ISSN 2394-5125
 

Research Article 


FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE

farquarul Ariffin Abdullah, kamaruzzaman Muhammad.

Abstract
The Malaysian government is on track to complete the implementation of accrual accounting by 2021. One of the main hurdles is to establish asset opening balance as well as its valuation accuracy due to the intrinsic nature of cash basis accounting. Based on other countries experience, the expectations by stakeholders on the first accrual financial statement are exhilarating. By employing ISA315 on MPSAS17, the study explored the underlying factors that influence valuation accuracy of public sector property, plant and equipment, from the perspective of human, system and control environment, specifically the preparer’s competency, completeness of asset information and asset control procedure. It specifically studies on the perception of public sector accountants on the underlying factors. This study is based on data obtained from a survey questionnaire. The data were analysed to evaluate and determine the contributing factors via factor analysis and multiple regressions. The findings of this study suggested that valuation accuracy of public sector PPE is linked to asset information maintenance and monitoring as well as asset control procedure due to the nature of asset itself. Preparer’s competency did not contribute to the valuation accuracy as the work itself is simplistic and did not require professional judgment of an accountant. The study implied that to ensure valuation accuracy for PPE in the financial statement, emphasis should be placed on asset information data and reliability of ICT system; and on surrounding control environment. Verifier of public sector assets should consider integrating the result as additional risk factor in their procedure.

Key words: Property, plant and equipment, accrual accounting, human control, control environment


 
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How to Cite this Article
Pubmed Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad,. FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE. JCR. 2020; 7(19): 459-471. doi:10.31838/jcr.07.19.60


Web Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad,. FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE. http://www.jcreview.com/?mno=102167 [Access: September 14, 2020]. doi:10.31838/jcr.07.19.60


AMA (American Medical Association) Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad,. FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE. JCR. 2020; 7(19): 459-471. doi:10.31838/jcr.07.19.60



Vancouver/ICMJE Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad,. FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE. JCR. (2020), [cited September 14, 2020]; 7(19): 459-471. doi:10.31838/jcr.07.19.60



Harvard Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad, (2020) FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE. JCR, 7 (19), 459-471. doi:10.31838/jcr.07.19.60



Turabian Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad,. 2020. FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE. Journal of Critical Reviews, 7 (19), 459-471. doi:10.31838/jcr.07.19.60



Chicago Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad,. "FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE." Journal of Critical Reviews 7 (2020), 459-471. doi:10.31838/jcr.07.19.60



MLA (The Modern Language Association) Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad,. "FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE." Journal of Critical Reviews 7.19 (2020), 459-471. Print. doi:10.31838/jcr.07.19.60



APA (American Psychological Association) Style

farquarul Ariffin Abdullah, kamaruzzaman Muhammad, (2020) FACTORS INFLUENCING PROPERTY, PLANT AND EQUIPMENT VALUATION IN PUBLIC SECTOR FINANCIAL STATEMENTS: ACCOUNTANTS’ PERSPECTIVE. Journal of Critical Reviews, 7 (19), 459-471. doi:10.31838/jcr.07.19.60