Framing public governance in Malaysia: Rhetorical appeals through accrual accounting

Highlights

Fig. 1 Implementation Strategies.

Fig. 2 Critical Success Factors.

Fig. 3 Governance Framework.

•	The study focus is rhetorical appeals to logic, credibility and emotion in framing accrual accounting for good governance and anti-corruption.

•	We provide a case study of the adoption of accrual accounting in Malaysia employing the theoretical lens of Goffman frame analysis.

•	Accrual accounting can potentially improve governance and anti-corruption, but is not a panacea; other institutions also need to be strong.

•	The discourses around adoption of accrual accounting point to the potential of accounting for broader social outcomes.

Abstract

In government, the challenges of governance and anti-corruption are exacerbated by accounting not being fit for purpose. In developing countries, many governments adopt accrual accounting as a panacea. Drawing on Goffman's frame analysis, and rhetorical appeals to logic, credibility and emotion, this paper examines the adoption of accrual accounting in Malaysia. It was found accrual accounting has potential for keying governance and anti-corruption. However, rhetorical appeals that attempt to legitimate neo-liberalism and engender public support in the name of progress were hindered by perceptions of endemic corruption and relatively weak democratic institutions of ‘good’ governance common to developing countries.

Keywords:

• Framing
• Rhetoric
• Accrual accounting
• Governance
• Corruption
• New public management (NPM)
• Malaysia
• Developing countries

Notes

1 Bloomberg (2016) provides a detailed timeline of the events that are merely summarised here. Please see http://www.bloomberg.com/news/articles/2016-02-02/timeline-malaysia-s-spiraling-1mdb-state-fund-controversy.

2 Internationally, this case is still under investigation. On 31 December 2015, it was reported in the Staronline that MACC has completed the investigation and handed over its report to the Attorney General for further action. On 20 July 2016, this issue further rose to prominence when the US Department of Justice filed a civil suit to 1MDB under the Kleptocracy Asset Recovery Initiative, a federal initiative to recover assets stolen by foreign officials and laundered in the US. As part of this, the US Department of Justice has forced the Board of Directors of 1MDB to issue a statement that the 2013 and 2014 audited financial statements should no longer be relied upon by any party.