The Presentation Formats of Malaysian Local Authorities' Financial Statements

摘要

Malaysian local authorities play a crucial role in providing services to the community. However, the performance of local authorities has been subjected to various criticisms which include poor services rendered to the locals and the inefficiency of local authorities' management. Malaysia is experiencing rapid development with a vision of becoming a fully developed nation by 2020. In order to achieve this, an efficient financial management system is required in all government agencies including the local authorities. The efficiency depends on the effectiveness of the financial management and the quality and reliability of the financial reports prepared. A study was carried out to compare the formats of financial statements formats adopted from 2004 to 2008. 75 local authorities (out of 96 local authorities in West Malaysia) responded by sending their audited financial statements. The trend analysis revealed that the local authorities were not consistent in the formats adopted.