Malaysian Journal of Business and Economics

Vol. 1, No. 2, December 2014, 63 76

ISSN 2289-6856 (Print), 2289-8018 (Online)

Accrual Accounting in Malaysia: What We Should Learn from Others

Rozaidy Mahadia,*, Raman Noordinb, Rasid Mailc and Kaziemah Sarimand

abcd
Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, Malaysia

Abstract

Like any other reform, implementation of accrual accounting in the public sector will
be challenging. To prepare for eventual adoption of accrual accounting, there must
be change in management where the structured approach for organization change
is supposed to take place. The shift towards accrual accounting demonstrates some
difficulties and challenges. This paper examines the issues and challenges faced by the
New Zealand, Australia and United Kingdom in implementing accrual accounting in the
public sector. In doing so, a revision of previous literatures in regard of implementation
of accrual accounting in the respective countries were conducted in advocate the
research issues. The findings showed that the shift towards accrual accounting
demonstrates some difficulties in implementation such as recognition and valuation
of assets and liabilities, human competency and, high implementation costs. These
implementation barriers are one of many reasons why developing countries should
be careful in considering accrual accounting reforms. Being the pioneer countries in
the implementation of accrual accounting in public sector, the experiences of New
Zealand, Australia and United Kingdom may assist countries especially Malaysia in
moving towards accrual accounting reform.

Keywords: public sector accounting, accrual accounting, Malaysia

1 Introduction
Migration from cash accounting to accrual accounting has been stipulated as one of the
policy measures in the New Economic Model (NEM)1 as a mean to improve decision-
making processes and strengthen public finance management of Malaysian public
sector (Raja Abdullah, 2010). According to Datuk Wan Selamah, Accountant General
of Malaysia, this will put the public sector of Malaysia in line with developed countries.
On 11 May 2011, the Prime Minister of Malaysia mandated the implementation of
accrual accounting by 2015 (Pasukan Pelaksanaan Perakaunan Akruan [PPPA], 2013a).
The implementation of accrual accounting will contribute to a more prudent fiscal
management and can enhance the effectiveness of the financial management of the
public sector (Accountant Generals Department of Malaysia, 2013).
1
New Economic Model (NEM) outlined the strategies to transform Malaysia to become a high-income country. The
goal of NEM is for Malaysia to be a developed country, whose people enjoy high quality of life with high level of
income resulting from growth that is both inclusive and sustainable by 2020 (National Economic Advisory Council,
2010). To achieve the goals of NEM, there are 8 Strategic Reform Initiatives (SRIs) outlined in the Economic
Transformation Programme (ETP) which include strengthening public sector (Raja Abdullah, 2010).

*Corresponding author Tel: +60 88 321626; Fax: +60 88 320360

E-mail address: zaidy@ums.edu.my (Rozaidy Mahadi)
 Accrual Accounting in Malaysia: What We Should Learn from Others

All federal ministries and departments will be moving to accrual in 2015

and will be closely followed by the state governments in 2016 (International Public
Sector Accounting Standards Board [IPSASB], 2013). IPSASB has identified four
main areas to be focused on for the success of implementation of accrual accounting
namely policies and standards, laws and regulations, process and technology and
human resources. The scope of services is include data collection for assets and
liabilities, preparation of accrual accounting manual, proposed and implement
change management plan, and implementation of data collection training and accrual
accounting manual training (Accountant Generals Department, 2013).

The journey towards accrual accounting has been challenging where

commitment, full support and cooperation from everyone is needed to make this
transition meet its objectives. Despite all the efforts put in place, the transition of
management styles has always cause turbulence within the organization. Thus, this
study conducted in identifying what are the issues and challenges faced by the policy
executer in implementing accrual accounting among the pioneer countries and what
are the impacts of accounting reforms to them. The previous literature showed that the
main issue that disrupted the flow of transition is how the implementers (the pioneer
countries) ensure the level of knowledge and skills of the employees are sufficiently
equipped to handle the new set of accounting regulation and information.

The readiness of accounting information systems applications such as the

software customization, systems familiarization and lack of equipment has a significant
impact on the systems migration process. Besides that, issue in choosing the right
accounting evaluation and recognition standards has slowing down the speed of the
transition. To combat these issues, the implementers have prepared various strategies.
Such as, training program, systems synchronization, standards harmonization, and
engagement with other stakeholders are among the strategies taken by the implementer
in corresponding with the issues raised.

This paper starts with a short revision of previous literature about the
implementation of accrual accounting and the issues surround the development and
implementation of accrual accounting in several the New Zealand, Australia and
United Kingdom. Then followed with a discussion and ended with conclusion.

2 Research Methodology

This research is a revision of previous studies in regard of the implementation of

accrual accounting in three countries namely, New Zealand, Australia and United
Kingdom. A collection of literatures were reviewed and analyzed, as a result, several
keys issues regarding the research subjects were identified and summarized. The keys

64 MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online)
 Rozaidy Mahadia, Raman Noordin, Rasid Mail & Kaziemah Sariman

issues will be divided into two parts. First part will be concentrated in discussing the
issues and challenges faced in implementing accrual accounting in the respective
countries. Second part will be elaborating about the impacts experienced by those
countries while implementing the accounting reform.

3 Literature Review

Over the last two decades, we have seen greater demands for accountability in public
sector where there are significant increasing number of governments around the world
employing accrual accounting for financial reporting and budgeting purposes (Chan,
2003; Champoux, 2006). Accrual accounting is said to be beneficial for the governments
as it can provide more information for decision makers, leads to a better decision making
(Conolly and Hyndman, 2010) and enhances efficiency, effectiveness, transparency and
accountability (Guthrie, 1998; Chan, 2003; Ron and Mellet, 2003; Barton, 2005; Nistor
et al., 2009; Monteiro and Gomes, 2013). Traditionally, cash accounting is being used
by many governments throughout the world (Van Der Hoek, 2005).

Some of the deficiencies in using cash accounting are failure to accurately

represent the amount of resource usage and failure to recognize future commitments,
guarantees and other contingent liabilities (Ball et al., 2004). Cash accounting does not
provide information on how the resources controlled by an entity, the cost of providing
goods and services and other financial information for assessing financial position of an
entity (Arnaboldi and Lapsley, 2009; Lapsley et al., 2009). Accrual accounting on the
other hand provides this kind of information which helps to provide a better overview
of the governments financial activities and financial position (Rowles, 2004; Sevic,
2006; Nesbakk, 2011).

The call for action to strengthen public sector accounting became the attention
of many governments throughout the world where New Zealand and Australia are
frequently cited to have the most comprehensive accrual accounting adoption than any
other countries (Tiron Tudor and Mutiu, 2006; Nistor et al., 2009). Other countries
such as Sweden, Spain, France, Netherlands, Brazil, Romania, Indonesia, Malaysia
and many more countries followed suit thereafter. The shift to accrual accounting in
Malaysia is made by Prime Minister YAB Datuk Seri Mohd Najib Tun Abdul Razak
as the Federal Government of Malaysia is set to adopt full accrual-based accounting
for financial reporting by 1 January 2015 (Gomes, 2013). This is one of the initiatives
for Malaysia to be a developed country, whose people enjoy high quality of life with
high level of income resulting from growth that is both inclusive and sustainable by
2020 (National Economic Advisory Council, 2010).

MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online) 65
 Accrual Accounting in Malaysia: What We Should Learn from Others

According to Gomes (2013), issues and challenges are inevitable wherever

change is instituted. Despite the fact that many countries have moved to accrual
accounting, objections and arguments continued to be raised by critics. To ensure the
success of accrual accounting reform, Malaysia needs to look at the issues and concerns
in adopting accrual accounting in public sector. The following section starts with a
brief background about the implementation of accrual accounting in New Zealand,
Australia and United Kingdom. The discussion continued with the issues and challenges
in adopting accrual accounting as experienced by those countries that had moved to
accrual accounting are discussed and followed by the impacts of accrual accounting
adoption in pioneer countries namely New Zealand, Australia and United Kingdom.

The Implementation of Accrual Accounting- A Background

1 New Zealand

The implementation of accrual accounting in New Zealand took place along with
economic reforms. Those changes began in the mid-1980s with the introduction of
privatization and corporatization of government-owned commercial entities as well
as an abolishment of New Zealands currency and financial markets (Pallot & Ball,
1996). After that, the government wanted to enhance performance and accountability
in its remaining public commercial entities by adopting modern management practices,
such as giving tougher personnel authority to chief executives (entity heads) and also
wielding performance-based executive assessments (C. Mark, 2006).

Up to 1989, New Zealands budgeting practice was based on a cash accounting

system (C. Mark, 2006). With the approval of Public Finance Act of 1989, New
Zealand amended the governments budgeting process into output-based systems,
and also demanded that the entire budgeting and reporting were done using accrual
methods (C. Mark, 2006). As a result, the Parliament is aware with the full costs of
the outputs and measure up to costs with private suppliers (Pallot & Ball, 1996). In
addition, to ensuring department reporting and budgeting based on accrual measures,
the Public Finance Act required accrual-based performance assessments (New Zealand
Treasury, 2005). Later in 1992, New Zealand tabled its initial fully accrual-based
comprehensive financial statements, known as the Crown financial statements (Pallot
& Ball, 1996).

The accrual-based reforms in New Zealand are debatably the most comprehensive
that any country has undertaken to date (GOA Report, 2000). The GAO reports that,
in general, most observers seem to agree that the accrual measures have provided
better information for purposes of asset management and cost calculations (GOA
Report, 2000). Since embarking the transitions, New Zealand has established strong

66 MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online)
 Rozaidy Mahadia, Raman Noordin, Rasid Mail & Kaziemah Sariman

fiscal control. In terms of budgeting, New Zealand increases to core budgets of each
department at only a steady immaterial level (C. Mark, 2006)

Surprisingly, New Zealands gross financial liabilities have reduced from 65%
of GDP in 1993 to 23% in 2005, although the OECD as a total has risen from 66% to
76% in the same timeframe (OECD Economic Outlook, 2005). The country has also
showed budget excesses in nearly each year since the early 1990s (C. Mark, 2006). As
a result, New Zealands net debt has reduced considerably, from roughly 52% of GDP
in 1992 to near 10% in 2005 (New Zealand Treasury, 2005.) During the same time,
New Zealand has enjoyed, for the most part, moderate to strong economic growth,
averaging around 3.3% annual growth in real GDP over the last decade (OECD
Economic Outlook, 2005).

Source: OECD Economic Outlook No. 78 (2005)

Figure 1 New Zealand Real GDP Growth

MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online) 67
 Accrual Accounting in Malaysia: What We Should Learn from Others

Source: OECD Economic Outlook No. 78 (2005)

Figure 2 General Government Gross Financial Liabilities

2 Australia

A similar path with its neighbour, Australias embracing of accrual accounting for the
public sector took place during a era of broad economic transforms, despite the fact
that Australias migrations more cautious than New Zealand (C. Mark, , 2006). Albeit
Australias economic development had been steadier than New Zealands, stress arose
by the early 1990s to boost government capability and recover fiscal performance (GOA
Report, 2000). Wide-ranging reforms were done all the way through two initiatives:
the Financial Management Improvement Program and the Program Management and
Budgeting (GOA Report, 2000).

Moreover, the Financial Management and Accountability Act of 1997 launched

a government management system with stress on performance evaluations contrasting
with those adopted in New Zealand (C. Mark, 2006). Subsequently, government
agencies were pushed to commence budgeting, reporting, and accounting on an accrual
basis (C. Mark, 2006). The 1999-2000 budgets, Australia published comprehensive
accrual-based financial statements and had wholly adopted accrual output budgeting
(C. Mark, 2006). Start from that, Australia has continuous to develop its accrual-based
accounting and budgeting.

68 MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online)
 Rozaidy Mahadia, Raman Noordin, Rasid Mail & Kaziemah Sariman

In addition, Australia has reinforced fiscal controls in recent years. Australia

has produced a budget surplus steadily close to a decade, and it has thrived in
reducing its net debt from a high of 25% of GDP in the mid 1990s to near debt
eradication (Australian Government Budget Overview 7, 2005). Its gross financial
liabilities have reduced from a soaring of 43% of GDP in 1995 to 15% in 2005, the
second lowest possible percentage in the OECD2 (OECD Economic Outlook, 2005).
Australia has benefited from economic growth in real GDP averaging 3.6% yearly
over the past decade (OECD Economic Outlook, 2005). Once more, it is uncertain
to what degree accrual accounting reforms are accountable for the fiscal control and
economic growth.

Source: OECD Economic Outlook No. 78 (2005)

Figure 3 Australia Real GDP Growth

Source: OECD Economic Outlook No. 78 (2005)

Figure 4 Worldwide Comparison of Net Debt

2
The Organization for Economic Co-operation and Development (OECD) (www.oecd.org)

MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online) 69
 Accrual Accounting in Malaysia: What We Should Learn from Others

3 United Kingdom

In the UK, which consists of four separate countries (England, Northern Ireland (NI),
Scotland and Wales) within one main political unit, the migration from cash to accruals
accounting for central government was viewed as major and highlighted as such by
politicians. For example, Kenneth Clarke, the then UK Chancellor of the Exchequer,
stated people will find other ways of celebrating the millennium but few will be more
important. This is one of those highly significant events (HM Treasury, 1995, p. 1).

A phased introduction, where systems were to be developed and resources,
including skilled personnel, were to be acquired, was approved for the changes
which were implemented under the title Resource Accounting and Budgeting (RAB).
Resource accounting (RA) applies accruals principles to public sector accounting and
seeks to combine objectives and targets into the accounting system. Resource budgeting
involves using RA information as the foundation for planning and controlling public
expenditure in order to make the management accounts support with the external
accounts. The key events associated with the opening of RAB in the UK are outlined
in Table 1. As can be seen, since the fiscal year 2003/2004 UK central government
departments have been operating on an accruals basis for both accounting and
budgeting. For a detailed discussion of this, and the actual implementation process,
see Connolly and Hyndman (2006).

Table 1 Key events associated with the introduction of RAB in the UK

Year Key Event
1994 Green (consultation) paper published by HM Treasury.
1995 White (policy) paper published by HM Treasury.
1998/99, 1999/00 and 2000/01 Dry run years for production of resource accounts.
1999 Dry-run exercise undertaken for resource budgets.
2001/02 Resource accounts fully implemented.
2001/02 and 2002/03 Resource budgets transitional years.
2003/04 Resource budgets fully implemented.

The Issues and Challenges

The move to accrual accounting has not been accepted universally as many have
failed in implementing accrual accounting in their public sectors (Tiron Tudor &
Mutiu, 2009). As of today, there are significant discussions and arguments around
the application of accrual accounting in public sector. One of the debates is accrual
accounting is unsuited to the public sector due to the differences in objectives and
character of economic decision-making between public and private sectors (Rowles,
2004; Nistor et al., 2009). Most government services are not evaluated based on profits
earned or losses unlike private sector. The accrual accounting standards have not been

70 MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online)
 Rozaidy Mahadia, Raman Noordin, Rasid Mail & Kaziemah Sariman

adequately suited to the unique environment of the public sector and the information
generated might not be relevant to the needs of the public sector; thus, making it
difficult to be understood and interpreted (Barton, 2005).

A major issue in the adoption of accrual accounting is the recognition and

valuation of assets and liabilities (Hodges and Mellett, 2003; Chan, 2003; Marti, 2006;
Saleh and Pendlebury, 2006; Lapsley et al., 2009). Heritage assets such as monuments
and national parks; infrastructure assets such as roads; and military equipments are
hard to identify and measure. It is argued that assets such as public monuments should
actually be considered as liabilities because these assets are the subject of cash flows
rather than inflows (Robert Mautz, 1988, cited in Lapsley et al., 2009; Monteiro and
Gomes, 2013). As a solution, Government Finance Statistics Manual suggested the
value of the insurance premium on the asset in question to be used while the United
Kingdom has solved the issue by determining a nominal value for non-operating assets
that were already owned while evaluating new acquisitions at their purchase price
(Diamond, 2006, cited in Monteiro and Gomes, 2013). New Zealand and Australia
generally resolved this issue by using a net current value approach to the valuation
of assets (IFAC, 1994). Using this approach, the balance sheet portrays the economic
reality of the financial position more fairly (IFAC, 1994).

Chan (2003) stated that it is difficult for governments to recognize and measure
its contractual or legal obligations and social responsibilities for the general welfare.
Under cash budgeting, future liabilities are not accounted and therefore, the budget
figures are not accurately reflected and it propelled New Zealand and Australia to
adopt full accrual accounting with accrual budgeting system in order to have asset of
financial statements that reflect a more accurate financial position of their governments.
Actuarial and accrual methods are used by both New Zealand and Australia to account
for potential liabilities incurred under government employee pensions and government
loans (Champoux, 2006). Meanwhile in 2012, US state and local governments with
defined benefit pension plans were required to disclose a net pension liability on their
balance sheet after the Governmental Accounting Standards Board (GASB) issued a
new pension accounting and reporting standard that year (PwC, 2012).

Apart from valuation and recognition issue, there is a concern in using two
different systems which is maintaining cash budgeting after the introduction of accrual
accounting. It is not recommended because of compatibility problems that might arise
with the information from the accounting and budgetary documents due to conflicting
goals of the accrual and cash regimes (Monteiro and Gomes, 2013). In Canada, the
departments were required to implement a common chart of accounts and submit
monthly trial balances to the new central accounting system while their old set of
accounts was still maintained for internal purposes (Pollanen & Loiselle-Lapointe,

MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online) 71
 Accrual Accounting in Malaysia: What We Should Learn from Others

2012). Consequently, financial reporting and management decisions continued to be

based on cash accounting or modified cash accounting as before. Pollanen & Loiselle-
Lapointe (2012) added that the use of dual systems often leads to conflicting and
confusing data that discourage the managers from fully using the accrual system.

Another challenge in shifting towards the accrual accounting in public sector is

in regard to staffing or human competency (IFAC, 2013). All staff whom are used to
cash accounting might resist the new accounting system (Nistor et al., 2009). Blondal
(2003) stated that government accountants need to be trained and improve their skills
in accrual accounting as they have been trained for cash basis of accounting. A cultural
change such as re-education and retraining of staff are needed in order to ensure the
success of implementing accrual accounting (Monteiro and Gomes, 2013). New
Zealand Institute of Chartered Accountants (NZICA), previously known as the Institute
of Chartered Accountants of New Zealand comprises of practicing accountants,
corporate accountants and public sector accountants gave support towards the reform
process where they showed great effort in organizing conventions and forums related
to the reform (IFAC, 1994). As of today, Malaysias Accountant Generals Department
is actively conducting awareness and training programmes such as IPSAS workshops
and MPSAS (Malaysian Public Sector Accounting Standards) workshops to help the
employees for the transition to accrual accounting which will be commencing in 2015
(AGD, 2014).

Nistor et al. (2009) and Saleh & Pendlebury (2006) also argued that the costs
of implementation will be much higher. The costs and benefits of the change are not
necessarily well understood where it can result to an enormous wasted investment
and a risk of losing financial control (Hepworth, 2003; Nesbakk, 2011). According
to IFAC (1996), the costs of developing information systems can be very costly as
the governments need to adopt a number of new processes in the effort to move from
a cash-based system to an accrual-based system. It also involves human cost where
the costs of staff retraining and sometimes the recruitment of new staff can be costly
to ensure successful transition (Montesino & Vela Bargues, 1996). They added that
these costs consist of acquisition of new computer hardware and system development
cost which will require an investment of significant financial resources from the
governments. This is supported by Cangiano (1996) where he had written about New
Zealand experience in adopting accrual accounting where the country had incurred
higher administration expenses and also faced additional spending by Inland Revenue
to meet the implementation costs of various tax reforms.

It is indisputable that public sector accounting reform poses some challenges

and to what level accrual accounting transitions is accountable for economic growth
and fiscal controls remain uncertain (Hepworth, 2003; Champoux, 2006; Zakiah &

72 MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online)
 Rozaidy Mahadia, Raman Noordin, Rasid Mail & Kaziemah Sariman

Pendlebury, 2006). In the next section, this paper will further explain the impacts of
accrual accounting reform as experienced by pioneer countries in accrual accounting
adoption namely New Zealand, Australia and United Kingdom.

Impacts of Accrual Accounting Reform

Accountability has been the major motivation for governments to shift to accrual
accounting as it is believed that accrual accounting will improve accountability (Chan,
2003). In New Zealand, the government adopted modern management practices
which led to better performance and accountability in their public entities where
chief executives are given stronger personnel authority (Champoux, 2006). The
accountability of chief executives is not only limited to the financial management
of their department, but also accountable for the financial results and financial
performance of their organizations. This has been made possible by implementing
performance-based executive evaluations where the chief executives have annual
performance agreements within a limited-term employment contract (Ball et al.,
2004). They are held accountable for the outputs stated in the agreement and financial
mismanagement will then reflect their performance assessment at the end of each
period (Ball et al., 2004).

Both New Zealand and Australia showed a better fiscal performance since the
introduction of accrual accounting as Champoux (2006) reported that both countries
have produced a budget surplus in nearly every year. He then further explained that
Australia has thrived in dipping its net debt from a high of 25% of GDP in the mid
1990s to near debt elimination and benefited from constant economic growth in real
GDP over the years. New Zealand on the other hand has succeeded in decreasing its
gross financial liabilities from 65% of GDP in the early 1990s to 23% in mid 2000s.
This led a remarkable decrease in New Zealands net debt. Similarly, New Zealand
has enjoyed moderate to strong economic growth in real GDP over the years.

Following the introduction of accrual accounting, there were significant

improvements in asset management (Baboojee, 2011). For instance, the UK government
was able to use accrual accounting information to identify under-utilized assets and to
dispose those assets that were no longer in use (Wynne, 2010). The detailed information
provided by accrual accounting allowed them to understand how well they are using
their financial resources especially in asset and liabilities management (Arnaboldi and
Lapsley, 2009; Lapsley et al., 2009; Wynne, 2010, Baboojee, 2011). This happened
similarly in Australia as they managed to sell off their under-utilized and obsolete assets
and caused the Australian government to receive millions of revenue generated from
the asset disposals in mid 1990s (Barton, 2009). The improved quality of information
provided by accrual accounting made this possible and also aid in decision making
for assets acquisition (Ball et al., 2004).

MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online) 73
 Accrual Accounting in Malaysia: What We Should Learn from Others

4 Conclusion

Some researchers claimed that the reforms in the two pioneer countries as a success
while some other researchers argued whether accrual accounting reforms are
responsible for economic growth and fiscal discipline of those countries (Hepworth,
2003; Champoux, 2006). Nonetheless, the experiences of countries that have fully
implemented accrual accounting such as New Zealand, Australia, United Kingdom and
many more can assist any other country that is moving towards the accrual accounting
adoption. Both countries can be said to be successful in achieving their objectives as
they have demonstrated improved fiscal performance and better in managing their
assets since the adoption of accrual accounting.

However, it is important for developing countries such as Malaysia to consider

the issues or challenges in implementing accrual accounting in order to ensure a
successful of migration towards accrual accounting. In Malaysia especially, the
challenge to have sufficient qualified staff is likely to be of more importance compared
to the developed countries. Still, it can be learned from past experiences that the
change can be done but the journey towards the goal may not be easy. With the will
of the government for Malaysia to be a developed country by 2020, the change is not
impossible to be made.

Acknowledgement

The authors acknowledge the financial support of the Malaysia Ministry of Education
(Higher Education) on FRGS fund (FRG0346-SS-2/2013 / Exploring The Readiness
To Adopt Accrual Accounting System Among Public Sector Organizations in Sabah).
In addition, a special acknowledgement and thanks to the Accountants General
Department for their helps in making this research workable.

References

Arnaboldi, M. & Lapsley, I. (2009). On The Implementation of Accrual Accounting: A Study

of Conflict and Ambiguity, European Accounting Review, Vol. 18, No.4, 809-836.
Accountant Generals Department (2014). Pelan Latihan 1GFMAS, Mesyuarat Jawatankuasa
Kerja Perlaksanaan.
Australian Government Budget Overview 7 (2005), available at http://www.budget.gov.
au/2005-06/overview/html/index.htm.
Baboojee, B. (2011), Improving service delivery through changing from cash to accrual
accounting: Lessons for South Africa based on a cross-national study, University of
Stellenbosch.
Ball, I, Dale, T. Eggers, W.D & Sacco, J. (2004), Reforming Financial Managament in the
Public Sector: Lessons U.S. Officials Can Learn From New Zealand, Policy Study
No. 258.

74 MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online)
 Rozaidy Mahadia, Raman Noordin, Rasid Mail & Kaziemah Sariman

Barton, A. (2005). Professional Accounting Standards and the Public Sector A Mismatch,
ABACUS, Vol. 41, No. 2, 138-158.
Barton, A. (2009), The Use and Abuse of Accounting in the Public Sector Financial Management
Reform Program in Australia, Abacus, Vol. 45, Issue 2, pp. 221-248.
Blondal, J.R. (2003). Accrual Accounting and Budgeting: Key Issues and Recent Developments,
OECD Journal on Budgeting, Vol. 3, No. 1, 43-59.
Champoux, M. (2006), Accrual Accounting in New Zealand and Australia: Issues and
Solutions, Harvard Law School Federal Budget Policy Seminar, Briefing Paper No.
27.
Cangiano, M. (1996), Accountability and Transparency in the Public Sector: The New Zealand
Experience, International Monetary Fund Working Paper, WP/96/122.
Champoux, M. (2006), Accrual Accounting in New Zealand and Australia: Issues and Solutions,
Harvard Law School, Federal Budget Policy Seminary, Briefing Paper No. 27.
Chan, J.L. (2003). Government Accounting: An Assessment of Theory, Purposes and
Standards,Public Money & Management, 23:1, 13-20.
Conolly, C. & Hyndman, N. (2010). Accruals Accounting in the Public Sector: A Road Not
Always Taken, IPA Seminar, 1-16.
Connolly, C. and Hyndman, N., (2006). The actual implementation of accruals accounting:
caveats from a case within the UK public sector, Accounting, Auditing and Accountability
Journal 19, 272-290. General Accounting Office (GOA) (2000), Accrual Budgeting:
Experience of Other Nations and Implications for the United States, GAO/AIMD-00-
57 (2000).
Gomes, M. (2013). Improving Public Sector Finance, Accountants Today, January/February,
12-15.
Guthrie. J. (1998). Application of Accrual Accounting in the Australian Public Sector Rhetoric
or Reality?, Financial Accountability and Management, 14(1), 1-18.
Hepworth, N. (2003). Preconditions for Successful Implementation of Accrual Accounting in
CentralGovernment, Public Money & Management, 23:1, 37-44
HM Treasury, (1995), Publication of White Paper on Resource Accounting and Budgeting,
Press Notice 195, The Stationery Office, London.
Hodges, R. & Mellett, H. (2003). Reporting Public Sector Financial Results, Public Management
Review, Vol. 5, No. 1, 99-113.
International Federation of Accountants (1994), Implemeting Accrual Accounting in Givernment:
The New Zealand Experience, Public Sector Committee, Occasional Paper 1.
June Pallot & Ian Ball (1996), Resource Accounting and Budgeting: The New Zealand
Experience, 74 PUB. ADMIN. 527
Lapsley, I., Mussari, R. & Paulsson, G. (2009), On the Adoption of Accrual Accounting in the
Public Sector: A Self-Evident and Problematic Reform, European Accounting Review,
Vol. 18, No. 4, 719-723.
Monteiro, B.R.P. & Gomes, R.C. (2013). International Experiences with Accrual Budgeting
in the Public Sector, USP, Sao Paulo, Vol. 24, N. 62, 103-112.
Montesinos, V. & Vela Bargues, J.M. (1996), Bases of Accounting and Reporting Foci in
Spanish Governmental Accounting, IFAC Occasional Paper 3.
National Economic Advisory Council (2010). New Economic Model for Malaysia Part 1:
Strategic Policy Directions.
Nesbakk, L.G. (2011). Accrual Accounting Representations in the Public Sector A Case of
Autopoiesis, Critical Perspective on Accounting, 247-258.

MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online) 75
 Accrual Accounting in Malaysia: What We Should Learn from Others

New Zealand Treasury (2005), A Gide to The Public Finance Act, available at http://www.
treasury.govt.nz/pfa/default.asp.
Nistor, C.S., Deaconu, A., Cirstea, A. & Filip, C.I. (2009). Stability and Coherence in
Transition: A Wish That Can Be Accomplished? The Accounting System of Romanian
Public Institutions, Journal of International Business and Economics, Vol. 9, No. 2,
106-123.
OECD Economic Outlook No. 78, Annex Table 32 (2005), available at http://www.oecd.org/
document/61/0,2340,en_2649_201185_2483901_1_1_1_1,00.html
Pasukan Pelaksanaan Perakaunan Akruan (2013). Buletin Fokus Akruan Isu No.2 Oktober
December 2013, Jabatan Akauntan Negara Malaysia.
Pollanen, R. & Loiselle-Lapointe, K. (2012), Accounting Reform in the Government of
Canada: Exploratory Evidence on Accrual Accounting Adoption and Impact, Financial
Accountability & Management, 28 (4), 0267-4424.
PricewaterhouseCoopers (2012), GASB issues new pension standards for state and local
governments, HRS Insight 12/24.
Saleh, Z. & Pendlebury, M.W. (2006), Accruals Accounting in Government Development in
Malaysia, Asia Pacific Business Review, 12(4), 421-435.
Sevic, Z. (2006). Accounting Aspects of New Public Management: Accrual Accounting in
the Public Sector, Journal of Finance and Management in Public Services, Vol. 4, No.
1, 51-66.
Tiron Tudor, A. & Mutiu, A. (2006). Cash versus Accrual Accounting in Public Sector.
Van Der Hoek, M. (2005), From Cash to Accrual Budgeting and Accounting in the Public
Sector: The Dutch Experience, Public Budgeting & Finance.
Wynne, A. (2010), Accrual Accounting for the Public Sector In Need of A Re-think?, retrieved
from http://www.saiga.co.za.

76 MJBE Vol. 1, No. 2, December 2014 ISSN 2289-6856 (Print), 2289-8018 (Online)