Accrual Accounting Implementation and Accrual Information Usage in the Malaysian Public Sector: Impacts on Sustainable Development Goals (SDG) and Maqasid Shariah

Abstract

Purpose: The current study aims to determine the degrees of accrual accounting implementation and accrual information usage in the Malaysian public sector with relevant impacts on budget development and management, asset and liability management, accountability disclosure, and performance measurement. Methodology: The present study employed a qualitative methodology, namely focus group discussion to garner relevant insights from the accountants in Malaysian Ministries and Local Authorities (LA). Thematic analysis was subsequently conducted for interview data analysis. Results: The findings revealed that accrual accounting was implemented as specified in the Malaysian Government Treasury Circular. Meanwhile, accrual information was employed in budget development and management and asset and liability management albeit less frequently in performance measurement. Accrual information usage contributed to satisfactory accountability disclosure through more comprehensive, accurate, and transparent reporting. Furthermore, accrual accounting usage produced significant positive impacts to realise sustainable development goals (SDGs) by incorporating Maqasid Shariah elements in accomplishing the national agenda of Shared Prosperity Vision 2030. Practical Implications: The current study could guide relevant authorities to ensure effective accrual information application in financial management. This study also recommends continuous enhancement of periodic training programmes and courses on governmental accrual accounting implementation and accrual information usage. Additionally, comprehensive reporting of Maqasid Shariah-based SDG performance is highly emphasised. Originality/Value: The present study demonstrated that accrual information usage positively impacted SDG achievement based on Maqasid Shariah. Keywords: Public sector accounting, accrual accounting, SDGs, Maqasid Shariah.