Case Studies

Transitioning to Malaysian Public Sector Accounting Standards (MPSAS

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”). 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.

Issues and Challenges

01

Change of accounting standards

To handle the conversion of affected accounts of the Agency due to change of accounting standards i.e. from MFRS to MPSAS.

02

Conversion of affected accounts

To handle the conversion of affected accounts of the subsidiaries from MFRS to MPSAS.

03

consolidate accounts

To consolidate the accounts of all the entities in the Group as if all entities in the Group are prepared using the MPSAS.

04

Financial Report

To prepare a complete set of financial reports within the stipulated time frame.

Our Solution

We designed and constructed a financial reporting template with the following features:-

  • High degree of automation by utilising data links and formulae
  • Error checking for eliminating bad data
  • Automation of data consolidation using scripts
  • Automated functions for production of:
    • Statement of financial position
    • Statement of financial performance
    • Statement of Changes in Equity
    • Statement of Cash Flows Statement of Budget and Actual Performance
    • Notes to the Financial Statements

 

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 result

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 follows:-

WNC Consolidation Template Workflow