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INTERNATIONAL Senate endorsement date:
ISLAMIC UNIVERSITY Version no:
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COURSE OUTLINE
1. Course Title: Public Sector Accounting

2. Course Code: ACC 4052

3. Credit Value: 3

4. MQF Level: 3 & 4

5. Affected Batch:

6. Centre of Studies: Kulliyyah of Economics & Management Sciences

7. Department/Unit: Accounting

8. Course Synopsis:

This course is designed to equip students with knowledge of accounting that is relevant
to public sector organisations. The course attempts to develop a wider and contextual
understanding of the role of accounting, as a vital tool to improve performance and
accountability of public sector organisations.

9. Course Classification within the Curriculum: Core course

10. Prerequisite(s) (if any): ACC 2501

11. Course Learning Outcomes

On completion of this course, students should be able to:

Blooms Soft skills Programme
No. Outcomes Taxonomy (KI) Outcomes (PO)
C A P
1 Apply different accounting techniques 1-5 CS, CT, 3, 7
relevant to public sector organisations
2 Evaluate financial reporting practices in 1-5 3,6,7 TS, 5, 6,
the Malaysian central government; and
3 Understand the emerging and 1-5 CS, 6,7,9
contemporary issues in public sector LL,LS
accounting

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 12. LO - Instruction Method - Assessment Alignment:
Outcomes Teaching-Learning Methods Assessment Methods
LO1 Lecture, discussion, group work Final exam, assignments
LO2 Lecture, discussion, group work Final exam, presentation
LO3 Lecture, discussion, group work Presentation, assignments

13. Assessment Methods Weightage:

Methods Percentage
Group assignment 30
Group Current issues 5
Mid Term 15
Final Examination 50
TOTAL 100

14. Student Learning Time:

1. Instruction Component Total Allocated Hours
1.1. Teacher-oriented methods
Lecture 21

1.2. Student-oriented methods

Group work 21
Total Instructor Contact Hours: 42
2. Independent Learning Component Total Estimated Hours
2.1. Reading and revision
Learning hours to grasp prescribed topics 28
2.2. Estimated hours for preparation toward assessments
Group assignments 20
Current issues presentation 4
Final Examination 23
3. Assessment Outside Instruction Hours Total Allocated Hours
Final Examination 3
TOTAL SLT 120

15. Course Contents and Related SLT:

Week Topics Face to Face Self-Learning
Hours Hours
1 PART I: INTRODUCTION 3 2
Introduction to Public Sector Accounting
The nature of public sector organisations
The role of accounting in public sector
The nature of public sector accounting
New Public Management in public sector
2 Introduction to Malaysian Government and 3 2
its Financial Management Framework
Structure of Malaysian Government

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 Relationship between States and Federal
government
Responsibilities of accounting officers
and financial controllers
Financial Management Framework
Stewardship and Accountability in Public
Sector
Accountability Framework in public
sector
Accountability from the perspective of
Islam
3-4 PART 2: MANAGEMENT ACCOUNTING 6 4
Management Accounting and Budgeting in
Public Sector
Introduction to management accounting
in public sector
Budgeting in public sector organisations
Traditional budgeting techniques:
Traditional Budgeting Systems
Planning, Programming and
Budgeting Systems (PPBS)
Zero Based Budgeting (ZBB)
Public Expenditure of Islamic state
5 Budgeting Practices in the Malaysian Public 3 2
Sector
Legal framework for budgeting
Budgeting process - national budget
Contemporary Budgeting Techniques
The Modified Budgeting System
(MBS)
Outcome Based Budgeting (OBB)
Evaluation of MBS and OBB against the
New Public Management
6 Budgetary Control in Public Sector 3 2
Roles of management accounting in
planning and control in public sector
Budgetary control process
Decentralization and budgetary control
Responsibility accounting
7 Procurement in Public Sector 3 2
Traditional procurement methods
Public Private Partnership
8-9 Performance Measurement in Public Sector 6 4
Importance of performance measurement
Characteristics of performance indicators
Challenges in performance measurement
Performance measurements in Malaysian
Public Sector:

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 Outcome-Based Budgeting
(OBB)
Activity-Based Costing (ABC)
Key Performance Indicators

10 PART 3 : FINANCIAL ACCOUNTING AND 3 2

REPORTING
Financial Accounting and Reporting in Public
Sector
Objectives of public sector accounting
and reporting
Users of public sector financial
reporting/information
Financial accounting bases:
Fund Accounting
Cash Accounting
Accrual Accounting
Modified Cash Accounting
Modified Accrual Accounting
Commitment Accounting
International Public Sector Accounting
Standards (IPSAS) by IFAC
11 Financial Accounting and Reporting in 3 2
Malaysian Public Sector
Legal framework of financial accounting
& reporting
Government Accounting Standards
Financial accounting & reporting reforms
in Malaysian Government
Structure and Annual Report of Malaysian
Government Accounts (Cash Accounting)
Role of the Accountant General and the
Accountant Generals Department
Accounts for Federal Consolidated Funds
Format and presentation of financial
statements
12-13 Accrual Accounting in Public Sector 6 4
Issues on accrual accounting transition
Selected MPSAS for Accrual
Environment
MPSAS 1
MPSAS 2
MPSAS 6
MPSAS 17
Comparisons of Financial Statements in
Accrual and Cash Bases Environment

Presentation of Group Assignment Week 12

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 14 PART 4: AUDITING 3 2
Auditing in Public Sector
Need for public accounts auditing
Scope of auditing in public sector
Performance Auditing
Internal auditing function
Institutional Framework:
Auditor General
National Audit Department
Public Accounts Committee
TOTAL 42 28

16. References:

16.1. Required
Rauf, F. A, et. al. (2015), Public Sector Accounting: Malaysian context. (4th
edition). Kuala Lumpur: Pearson.

16.2. Recommended
Malaysian Public Sector Accounting Standards (MPSASs)
Websites
The Treasury : http://treasury.gov.my/
The Accountant General Malaysia : www.anm.gov.my/
The Auditor General Department: http://audit.gov.my/
The Economic Planning Unit: www.epu.gov.my
International Public Sector Accounting Standard Board (IPSASB), the International
Federation of Accountants: www.ifac.org/public-sector
Federal Laws
Federal Constitution
Financial Procedure Act 1957
Audit Act 1957
Prepared by: Checked by: Approved by:

Signature: ______________ Signature: ______________ Signature: ______________

Name: Asst Prof Dr Siti
Alawiah Siraj
Department/Unit: Accounting
Name: Assoc. Prof. Dr.
Muslim Har Sani Mohamad
Head,
Dept of Accounting
Kulliyyah of Economics &
Management Sciences
Prof. Dr. Maliah Sulaiman
Dean, Kulliyyah of
Economics & Management
Sciences

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Date: 11 September 2017 Date:
Date:

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 ANNEX

I. Course Instructor Details

Semester: Academic Year:

No. Name Email Department
1. Assoc. Prof. Dr. Muslim Har muslimh@iium.edu.my Room A318,
Sani bin Mohamad Department of
Accounting

II. Programme Learning Outcomes

At the end of the programme, students are expected to be able to:

No. Outcomes Outcome Domain
1. Identify, classify, record, summarize and report
economic events which affect organizations. Define
and explain basic concepts in financial and managerial
accounting as well as taxation, finance and audit, Knowledge
whilst incorporating the Islamic perspective where
relevant.
2. Prepare financial statements in accordance with
nationally and internationally accepted financial
reporting standards for organizations and groups of
organizations. Perform simple and complex audits, Practical Skills
apply essential finance concept, prepare tax returns and
advise on tax matters in compliance with regulation
and standards.
3. Provide services to the community based on learned
knowledge, and cooperate with different stakeholders Social skills and
for the benefit of the society (ummah). Responsibilities

4. Behave in accordance with professional ethics and Value, Attitudes and

Islamic values. Professionalism
5. Communicate effectively with various stakeholders,
whether verbally or in written form. Communication

6. Process and evaluate financial data and non-financial

information, as well as suggest solutions to accounting Problem Solving and
issues taking into consideration professional ethics and Scientific Skills
Islamic values.
7. Use, evaluate and manage information technologies
Information Management
and systems for the efficient attainment of
and Lifelong Learning Skills
organizational objectives; and demonstrate an ability

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 to learn continuously and develop professionally in
tandem with the changes in the business world.
8. Analyze financial and non-financial information to
make optimal managerial decisions, which are ethical, Managerial and
at the operational, tactical and strategic levels. Entrepreneurial Skills

9. Work collaboratively in a management team as well as Leadership and Team Skills

demonstrate leadership qualities.

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 A. Description of Assignments

Instructional strategies: each week one session is for lecture and another is for group
assignment discussion and current issues presentation.

1. Group assignment (30 marks) There will be ONE group assignment during the
semester. Students need to form groups with a maximum of 4 members per group. The
assignment consist of 2 parts. For the FIRST PART (20 marks) of this assignment, each
group need to explore and examine an issue or a problem involving public sector that
is related to ONE of the following themes:
Human capital development
Communication and multimedia
Role of government in Innovation and Technology Transfer
Quality of Healthcare
Housing
Government role in developing Small Medium Enterprises
Public Transportation
High income economy
Road safety
Sustainability and Environmental Development
Urban poverty
Human trafficking
Others
Note: Each group should identify relevant Ministries or Government agencies
involving in the above mentioned issues or problems.
SECOND PART (10 marks) of the assignment: the group needs to assess the
performance and accountability of the agency under study from available public
records (Required: need to apply relevant accounting techniques to assess
organizational performance).
General instructions
Each week, students will need to discuss on work on the assignment during second class
session on progress and updates of the assignments.

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 Students need to search and find all relevant resources to answer questions that will be
developed in the course to complete the projects particularly on issues that are raised
by course instructors.
Assignment class presentation will be on week 12.
Final report for the project need to be submitted in 13th week. The report should be
written with 1.5 spacing and Times New Roman font size 12, stapled with the appendix
and a cover page listing the title, group members matric number, course title and the
date.

Assignment Evaluation:
Component Weightage Assessor

Group discussion participation 15% Instructor

Group presentation 25% Instructor

Final report 60% Instructor

Group discussion participation covers attendance, degree of preparation for class,

listening and communication skills, ability to bring new and relevant information to the
group, ability to support and improve the functioning of the group as a whole.

The presentation marks will be awarded based on the following criteria:

Clarity of ideas - 5 mark
Comprehension of material presented - 15 marks
Ability to respond to questions - 5marks
Total - 25 marks
The breakdown of the marks for final report is as follows:
Content - 70%
Language - 10%
Creativity -10%
Organization - 10%
2. Individual portfolio (25 marks) every student needs to prepare a portfolio
individually for each topic, students are required to compile relevant one current

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 issue with reflection note and comments, discussion note of any two concepts, and at
least 1 item related to the topic with reflection to the topic (i.e photo, graph, data etc).
3. Current issues presentation (5 marks) starting from week 2, each group is required
to present current issues. Each group must be able to discuss implication of the current
issues discussed on financial management or accounting in public sector. Current issues
will be selected from current issues collected by each of team members for their
portfolio works.

B. Course policy on examinations and other assignments:

No make-up exams or assignments are given in this course, in line with the policy of the
Department of Accounting. Students who are absent for examination and other assignments
without permission will be given a grade of 0 . Those absent with valid reason and able to
show supporting documents will be allowed to carry the marks missed to the final examination.

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