Financial Management in the Malaysian Public Sector: The Dynamics of Accrual Accounting in the Administrations of Two Hybrid Statutory Bodies
Vol. 13, No. 1, 2023, pp. 1 – 15
: Zubir Azhar, K. Kishan, Ervina Alfan
Purpose: This study aimed to examine the experiences of two statutory bodies, anonymised as Alpha and Omega, in implementing accrual accounting and the challenges they faced in fully implementing the Malaysian Public Sector Accounting Standards (MPSAS).
Design/Methodology/Approach: : A comparative case study approach was adopted in this study. Secondary data analysis, a series of focus group discussions and semi-structured interviews with key actors involved in implementing accrual accounting in Alpha and Omega were also undertaken.
Research Limitations/Implications: This study is confined to two statutory bodies. Future research should consider the impact of MPSAS adoption on
other hybrid statutory bodies.
Practical Implications: The study demonstrates that adopting a different accrual accounting system is challenging for government organisations. It also highlights that MPSAS may not best reflect the operating nature of hybrid statutory bodies.
Originality/Value: Prior studies focused on government entities’ first-time adoption of accrual accounting. This study differs as it examined the challenges government entities face when transitioning from one accrual accounting system to another.