Question 5 (a) Malaysia is a parliamentary democracy and constitutional monarchy country. The country has three tiers of Government namely Federal, state and local government. The regular elections held at the national and state levels. However, there have been no elections at the local government level since they were suspended in 1965. The constitution of Malaysia makes provision for local government and the main governing legislation includes the Local Government Act 1976 (Act 171) for the main peninsula and the Local Authorities Ordinance 1996 and Local Government Ordinance 1961 for the states of Sabah and Sarawak respectively. While the local authorities are under the purview of the respective state governments, the Ministry of Housing and Local Government is responsible for formulating, executing and monitoring all laws pertaining to local government while local authorities in the Federal Territories are subject to the purview of the Ministry of Federal Territories. There are three types of local authority in Malaysia that are city councils, municipal councils and district councils. Required: i. State the criteria of local authority mentioned above. (9 Marks) ii. Explain the circumstances where the federal government can extend its authority to the local government. (4 marks) (b) Accrual Accounting is a well-accepted method of accounting worldwide and is mainly used in the private sector. Increasingly, the Public Sector also moving towards full implementation of Accrual Accounting as its helps the Government to obtain a better picture of the performance according to the Government policies. Discuss the differences between Cash Accounting and Accrual Accounting. (12 marks) Question 5 (a) Malaysia is a parliamentary democracy and constitutional monarchy country. The country has three tiers of Government namely Federal, state and local government. The regular elections held at the national and state levels. However, there have been no elections at the local government level since they were suspended in 1965. The constitution of Malaysia makes provision for local government and the main governing legislation includes the Local Government Act 1976 (Act 171) for the main peninsula and the Local Authorities Ordinance 1996 and Local Government Ordinance 1961 for the states of Sabah and Sarawak respectively. While the local authorities are under the purview of the respective state governments, the Ministry of Housing and Local Government is responsible for formulating, executing and monitoring all laws pertaining to local government while local authorities in the Federal Territories are subject to the purview of the Ministry of Federal Territories. There are three types of local authority in Malaysia that are city councils, municipal councils and district councils. Required: i. State the criteria of local authority mentioned above. (9 Marks) ii. Explain the circumstances where the federal government can extend its authority to the local government. (4 marks) (b) Accrual Accounting is a well-accepted method of accounting worldwide and is mainly used in the private sector. Increasingly, the Public Sector also moving towards full implementation of Accrual Accounting as its helps the Government to obtain a better picture of the performance according to the Government policies. Discuss the differences between Cash Accounting and Accrual Accounting. (12 marks)