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The Governance Board of a federal agency has instructed its management to prepare financial statements using the new Malaysian Public Sector Accounting Standards (MPSAS) instead of the previously used Malaysian Financial Reporting Standards (MFRS). The agency oversees various activities and 44 subsidiaries and associates.
The Governance Board of a federal government agency tasked its management to produce their complete set of financial statements using a new set of accounting standards i.e. the Malaysian Public Sector Accounting Standards (“MPSAS”). Previously, the agency was using the Malaysian Financial Reporting Standards (“MFRS”). The accounts of the subsidiaries and the associates are prepared by using the MFRS. The Agency handles variety of activities that includes, amongst others, education, giving soft loans to small and medium industries and students, providing various public programmes etc. The Agency is also the parent to 44 subsidiaries and associates. The financial statements have to be ready by 31 March for submission to the Jabatan Audit Negara.
To handle the conversion of affected accounts of the Agency due to change of accounting standards i.e. from MFRS to MPSAS.
To handle the conversion of affected accounts of the subsidiaries from MFRS to MPSAS.
To consolidate the accounts of all the entities in the Group as if all entities in the Group are prepared using the MPSAS.
To prepare a complete set of financial reports within the stipulated time frame.
We designed and constructed a financial reporting template with the following features:
For ensuring that proper data are inserted into the template, we provided training to the accountants of the Agency and its subsidiaries.
The subsidiaries converted the affected information (from MFRS to MPSAS) using the template which are then merged with those of the Agency for consolidation of the Group.
The template enables all the components of the Group to enter their data and relevant information expeditiously and with high degree of data integrity.
The high degree of automation enabled the production of high quality of financial statements of the Group and the Agency within the stipulated time frame.
The same concept and methodology is applied to various other large and medium size federal government agencies including 2 public research universities. The schematic diagram for the above is depicted as shown above:-
The Governance Board of a federal government agency tasked its management to produce their complete set of financial statements using a new set of accounting standards i.e. the Malaysian Public Sector Accounting Standards (“MPSAS”). Previously, the agency was using the Malaysian Financial Accounting Standards (“MFRS”).
2 Fortune 500 companies formed a joint venture for producing petroleum products. The production complex uses shared IT system. The IT system is based on the main system of one the JV partner and the cost is meant to be split equitably.
A state government agency (“the State Agency”) was considering to wind up one of its subsidiaries (“Subsidiary A”).
The restructuring was required as the present structure is seen to hinder the performance of its main profit-making subsidiary. Nevertheless, the Board of the State Agency must maintain effective control and at the same time, enabling the management to be incentivised more effectively.
A large federal government agency wanted to change its financial accounting system as the Agency is expecting to handle bigger volume of transactions, and the newly adopted accounting standards i.e. MPSAS requires necessary changes particularly due to certain reporting concept differences. The present system was also restrictive in terms of expansion especially integration with mobile application.
Due to the change in accounting standards from FRS to MFRS, a federal government agency had to remeasure and record its agricultural assets. The newly adopted standard i.e. the MFRS 141 -Agriculture, requires for plantation trees to be captured as part of Property, Plant and Equipment.
A client with many leases (for premises) nationwide requires a solution for automating the measurement of rights-of-use assets and the corresponding lease liabilities.
An agency, facing challenges with changing personnel affecting technical knowledge and internal organization, required comprehensive work manuals for specific areas, particularly accounting treatments
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