Answer:
1.Ongoing efforts have been undertaken in Malaysia to improve the financial reporting and accountability in government agencies. Discuss the efforts.
Malaysia has been making efforts to improve financial reporting and accountability in government agencies for several years. In 2015, the Malaysian government introduced a new financial reporting framework for government agencies called the Malaysian Public Sector Accounting Standards (MPSAS). This framework is designed to improve financial reporting and ensure that government agencies are held accountable for their financial performance.
The MPSAS framework is based on international accounting standards and is meant to increase transparency and consistency in financial reporting. It includes guidelines for budgeting, financial management, and reporting of financial performance. Additionally, the Malaysian government has established the Accountant General's Department, which is responsible for overseeing financial reporting in government agencies.
Other initiatives aimed at improving financial reporting and accountability in Malaysia include the implementation of electronic financial management systems, the introduction of new financial management guidelines, and the establishment of a Financial Management Committee to oversee financial management across all government agencies.
2.Discuss the extent of application for the key accounting concepts in the public sector.
The key accounting concepts that are applicable to the public sector are similar to those used in the private sector, with some important differences. One of the key differences is that in the public sector, accounting practices are focused on ensuring accountability to the public and ensuring that public funds are used responsibly.
Some of the key accounting concepts that are applicable in the public sector include accrual accounting, budgeting, and financial reporting. Accrual accounting is used to record financial transactions as they occur, regardless of when payment is made or received. This helps to ensure that all financial transactions are recorded accurately and transparently.
Budgeting is also an important accounting concept in the public sector. Governments typically create budgets to allocate funds to various programs and projects. These budgets are then used to monitor financial performance and ensure that resources are used efficiently.
Financial reporting is another key accounting concept in the public sector. Governments are required to report on their financial performance to ensure transparency and accountability. This includes reporting on revenue and expenses, assets and liabilities, and cash flow.
3.Clearly describe the regulatory framework and procedures for financial reporting in the public sector.
The regulatory framework for financial reporting in the public sector typically involves a combination of national and international accounting standards. In Malaysia, the regulatory framework is based on the Malaysian Public Sector Accounting Standards (MPSAS), which are based on international accounting standards.
Under this framework, government agencies are required to prepare financial statements in accordance with MPSAS. These statements include the statement of financial position, statement of financial performance, statement of changes in equity, and statement of cash flows.
Additionally, the Accountant General's Department is responsible for overseeing financial reporting in government agencies. They are responsible for ensuring compliance with MPSAS and for providing guidance on financial reporting issues.
Government agencies in Malaysia are required to submit their financial statements to the Accountant General's Department for review and approval. Once approved, these statements are published and made available to the public.
Overall, the regulatory framework and procedures for financial reporting in the public sector are designed to ensure transparency and accountability in the use of public funds.