Malaysia's public sector gets ready for accruals accounting

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. How did most federal and state governments as well as local authorities in Malaysia account for transactions in the past, prior to the adoption of MPSAS?

  2. The implementation of accrual accounting is in tandem with the Malaysian government’s Public Sector Transformation Policy under the New Economic Model as well as in line with the implementation of Outcome-based Budgeting (OBB) by the government. What is the expected impact of the adoption of accrual accounting in public sector (together with OBB)?

  3. The Accountant General’s Department (AGD) had issued a circular that federal and state governments will apply accrual accounting using MPSAS with effect from?

  4. The MPSASs are designed to be applied in the preparation of general purpose financial reports of all public sector entities other than Government Business Entities (GBEs). Which of the following does NOT correctly describe GBEs?

  5. The MPSAS standards are largely based on MFRS/IFRS standards but there are a couple of standards that are unique to public sector environment and therefore there is no equivalent MFRS/IFRS. Which of the following relate to standards that are unique to public sector?

  6. How is MPSAS 32 on service concession arrangements different from IFRIC 12?

  7. To drive the implementation of accrual accounting in the public sector, the AGD established two committees. What are two committees set up by the AGD?

  8. The AGD has also come up with a four-pronged implementation strategy for accrual accounting in the public sector in Malaysia that encompass standards & policies, rules & regulations, process & technology and human resources. Which of the following relate to the 'standards and policies' strategy?

  9. To assist and supplement the adoption of MPSAS, the AGD has also developed several guidelines, circulars, policies and an accrual accounting manual to assist preparers of financial statements. Which of the following is NOT key supplementary guidance issued by the AGD?

  10. One of the supplementary guidance issued by the AGD to assist the adoption and implementation of MPSAS is Transition Policy for Accrual Accounting Implementation of the Federal Government Guideline. What does this guidance relate to?