Transparent system

KUALA LUMPUR: Malaysia’s decision to switch to accrual accounting from the current cash-based accounting system in the public sector will put the Government in a better position to manage its finances well when the new public sector accounting standards are implemented, according to an accountant.

Accrual accounting - which takes into account more than just cash flows, but all the Government’s assets and liabilities, including off-balance items as well as pension obligations for public servants – could provide a clearer picture of the government’s fiscal position, he said.