KOTA KINABALU: The Sabah Treasury Department targets to implement the accrual accounting method by 2021 that will enable a more accurate picture of the state’s financial standing.
Treasurer, Rusdin Riman said preparations to migrate to the new accounting method is already 70 per cent completed, based on the integrated efforts of the Treasury Department, Ministry of Finance and State Computer Services Department.
“We started preparing since 2015 and are proud to have done it without having to engage consultants. It has been a lot of hard work but as a team, I am confident we can finish it by 2021 or perhaps even earlier,” he said in a statement.
Accrual accounting not only offers greater transparency of the state’s financial position but it is also the preferred method of accounting for investors.
It also conforms to the generally accepted accounting principles (GAAP), international financial reporting standards (IFRS) and Malaysian Public Sector Accounting Standards (MPSAS).
“This will certainly help to boost public confidence in our state’s financial standing because the people will obtain an overall picture of the current condition,” said Rusdin.
He explained that implementing the method will require training not just accountants in the civil service but also non-accounting personnel too.
He was speaking in conjunction with the meeting of all State Treasurers and State Accountants across Malaysia held in Kota Kinabalu for the first time, starting from 3 to 5 April. It will be chaired by Accountant General, Datuk Saat Esa.
Among others, the meeting will mainly discuss each state’s progress with preparations to migrate to the accrual accounting method.
The Sabah State Treasury Department has consistently received a clean bill of health for 17 years from the National Audit Department. Sabah’s financial report for 2018 is currently being audited.