The Influence of The Application of Fair Value and Accrual Basis on The Quality of Local Government Financial Statements (A study on Government of Region IV West Java)

Abstract

Based on PP No. 71 Year 2010, to release a useful financial statement, there has to be good quality of information. The quality of the statement is reflected from its qualitative characteristic whih are relevant, reliable, comparable and comprehensive. The application of fair value and accrual basis is believed to be able to increase the quality of a financial statement because the calculation of fair value will influence the reliability and the relevanceof information in the financial statement and the accrual basis accounting that will create a valid, accurate, comprehensive and relevant financial statement. this research aims to iinvestigate the influence of the application of fair value and the accrual basis accounting toward the quality of local government's financial statement. The test instrument in this research is multiple linear regression analysis.To accomodate the research aim, the method used in this research is quantitative with a survey approach through questionaire as its medium of data collecting. The questionaire is distributed to authorized personnel in charge of compiling the local government's financial statement in Region IV West java.The research result shows that the application of the fair value and the accrual basis affect the quality of local government's financial statement.