The Accountant General’s Department under the Ministry of Finance and Economic Affairs has launched a series of nationwide training sessions for accountants in Ministries, Departments, and Agencies (MDAs), aimed at strengthening public financial reporting systems by transitioning from cash-based to accrual-based accounting.
The training officially opened by Director of Accounting Services in the Ministry of Finance under the office of the Accountant General, Chifundo Kapulula, is part of Malawi’s broader financial reform strategy as the country prepares to fully adopt the International Public Sector Accounting Standards (IPSAS) by 2028.
Speaking during the opening session, Kapulula said the government is currently at the modified accrual stage one step away from full accrual accounting. The phased approach involves moving from cash basis (Stage 1), to modified cash (Stage 2), then modified accrual (Stage 3), and finally to full accrual accounting.
“We want our financial statements to be comparable, transparent, and accountable,” said Kapulula.
“To achieve this, we are conducting comprehensive training sessions for various levels of financial personnel from principal and chief accountants to heads of finance.”
He added that the move will enhance the quality of financial reports, making them more understandable and globally comparable.
“By 2018, we had initially planned to adopt full accrual, but we experienced delays. Now, we are back on track, targeting 2027 as a milestone year, with full implementation expected by 2028,” Kapulula explained.
According to Kapulula, embracing IPSAS will allow Malawi to align its financial reporting systems with global standards, enabling easier comparison of financial statements with other countries such as Tanzania and Namibia.
Echoing the sentiments, Deputy Director responsible for Accounting Services in the Accountant General’s Office, Malumbo Kausi, described the reform as key in mindset and practice.
“Globally, countries are embracing accrual accounting because it provides more comprehensive and reliable financial information. Tanzania, for example, has already adopted full accrual IPSAS and is making significant developmental progress. One reason is that their financial statements empower policymakers to make sound economic decisions,” said Kausi.
He added, “This reform calls for a change in mindset. Accounting officers must now begin thinking beyond traditional cash accounting and embrace the complexity and value of accrual-based reporting.”
Participants at the training also hailed the initiative. Fatima Dossi, Finance Manager at the Malawi Revenue Authority, said the training is timely and impactful.
“It is empowering us to understand how to prepare financial statements in line with the accrual concept. Under cash accounting, we only recognise expenses at the point of payment. However, under accrual accounting, we recognise expenses as soon as we receive an invoice. This improves accuracy and enables comprehensive reporting of all revenues and expenses within a given period,” she said.
The training forms part of a continuous capacity-building programme aimed at equipping government accountants with the necessary skills and knowledge to meet international financial reporting standards.
