Accrual Accounting Change: Malaysian Public Sector Readiness

Abstract

The federal government decision to implement accrual-based accounting in Malaysia under the Government Transformation Programme (GTP) led to major changes in public finance management. To ensure the reforms achieve the target, the behaviour and mindset of employees must be ready. Therefore, this preliminary study will determine which attributes measure the readiness for change among public sector accounting personnel in Malaysia. This study also investigates any significant difference between demographic factors (position and length of service) and readiness for change. A survey was conducted of 119 public sector accounting personnel consisting of accountants, assistant accountant 1 and assistant accountant 2 in respect of their readiness to adopt accrual accounting in various ministries in Malaysia. The objectives of the study have been tested using descriptive analysis and ANOVA. The general findings show that the respondents have positive behaviour concerning readiness for change to accrual-based accounting. However, the results show that they are slightly disagree to take responsibility if the accounting change fails in their area. This study proves that the demographic factors of position and length of service are not related to readiness for change. These results are important for the government in order to strategize the effective guidelines for change interventions to ensure the successful implementation of accrual accounting in Malaysia.

Accountants’ acceptance of accrual accounting systems in the public sector and its influence on motivation, satisfaction and performance

“…This study uses questionnaire survey to address the research objectives and to test the research hypotheses. The questionnaire is constructed and designed by referring to previous studies such as Atan and Yahya (2015), Sidikova (2011), Shin and Jung (2014) with some modifications to suit the context of this study. The questionnaire is divided into 5 sections.…”

“…However, it was not until May 2011 that the government made an announcement and placed AAS as one of the national agendas to overcome the weaknesses in its fiscal management. The implementation of AAS seems necessarily to change the strategy, structure and organisational operating system in the public sector as a whole particularly in recording and reporting system (Atan & Yahya, 2015). The transition process from cash based accounting to AAS however, has its challenges.…”

Readiness Analysis of Data Analytics Audit Implementation in Inspectorate General of the Ministry of Finance: An Indonesian Case

“…Furthermore, Kayahan (2013) explained that human resources need to be trained with technological skills in performing audits, such as analyzing internal controls and seeing irregularities. In comparison, Atan dan Yahya (2015) stated that employee behavior affects the organization's readiness. Furthermore, according to Gürdür et al (2019), one of the indicators for human resources' readiness is a dedicated employee to perform a data analytics audit.…”

FACTORS INFLUENCING THE READINESS OF FINANCIAL EMPLOYEES IN SHIFTING TO ACCRUAL ACCOUNTING: EVIDENCE FROM JORDAN’S PUBLIC SECTOR

“…Bareil et al (2007), Bernerth (2004), and Armenakis et al (1993Armenakis et al ( , 1999 mentioned that the readiness of individuals who work in the organization is considered a crucial factor in ensuring the success of the shifting process. Thus, it is imperative to address the factors associated with the readiness of financial employees before the real shifting process to accrual accounting takes place (Atan & Yahya, 2015). In the light of these facts, this study discovered two potential factors from the existing literature (i.e., Gupta & Singla, 2016;Shah, 2009;Maslow's Needs Theory, 1954) play an essential role in individuals' readiness during the shifting process.…”