Readiness in Accrual-Based Accounting Implementation among Malaysian Public Healthcare Sector

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The aim of this study is to identify the level of readiness in the implementation of accrual-based accounting among Malaysian public healthcare sector and to examine the relationships between human resources competency, software and technology capability, accounting policies and standards suitability and the level of readiness in the implementation of accrual-based accounting. Data were collected using questionnaires from a sample of 200 administrative officers in the Finance Department at 20 public hospitals and State Health Departments.The finding showed that the level of readiness to implement accrual-based accounting in Malaysian public healthcare was moderately high. The results also revealed that there were significant relationships between human resources competency, software and technology capability and accounting policies and standards suitability and the level of readiness to implement accrual-based accounting. The results implicated that users of accounting system in Northern Malaysian public healthcare are ready to implement accrual-based accounting. However, improvement should be directed towards relevant areas as identified in the study to ensure a more successful and beneficial implementation of this new accounting system in Malaysian public sector.