Conceptual Framework on Antecedents of True and Fair View Reporting Surrounding Migration to Accrual-Based Accounting by Public Sector Entities: A Case of Federal Statutory Bodies (FSB) in Malaysia

Following the institutional reforms in Malaysia, the Federal Government issued Treasury Circular PS 1.2/2020. Federal Statutory Bodies (FSBs) are now required to adopt the Malaysian Public Sector Accounting Standard (MPSAS) as the standard for preparing financial statements. While most private sectors strongly embrace accrual accounting systems and derive many benefits from them, the practice and application in the public sector, including FSBs, is still in its infancy. Therefore, this study examines the antecedents of true and fair view reporting in the context of migration to accrual accounting by FSB in Malaysia. This study is due to the lack of research on accrual accounting in the public sector, as researchers rigorously focus on the private sector that controls the economy. In addition, there are few studies on the conversion of the public sector in emerging economies to accrual accounting. The study provided a conceptual discussion on the antecedents that potentially affect the true and fair view reporting through the adoption of accrual accounting. The discussion is expected to benefit many stakeholders, especially regulators and policymakers, as emerging economies such as Malaysia continue to actively pursue institutional reforms. By adding new variables from the study so that they can be used in various and extensive aspects of the research

EVALUATING THE IMPACT OF INNOVATION ON MOSQUE COOPERATIVES’ ADAPTIVE CAPACITY IN THE AGE OF DISRUPTION

The disruptions such as the pandemic Covid-19 driven Movement Control Order (MCO) and the Fourth Industrial Revolution (4IR) have delivered dynamism in the form of accelerated change, technological innovation, convergence, new sources of growth or disparities, and new technology costs and investments. These are expected to have an impact on the economy, society, and politics of the industry and its sub-sector. Nevertheless, the existing Dasar Koperasi Negara 2 (DKN 2), 2011-2020, and the most recent mid-term review report of DKN 2 did not specifically mentioned about preparing or building the country’s co-operative sector based on those disruptions, though undeniably there are some elements in these two documents reflecting such move towards it. The silence and absence cast doubt on local mosque cooperatives' ability to adjust in the face of upheaval. It also creates concern on driving factors of mosque co-operatives’ adaptive capacity. Thus, this proposed study aims to ascertain elements of mosque co-operatives’ 4IR adaptive capacity, then to evaluate the interactions and relationships between organisational, product & process, and social innovation and adaptive capacity of mosque co-operatives. Employing survey method, this study will engage the Chairman of Board of mosque co-operatives in state of Selangor as a respodent. The feedback will be analysed using the Structural Equation Modelling technique via SmartPLS. Understanding the variables that drive innovation allows mosque cooperatives to strengthen their adaptive ability by concentrating efforts on improving specific competencies and boosting the sub-preparation sector's for future shocks. It also provides insights to key stakeholders viz. MEDAC, SKM, ANGKASA, and IKM in planning enhanced training moduls, standard operating procedures, action plan relating to a specific innovation process that can enhance mosque co-operatives’ adaptive capacity, including in in finalising the Dasar Koperasi Negara 3, 2021-2030. This proposed research aims to answer the following research questions:- 1. How organisational innovation affect mosque co-operatives’ adaptive capacity? 2. How product and process innovation affect mosque co-operatives’ adapative capacity? 3. How social innovation affect mosque co-operatives’ adapative capacity

Sensitivity Of Socially Responsible Investment Behaviour To Experience And Size Of Funds

This paper examines the moderating effect of experience and size of fund towards socially responsible investment (SRI).A survey was conducted to get the responses of fund managers, and data were analysed using a multi-group approach of Structural Equation Modelling (SEM).At intentional level, there was a significant moderating effect on the relationship between attitudes and caring ethical climate towards an intention to SRI among less experienced fund managers. There was a significant moderating effect on the relationship between subjective norms and perceived behavioural control towards an intention to SRI among more experienced fund managers. There was also a significant moderating effect on the relationship between subjective norms and caring ethical climate towards an intention to SRI among small-sized fund managers. At behavioural level, there was a significant moderating effect on the relationship between moral intensity and SRI behaviour among less experienced fund managers. There was also a significant moderating effect on the relationship between moral intensity and caring ethical climate on SRI behaviour among bigger-sized fund managers. This paper conduits the literature gap by expanding the understanding on the moderating impact of experience and size of fund towards SRI, provides insights to policy makers in carrying out appropriate talent development strategies in accumulating the support of fund managers towards SRI-related initiatives in the capital market, and reveals the potential contribution of fund manager talent management in sustainable development through SRI. The paper offers vision on fund manager talent management to forefront the progress of SRI in emerging economies

THE IMPACT OF PANDEMIC COVID-19 ON THE ACTIVISM, FINANCIAL AND DIGITAL WELL BEING OF MOSQUE INSTITUTION

The pandemic driven Movement Control Order (MCO) caused pain to mosque institutins in terms of activities, financial and digital. As the pandemic Covid-19 hit the country in early 2020, mosques were closed, number of congregation reduced, Friday and tarawih prayers were postponed, sadaqah collection dropped, and lesser knowledge based activities or Islamic teachings programmes were recorded due to social distancing order as the authority intended to stop the lethal virus transmission. In certain circumstances, social gathering activities were permitted at mosque; however, with a strict permission and stringent standard operating procedures. Coupled with lack of digital literacy, skills and equipment, as well as insufficient financial resources, mosque's engagement and visibility with larger societal members were also unfavourably impacted. Consequently, mosque institution is not able to carry out its function effectively as a centre of knowledge, centre of economy, and centre of community engagement. The research aims to explain the impact of pandemic Covid-19 towards mosque institutionn. Specifically, this conceptual paper discusses the implication of pandemic Covid-19 on activism, financial and digital well-being of mosques. It explores initial publications like academic articles, news, reports, and ministerial statements about the issue. The findings indicated the impact of pandemic Covid-19 towards mosque institutions’ well-being in the three areas i.e. activism, financial, and digital, and the response of mosques’ leadership and Muslim community. The study offers conceptual discussion, and generalisation take place cautiously. The value of the research embedded in its intention to assess the impact of pandemic Covid-19 on mosque institutions from three different dimensions namely activism, financial and digital. Moreover, the findings shall enhance the preparedness of mosque institution in those three areas to brace future shock. The findings also shall support the aspiration of SDG 16 in preparing mosque as a peace, justice and strong institution for community

Examining the Effects of the Pandemic on Entrepreneurial Activities among Urban Single Mothers: An Exploratory Study

This study was conducted in Malaysia to examine the effectiveness of the microfinance programme for urban single mother entrepreneurs in MSMEs during the COVID-19 pandemic and Movement Control Order (MCO). Implemented as a response to the pandemic, the MCO significantly disrupted businesses, particularly MSMEs. The study aimed to investigate the relationship between empowerment factors (economic, social, digital, and psychological) and governance aspects concerning the effectiveness of microfinance programmes. Using a positivist paradigm and employing quantitative methods through online questionnaire distribution, this research established a framework based on empowerment theory. The findings underscore the importance of economic empowerment, digital empowerment, and governance aspects for microfinance programme success, and provide empirical backing for suitable mitigation strategies for MSME entrepreneurs. The study emphasises the importance of supporting single mother entrepreneurs through various developmental activities, technical and vocational training, and comprehensive financial and non-financial aid initiatives. It stresses the critical role of women, particularly single mothers, in propelling societal and economic advancement, and advocating for their empowerment through targeted interventions. Overall, the findings enhance understanding of the challenges MSMEs face during crises, and offer insights for policymakers and microfinance agencies to strengthen support for single mother entrepreneurs in navigating future challenges and fostering economic resilience and development

Women influence in Environmental, Social and Corporate Governance Reporting in Malaysia

Malaysia is ranked 57th within Southeast Asia in Environmental, Social and Corporate Governance (ESG) reporting. However, the application is focused on the amount of information disclosed rather than the content. Recent studies recommended that the focus should now be shifted to the quality of information disclosed. Purpose – The current practice of ESG reporting is impartial disclosure from financial reporting. Therefore, this study aims to determine factors that influence ESG reporting quality and their relationships with ESG reporting practices by federal statutory bodies in Malaysia

Factors Influencing True and Fair View Reporting of Federal Statutory Bodies in Malaysia

Background - After the institutional reforms happened in Malaysia, the Federal Government had issued the Treasury Circular PS 1.2/2020, FSBs now must adopt Malaysian Public Sector Accounting Standard (MPSAS) as the standards for the preparation of the FSBs’ financial statement. Hence, the study is intended to focus on the factors influencing the true and fair view of the FSBs’ reporting. Purpose - The study is to investigate the influence of political intervention, economic consequences, societal values, balancing cost-benefit concerns on the true and fair view reporting and gender as moderating role. Design/methodology/approach - The study is positivism research and will be conducted the quantitative method as in self-administered questionnaire and closed-ended questions, bilingual (English and Malay) questionnaires will be submitted via email to Chief Financial Officer (CFO) of the FSB. Sample of 97 questionnaire will be submitted out of 132 population by using (Krejcie and Morgan, 1970) table. The theory used is the Institutional Theory. Findings/Expected Contributions - The expected findings are, all factors; political intervention has positive and significant influence on the true and fair view reporting, economic consequences have positive and significant influence on the true and fair view reporting, societal values has positive and significant influence on the true and fair view reporting, balancing cost-benefit concerns have positive and significant influence on the true and fair view reporting. While gender moderates the relationship of political intervention, economic consequences, societal values, and balancing cost-benefit concerns on true and fair view reporting. The reasons of the expected findings are to ease the adoption of MPSAS 1 in FSB, to ensure the plans and strategies to reduce fraudulent activities meeting objectives, to highlight related initiatives, acts, regulations, programmes and policies such as Institutional reforms initiatives which is New Public Management Reforms, National Anti-Corruption Plan (NACP) and New Economic Model (NEM) programmes which initiating to improve transparency or institutional reform in FSBs and to widened up and enhance the scope of the Institutional Theory by adding up new variables from the study so that in can be used in various and vast aspects of research. Research limitations - The limitation is to make sure the questionnaires are being answered by the CFOs themselves not their representative. Originality/value - Lack of research being done in public sector and researchers are more rigorously studied more towards private sectors as the private sectors are the market controller to the economy. This is because previous research of public sector disclosure has tended to focus solely on developed countries and very less in Malaysi

An Exploratory Assessment on Environmental, Social and Governance (ESG) Disclosure among Federal Statutory Bodies in Malaysia

Background - As part of institutional reform initiatives, ESG disclosure has taken a central position. The enhanced ESG disclosure attracts formidable investment from global sustainable responsible investors. Numerous Malaysian companies have evolved their reporting practices by adopting ESG. While private�sector ESG reporting is striding ahead, the practice in the public sector is still taking early steps including among the Federal Statutory Bodies (FSB); despite the issuance of the improved PA 3.2 of Treasury of Circular on presentation and preparation of annual reports and financial statements. As the governance (G) aspect is commendable, the components of environmental (E), and social (S) require greater attention. Moreover, the PA 3.2 provides general guidelines and offers room for flexibility with regard to environmental and social disclosure. Given the scenario and with the aspiration to nurture potential ESG champions among BBP, as well as providing clarity of definition and scope of ESG disclosure, this study is proposed. Purpose - The study aims to examine the disclosure level of ESG among BBP using the Value-Based Intermediation (VBI) Framework by Bank Negara Malaysia, to record the pattern and the organizational attributes of ESG reporting BBP, and to ascertain the disclosure reasons. Design/methodology/approach - This study is achieved through scanning published reporting statutory bodies’ annual reports and financial statements. First, read the Value-Based Intermediation (VBI) Framework for ESG disclosure. For a better understanding, the framework will be read at least twice, as recommended by Owusu-Ansah (1998). Second, developing the disclosure checklist based on the VBI Framework for ESG disclosure. This initial disclosure checklist shall be reviewed by at least two accountants from the Accountant’s General Department, in order to achieve content validity; and if any contradiction occurred; the disclosure checklist will be finally verified by an officer of Bank Negara Malaysia (BNM) who are responsible towards the value-based intermediation framework. The verification technique is consistent with the approach of Abdullah & Minhat (2013). Next, gathering and reading statutory bodies’ annual reports and financial statements for the year 2020 relating to ESG components. For a better understanding of the nature and complexity of reporting statutory bodies’ operations, each annual report and financial statement will be read at least twice (Abdullah & Minhat, 2013; Cooke, 1989). There are about 128 statutory bodies of the federal government as of the end year of 2020. Findings/Expected Contributions - The expected results include obtaining insights, understanding, and information about the disclosure level of ESG components among statutory bodies of the federal government using the VBI Framework. In addition, the profile and pattern of ESG disclosure among statutory bodies of the federal government Research limitations - The practice of reporting ESG in the public sector is still taking early steps. Therefore, recording the pattern and ascertaining the disclosure purpose will be challenging. Originality/value - ESG scores provide a platform to increase the transparency of FSB regarding their sustainability efforts and condensing it in one number (the ESG disclosure score)

Unveiling the transition: Factors influencing true and fair view reporting in the accrual-based accounting migration of Malaysian federal statutory bodies

This study delves into the factors impacting the adoption of true and fair financial reporting during the transition to accrual accounting in Malaysian Federal Statutory Bodies (FSB). Despite administrative reforms from the 1980s to the most recent reformation, Malaysia’s public sector performance has lagged, prompting this investigation into the adoption of Malaysian Public Sector Accounting Standards (MPSAS) and accrual accounting in response to the delayed performance of Malaysia's public sector. The research was based on self-administered, Five Likert-scale questionnaires distributed to all heads of public accountants in 132 FSBs. There were 99 questionnaires returned for analysis. The final analysis used 99 usable responses, and the data was analyzed using SPSS. The results indicated significant correlations between Economic Consequences, Political Interventions, and True and Fair View reporting. Economic consequences were found to have the most significant impact on true and fair reporting, supported nuanced relationships, and political interventions. The findings of the regression analysis provided evidence for intricate associations, however, it is important to realize some constraints methods were acknowledged, such as demographic limits and the reliance on quantitative methodologies. The independent Board of Directors (BOD) and the higher-level management ensure those factors, such as the impact of Political Interventions on the reporting process undertheir scrutiny, as well as take proactive implementation measures to prevent the escalation of the management level from worsening. Top management can ensure that, the economic decisions made have to be thorough, as they dramatically impact reporting. The study provides valuable insights into financial reporting dynamics, suggesting avenues for future research to address identified limitations and incorporate qualitative methodologies

Customer Journey Maps of Muslim Young Agropreneurs

The Malaysian government has targeted to encourage more youths to venture in agricultural sector to be the agriculture-related entrepreneurs (agropreneur). Ministry of Agriculture (MOA) through its agencies include Malaysian Agricultural Research and Development Institution (MARDI) were tasked to execute the Young Agropreneur Programme to grow young agropreneurs in Malaysia. This study aims to develop a template of customer journey map to investigate the experience of Muslim Young Agropreneurs under MARDI’s Young Agropreneur Programme through review of literature. This article reviews the literature related to customer journey map and applies the concept to the context of Muslim Young Agropreneurs’ experience with MARDI’s Young Agropreneur Programme. The expected output of this article is a template of customer journey map for MARDI’s Young Agropreneur Programme. The journey map would capture the channel, customer expectation, experience and emotion throughout their contact with the MARDI’s Young Agropreneur Programme. This article reviews the literature of customer journey map to be used to study the experience of Muslim Young Agropreneurs in dealing with MARDI. The comprehensiveness of customer journey map can help to more comprehensively capture their experience in dealing with the service provider