Changes in the Recording of Cash-Based Accounting Methods to Accrual Base

Dian Islamiatus Sa'Diyah,Indrawati Yuhertiana

doi:10.47747/ijcse.v2i2.248

Abstract

This study aims to determine changes in public sector accounting from cash basis to accrual basis and which one is better than the two bases. This study uses a qualitative method through literature study that combines a number of reliable data sources such as journals, books, articles, legislation, research results and those relevant to the problem being studied, where 12 of the 42 articles were selected and published between the 2013-2018 period. . The change in cash basis reform towards accruals consists of 3 phases, namely the pre-autonomy era, the transition era and the post-regional autonomy era. Of the two bases, the accrual basis is better because the accrual basis produces more transparent accounting reports for the sake of realizing good governance.

Highlights

Changes must be made to lead to changes for the better, which is called reform
Sources of data from the writing of this study are Research gate and Google Scholar. It was obtained from 42 journals, 5 regulations in Indonesia, 2 books selected as the basis for literature sources related to the keywords "Accounting Changes", "Accounting Reforms'," Accrual Basis "and" Cash Basis "
Based on the literature study that the cash basis accounting reform towards accrual basis is implemented in stages, namely the existence of 3 phases, namely in the period before autonomy, transition and post regional autonomy

Summary

Introduction

Changes must be made to lead to changes for the better, which is called reform. You need to change for the better. Change for the better can be realized by a government system that is clean, accountable, transparent and credible. (Langelo, Saerang and Alexander 2015) Good governance requires changes in government accounting because the accounting process provides financial information to all parties. Accounting changes must be based on a strong foundation, namely the existence of SAP. Government accounting reform (Suryanto, 2018) is an accounting reform which is a process of transition from a traditional system to a modern system. Accounting with the traditional system basically adopts cash-based accounting with single records, while modern accounting adopts an accrual basis using multiple records. The cash basis is a recording method that can identify transactions or recognize transactions based on whether cash has been received or not, while the accrual basis system is a recording method that can acknowledge transactions even though new cash can enter or leave in the future or not. the occurrence of cash receipts and disbursements

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