Integrated reporting and ePBT system implementation in Malaysia local authorities

Noorhayati, Mansor and Sharifah Robiah, Tuan Hazam and Asniati, Bahari (2019) Integrated reporting and ePBT system implementation in Malaysia local authorities. International Journal of Accounting, Finance and Business, 4 (22). pp. 90-100. ISSN 0128-1844

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Abstract

Integrated Reporting is now trending in advanced countries but in Malaysia, it is still a voluntary practice. The new reporting approach was introduced to overcome the weaknesses in sustainability reporting. This is achieved by including non-financial information in the integrated reporting. Many challenges come with the integrated reporting implementation and one of them is related to the efficiency of Accounting Information System (AIS). To improve the public sector reporting quality, investment in AIS has been given the highest priority by the Malaysian government. An electronic system known as ePBT was introduced and adopted by the local authorities to address the reporting issues. In the Malaysian local authorities, reporting quality is still an on-going problem and deserves a proper study. This study discusses the level of ePBT adoption and its weaknesses. Challenges to the implementation of integrated reporting at the local authorities were also presented. A qualitative approach using face-to-face interviews was adopted in order to obtain primary data from the users of the ePBT system. The sample consists of six selected local authorities and each of them was represented by an accountant or assistant accountant. Semi-structured questions were used during the interviews. The results show that only 50 per cent of the respondents have implemented the ePBT system. Two major weaknesses of the ePBT system were identified namely, lack of financial support and low level of technical skill for system integration. This study highlights issues for local authorities to consider in its future implementation of the new integrated reporting.

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