IPACC UMY Hosted General Lecture regarding the Changes in Malaysian Goverment’s Accounting System

October 16, 2019 by : BHP UMY

 

The International Program of Accounting of Universitas Muhammadiyah Yogyakarta (IPACC UMY) hosted a General Lecture by inviting Assoc. Prof. Dr. Zakiah Saleh of the University of Malaya. The event that took place at the E7.B Amphitheater of UMY’ Central Campus on Tuesday (15/10) discussed the issues of challenges regarding ‘The Journey of Malaysian Government in Implementing Accrual Accounting’.

Zakiah explained the changes made by the Malaysian Government to their government’s accounting system by switching from a cash basis to an accrual basis. “The Malaysian accounting system was inherited from Britain’s system. We still used the cash-based system and a line-item traditional budgetary system after our independence (1957). The changes are part of the administrative reformation. The Cash Basis modification started in 1974, and we finished transitioning into an accrual-basis system in 2010,” he explained to the students.

Cash basis is a record-keeping method in accounting where every transaction is recorded based on the nominal number received. Meanwhile, Accrual Basis Accounting is a record-keeping method where every transaction is recorded based on a true confession concept. “The changes in the Malaysian government’s accounting method needed support from politicians and administrators. There will be no returning to the old method, and we must keep moving forward to improve our new one,” Zakiah added.

Indonesia has been using an Accrual Basis method longer than Malaysia. “The main difference is that the accounting method of Malaysia used Common Law, while Indonesia’s accounting method used Civil Law,” Stated the Director of the IPACC Program Dra. Arum Indrasari M.Buss., AK., CA, when interviewed after the event.

The general lecture is a program that IPACC UMY routinely hosts, usually five times a year. Arum hopes that the students that participated in the event can learn new knowledge regarding accounting, more than what they have learned in their classes. “We hope that the students can learn from the activity, especially regarding the Malaysian Government’s change from Cash Basis Accounting to Accrual Basis. The students should be able to compare and contrast the Accrual Basis accounting systems of Indonesia and Malaysia and use it as their Thesis material. Accrual Basis is part of the Public Accounting Class in IPACC UMY,” Arum stated.