Description of Invention
This study investigates the key factors influencing the adoption of *true and fair view* reporting during the transition to accrual-based accounting in Malaysian Federal Statutory Bodies (FSBs). A survey of 132 FSBs reveals that *economic consequences* play a significant role in ensuring accurate financial reporting, while *political interventions* often compromise transparency. Accrual-based accounting under Malaysian Public Sector Accounting Standards (MPSAS) provides a clearer representation of government financial health compared to traditional cash-based methods. The study contributes to institutional theory and offers policy recommendations to enhance transparency and mitigate political influence in public sector financial reporting.