Abstract
This study was conducted to determine the factors and their influence on accrual accounting reform in the public sector in Vietnam. Combining qualitative and quantitative research methods based on empirical surveys of 268 accountants, controllers, and auditors working in state agencies such as the Department of Finance, state treasuries and agencies receiving revenues from the state budget in 2019. This study shows that six factors influence the reform of the accounting system in the public sector in Vietnam to accrual-based: accounting staff – especially their expertise, competence, and work experience; training and support of the consulting experts; costs of the accounting reform; level of information technology application; funding and assistance from international organizations; legal environment.At the same time, the accrual-based accounting reform will have a positive impact on improving the transparency and efficiency of public sector operations in Vietnam. Among the factors affecting accounting reform, the legal environment factor is the most influential determinant, followed by the contingent of accountants. The study’s limitation is that the new experimental investigation is only conducted with a small sample size and in a short period. However, the research results are also a useful reference for those who are interested in the context that Vietnam is preparing to have strong reforms in accounting in the public sector in the coming time.
Highlights
For every country, the public sector accounting system plays a very important role because it is a system of rules and application of principles, methods, and accounting guidelines, which organizations can rely on to prepare their financial reporting package, evaluate the fairness, accountability, and transparency of the financial status in public sectors
The enterprise re- the hypothesis is formulated as follows: source planning (ERP) system is considered as a centralized system that provides tight integra- H5: Funding and assistance from international tion with all major enterprise functions, decreases organizations have a positive effect on the acthe processing time, and increases quality assurcrual accounting reform in the public sector
Based on the previous studies, the hypothesis is formulated as follows: H7: Accrual accounting reform has a positive effect on the transparency and overall performance in the public sector
Summary
The public sector accounting system plays a very important role because it is a system of rules and application of principles, methods, and accounting guidelines, which organizations can rely on to prepare their financial reporting package, evaluate the fairness, accountability, and transparency of the financial status in public sectors. The enterprise re- the hypothesis is formulated as follows: source planning (ERP) system is considered as a centralized system that provides tight integra- H5: Funding and assistance from international tion with all major enterprise functions, decreases organizations have a positive effect on the acthe processing time, and increases quality assurcrual accounting reform in the public sector. The legal environment factors affecting the accounting reform include rules or standards on the Eriotis, Stamatiadis, and Vasiliou (2011) found transparency of the public sector’s financial statethat the quality of information technology has ments, the internal control system, the need for a positive effect on the accounting improve- the use of information from different users, finanments in public hospitals in Egypt. Based on the previous studies, the hypothesis is formulated as follows: H7: Accrual accounting reform has a positive effect on the transparency and overall performance in the public sector
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