Malaysia decides to switch to accrual accounting from the current cash-based accounting system in the public sector.
Accrual accounting takes into account more than just cash flows,
but all the Government’s assets and liabilities, including off-balance
items as well as pension obligations for public servant.
The real issue about how strong a Government’s balance sheet is not
determined by the level of its debt to gross domestic product, or GDP,
but the actual net worth of the Government Net worth was a better gauge of the Government’s fiscal position as it
took into account all the assets that the state had against its total