. In case there are few line items that
are not suitable for accruing, they may be continued under cash basis accounting. The
decision in this regard has to be taken by government.
If the government resist to transform today, one day the accrual accounting will still
need to be implemented since they are growing demand for a greater transparency
and better performances of the government sector.
PSA 522 Page 35

5.0 RECOMMENDATION
To overcome the above issues, we suggest to implementing accrual accounting at a

local level first and only later transfer the implementation of accrual accounting to the
national government. The advantage to taking this approach is that lessons can be
learned from the local implementation to be incorporated into the approach for making
that transition at a national level.
Under this approach, it is important that at the local level similar principles are followed
by all bodies to retain consistency and transparency.
The results show that the use of accruals principles for certain areas is significantly
behind other areas. The most common example is the recognition of tax revenues
which for many countries is still on a mainly cash basis where the rest of the financial
statements are on an accruals basis.
This would appear to be due to the challenge in finding an appropriate accounting

policy. In contrast, the recognition of operating income and expenses on an accruals
basis is a much simpler concept to implement. We would recommend that Malaysian
government deciding to implement the accruals basis, they give early consideration to
the best way to incorporate such challenging areas into the accruals based financial
statements.
There is significant scope under the accruals principles for interpretation. Government
must adapt those principles to the circumstances. A common example is whether to
value assets at historic cost or whether to revalue those assets to fair value. This is a
choice under the available standards on asset accounting. However, it is in the area of
the debatable cases that the significant inconsistencies appear. We takes the view
that it is important to have a common set of standards employed by all, and supports
principles based accounting allowing for application taking into account the specific
national circumstances.
There has been much recent debate about the need for a public sector Conceptual
Framework. It is undeniable that such a framework could assist preparers of accounts,
in particular for situations where no defined accounting standards exist and therefore
PSA 522 Page 36

assist public sector administrations in preparing their financial statements. Improved

consistency would also enhance one of the main objectives of any financial
statements which accounts are comparable over time and between organizations
enabling an assessment of the performance of the public sector to be made.
PSA 522 Page 37

6.0 REFERENCES
6.1. A Case Study of Governmental Accounting & Budgeting Reform At Local Authority in
Indonesia: An Intuitionalist Perspective Ali Djamhuri (USM 2009)
6.2. Accrual Accounting: Concepts, Standards and Implementation James L.Chan (University
of Illinois at Chigago, University of Cagliari)
6.3. Adoption of Accrual Accounting in Local Authorities in Kedah Darul Aman Ropidah Omar,
Nor Afza Aman, Norhan Ariffin (UUM)
6.4 Public Sector Accounting: Malaysian Context: 4th Edition Author: Fatimah Abd Rauf And
Others
6.5.Audit Negara Web -

http://www.audit.gov.my/intranet/images/pdf/bank_pengetahuan/2011/slide%2520utama%2520
melayu_11072011%25202.pdf+Ho
6.6.Survey & questionnaire tools-

http://freeonlinesurvey.com/s.asp?sid=c65oyz2bezgcrnd134474
6.7.Is The Move to Accrual Based Accounting A Real Priority for The Public Sector Accounting
? Any Wynne (ACCA, Jan 2004)
6.8.Jabatan Akauntan Negara Malaysia - http://www.anm.gov.my
6.9.Jabatan Akauntan Negara Malaysia - Laporan Tahunan 2011
6.10.Managing The Transition To Accruals In The Public Sector Gillian Fawcet (ACCA)
6.11.NSW Public Sector Accounting: Why Did It Happen And Has It Mattered ? Mark
Christensen
6.12.Pemandu http://etp.pemandu.gov.my/Public_Finance_Reform-@-
Accrual_Accounting.aspx
6.13.Persatuan Akauntan Sektor Awam Malaysia -
http://www.perasama.org.my/km/Panel_2_Rosli_Abdullah.pdf
6.14.Persatuan Akauntan Sektor Awam Malaysia -

http://www.perasama.org.my/km/Panel_2_Koshy_Thomas.pdf
PSA 522 Page 38

6.15. Persatuan Akauntan Sektor Awam Malaysia -

http://www.perasama.org.my/km/Session_1_Datuk_Wan_Selamah.pdf
6.16.South Asian Federation of Accountants (SAFA): A study on accrual-based accounting for

government & public sector entities in SAARC Countries
6.17. Accountants today (August 2011, Vol 24 No. 6 Page 9 & 16)
PSA 420 Implementation of Accrual Accounting in the Malaysian Public Sector
6.18. 1Pekeliling Perbendaharaan PS 1.2/2013 1Pekeliling Perbendaharaan- Pelaksanaan

Perakaunan Akruan Kerajaan Persekutuan
6.19 http://www2.anm.gov.my/akruan/Pages/default.aspx
6.20 Journal Fokus Akruan Isu 1-5
6.21. http://www.accountingtools.com/cash-method-of-accounting
6.22. http://smallbusiness.chron.com/
PSA 522 Page 39

Implementation of Accrual Accounting in Malaysian Public Sector

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IMPLEMENTATION OF ACCRUAL ACCOUNTING IN THE

MALAYSIAN PUBLIC SECTOR

PSA522 - PUBLIC SECTOR ACCOUNTING

SITI NUREADAH BINTI MD ARIS 2013245966

NORA BINTI ISMAIL 2013463134

NUR FADILAH CHIN BINTI ABDUL HALIM CHIN 2013497676

NORHAKIMAH BINTI MOHD NOOR 2013431642

NUR AMALINA BINTI AZIZ 2013270966

TITLE PAGE NUMBER

Accrual accounting is an accounting method that recognizes an economic event as it occurs,

The transition from cash-basis accounting to accrual-basis accounting involves 4 aspects of

2.0 FINDING & RESEARCH METHODOLOGY

2.1 Research Journal & Publication On Accrual Accounting

Implement and Manage Uni-center Systems

2.3 Implementation Readiness Questionnaire Accounting Changes among Federal Government

Elements under review in the questionnaire as the following:

Please refer to Appendix A for the results of the questionnaire.

3.0 FINDING & DISCUSSION

3.1 Cash Vs Accrual Accounting System With Reference To Public Sector

Cash Accounting Accrual Accounting

Warnabes Sdn. Bhd. supply In expenses Expenses

Government billed Jannah In revenue Revenue

Figure 1 :Example Of Government Recognition In Cash &

Malaysian Government is currently practicing Modified Cash

CASH ACCOUNTING ACCRUAL ACCOUNTING

Accounting which recognizes and Accounting which recognizes some

Charged to expenditure in the time it Recognized /recorded as long as age

Figure 2 : Summary Of Cash Accounting Vs Accrual Accounting

3.2 Limitation Of The Modified Cash Accounting

3.3 Advantages of Accrual Accounting

Financial reports prepared on an accrual basis allow users to:

Accrual accounting allows an individual entity to:

All this advantages can be conclude as below :

3.4Countries That Have Implemented Accrual Accounting

NEW ZEALAND (1992)

Figure 3 : Countries That Have Implement Accrual Accounting

3.4.1 The Move to Accrual Accounting

3.4.2 The Introduction of Accrual Based Accounting In The UK Public Sector

Open Appropriation Account: An open appropriation account is an account that has

3.5 The Risks of Moving To Accrual Based Accounting

Internationally, the limited experience of governments moving to the accrual basis of

for members of Parliament and

Status of implementation of accrual accounting is monitored by a main Committee that is Steering

3.6 Accrual Accounting Integrating With Outcome-Based Budgeting and Activity-Based

a) Public Sector Accounting; A Way Forward

The Economic Transformation Programme (TTP) comprises of several Strategic

(i) Complete record;

PSA 522 Page 24

An important element of accrual accounting is that the costing of resources can be

To add to the above, Mr Koshy Thomas, also stated that:-

PSA 522 Page 25

In essence, the accrual accounting adoption provides more effective fiscal

b) Outcome Based Budgeting (OBB)

c) Case for change:-

PSA 522 Page 26

Figure 4: Phase Transformation

3.7 New Strategy & Current Development For Implementation of Accrual

As the Accountant General of Malaysia as a "lead agency", responsible for coordinating

PSA 522 Page 28

accurate financial statements will be generated and comprehensively as planned. This

Kumpulan Wang Sekolah Kumpulan Wang Sekolah

KWS terdiri daripada 3 Kumpulan Wang Satu akaun amanah Kerajaan

Kump Kump Kump (S.10 FPA 1957)

Figure 5 : The changes in accounting treatment of School Fund