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Implementing Accrual Accounting for Improved Governance in Sabah Government
Last modified: 2017-07-12
Abstract
Malaysia is in the process of implementing accrual accounting and targeted will fully adopted accrual accounting by 2020 as our Prime Minister Dato’ Seri Mohd Najib Bin Tun Razak mentioned. As for current practice, Malaysian Government still using modified cash basis to account all government financial transactions including thirteen (13) states government in Malaysia. The focus of the study will be Sabah State Government which is still using modified cash basis. The evolution and reform of public sector accounting to accrual accounting makes Sabah State Government need to be prepared and aligned with Federal Government vision and policy. The objectives of this study are to determine the challenges in implementing accrual accounting and to find out what initiatives have been taken by Sabah State Government in implementing accrual accounting in Sabah State Government. The method of research in this study is by way of interviewing senior officers in Sabah State Treasury Department, Computer State Services Department and National Audit Department (Sabah Branch) that involved directly in the discussion and process of implementing accrual accounting in Sabah State Government.. The findings from this research showed that human resource, accounting information system, training, top management commitment, cultural in public sector and policy become challenges in implementing accrual accounting in Sabah State Government. This study is significance to help Sabah State Government in identifying all the challenges in implementing accrual accounting to reduce the impact from implementation of accrual accounting and as a literature from the view of practitioners
Keywords
Public Sector, Sabah State Government, Accrual Accounting, Implementing, Reform, Challenges.
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