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Identifying Factors Influencing Compliance of Malaysian Public Sector Accounting Standard (MPSAS): Evidence from Federal Statutory Bodies (FSBS)

Author

Listed:
  • Ibrahim Bin Abu Sin

    (Academy of Sciences, Malaysia)

  • Shukriah Binti Sa’ad

    (Faculty of Accountancy, University Technology MARA, Puncak Alam, Selangor, Malaysia)

Abstract

MPSAS compliance is a topic of intense discussion between federal statutory bodies and the federal government. Despite the efforts of the Malaysian Government to encourage Federal Statutory Bodies (FSBs) to adopt MPSAS, it was noted that some FSBs had either not yet adopted the standards or had been delayed in their adoption. This study examines the compliance factor in Malaysian FSBs, specifically MPSAS compliance. Three factors, namely accounting education, technology and infrastructure, and cost-benefit are analysed to understand their impact on MPSAS compliance. A questionnaire survey was used as the research instrument, with 69 individuals representing various FSBs. Correlation analyses and logistic regression were conducted to establish the relationships between the independent variables and compliance with MPSAS. The findings only confirm that cost-benefit plays a significant role in MPSAS compliance among Malaysian FSBs. However, two variables had no statistically significant role in MPSAS compliance. This study could make valuable contributions to the research arena, assist policymakers in refining accounting standards and regulatory oversight, and facilitate improvements in educational approaches and resources to better prepare accounting practitioners for compliance with MPSAS and other relevant standards. The study provides valuable information to FSBs, the Accountant General Department, as well as the National Audit Department in guiding them in forcing compulsory standardization and compliance with the MPSAS. This is important to ensure the reliable and transparent disclosure of the government's financial reporting. Future research suggests assessing how implementing Malaysian public sector accounting standards (MPSAS) affects financial reporting within FSBs.

Suggested Citation

  • Ibrahim Bin Abu Sin & Shukriah Binti Sa’ad, 2025. "Identifying Factors Influencing Compliance of Malaysian Public Sector Accounting Standard (MPSAS): Evidence from Federal Statutory Bodies (FSBS)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 2186-2199, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:2186-2199
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    References listed on IDEAS

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