Accounting Reform Research Articles

Implementation of foreign practice of regulation and accounting and reporting in Russia

The reform of accounting and reporting in Russia began in the 1990s. The benchmark was taken on International Financial Reporting Standards, as many countries use these standards. IFRS have a number of advantages, such as simplicity, objectivity, international comparability. The author of the article gives the main problems, as a result of which, for almost thirty years, national standards have come very slightly closer to international ones. The author of the article gives the main problems, as a result of which, for almost thirty years, national standards have come very slightly closer to international ones. In the comparative analysis of accounting and the preparation of accounting and tax reporting according to Russian Accounting Standards (RAS) with International Financial Reporting Standards (IFRS), fundamental differences were revealed in the reflection of accounting objects in financial statements.

School testing culture and teacher satisfaction

Teachers, as frontline providers of education, are increasingly targets of accountability reforms. Such reforms often narrowly define ‘teacher quality’ around performative terms. Past research suggests holding teachers to account for student performance measures (i.e. test scores) damages their job satisfaction, including increasing stress and burnout. This article examines whether the relationship between test-based accountability and teacher satisfaction can be, in part, explained by the emphasis of student test scores in teacher appraisals. Although historically used for formative purposes, recent research demonstrates that across a large range of countries, nearly all teachers work in a system where their appraisal is based, in part, on students’ test scores. Using data from the 2013 Teaching and Learning International Survey, we pool data from 33 countries to evaluate the direct and indirect effect of school testing culture on teacher satisfaction. Results suggest that there is a direct relationship between the intensity of the testing culture and the satisfaction of teachers, as well as an indirect relationship with test score emphasis in teacher appraisals suppressing potential positive effects of appraisals on teacher satisfaction.

Government accounting reforms in Sub-Saharan African countries and the selective ignorance of the epistemic community: A competing logics perspective

• Accrual accounting and IPSASs dominate government accounting reforms. • Competing logics overshadow good existing accounting and reporting practice. • Relational power of the epistemic community leads to the ignorance of local practice. • An application of existing accounting systems can strengthen accountability. The objective of this paper is two-fold. First, it assesses existing local accounting and financial reporting practices in Sub-Saharan Africa (SSA), focusing on the extent to which recent government financial statements published by ten selected countries adhere to mainstream qualitative features of public sector reporting. Second, it investigates the multiple institutional logics at play in the context of government accounting reforms (GARs) in SSA, involving international organisations, epistemic community members, policy makers and local actors. Data for the study are drawn from a content analysis and disclosure scoring of ten SSA government financial statements, supplemented by forty semi-structured interviews carried out in Nigeria and Tanzania. Our findings demonstrate how the generalised assumptive logics of international organisations, coupled with the market and professional logics of epistemic community members and state logics of local politicians, have led to the marginalisation of ‘good’ existing accounting and financial reporting practice in SSA (as reflected by the extent to which government financial statements adhere to mainstream features of public sector reporting) - while providing the countries with a strong impetus for undertaking a transition towards large-scale GARs involving accrual accounting and IPSASs. The role of the epistemic community in selectively ignoring the positive aspects of local accounting practice is a significant impediment. In this way, members of this epistemic community continue to execute their ‘relational power’ generated through professional knowledge, expertise and elite connections over the local actors, hence upholding the generalised assumptive logics. The paper argues that public accountability and transparency can be strengthened in SSA countries provided there is an ‘intelligent’ application of existing regulations and accounting systems, rather than seeking to merely replace them with externally imposed large-scale GARs.

Understanding Heterogeneous Effects of Performance Management: An Application of Kroll’s Contingency Approach to Educational Accountability

Abstract Performance Management (PM) systems are intended to inform managerial decision-making, driving performance improvements through managerial reforms. Despite the prevalence of these systems, they were implemented with little evidence of the assumed relationship between PM and organizational performance. Since 2010, a literature on this relationship has developed, but it is heterogeneous and inconclusive. This review develops a theoretical framework of heterogeneous PM effects adapted from Kroll (2015, Public Performance & Management Review, 39, 7–32) and assesses it for consistency with empirical evidence from three cases of educational accountability reforms. This framework assumes that effects of PM systems are driven by the effectiveness of an organization’s managerial response, which is determined by adopting one of three strategies: prospecting, reacting, or gaming. The cases demonstrate that organizational strategy, as inferred from managerial response, predicts performance under accountability. This raises questions about how to predict managerial response, suggesting that managerial autonomy plays an important role.

Discursive burdens: negotiating difference in an education movement

ABSTRACT Recent efforts to opt out of assessments have focused attention on the role that testing plays in accountability reforms in the United States. While opt-out activists often invoke the disproportionate impact of these reforms on communities of color, opting out has been more widespread in mostly White, affluent, and suburban communities. This study explores how resistance to testing is embedded in larger discourses of race, privilege, and opportunity in education. Through discourse analysis, we explore how activists located themselves within racial groups at a national conference in the United States. We show how (1) the mention of racialized identities was often accompanied by discursive markers that anticipated social discomfort and (2) activists of color named their racialized identities more so than White activists, and in ways that were strategic, suggesting activists of color did the harder work of weaving together a racially diverse movement.

Auditing profession given the accounting reform in Algeria

The purpose of this paper is to highlight the profession of the Auditing as one of the key professions for providing external auditing services in Algeria, in that, the study, in its theoretical aspect, has dependedon highlighting audit services provided by the external auditor, while the practical side focused onregulating and practicing the auditing profession through the laws that regulate it in the framework of theaccounting reform that Algeria has undertaken from 2004 to now.

The instrumentation of global education reforms: an analysis of school autonomy with accountability policies in Spanish education

ABSTRACT This paper analyses, from the perspective of the political sociology of policy instruments, the adoption and re-contextualisation of School Autonomy with Accountability (SAWA) reforms in Spain, with a particular focus on the region of Madrid. Over the last few decades, Madrid has adopted a wide range of education policies that have contributed to consolidate a market-oriented approach in the governance of the educational system. This paper analyses the instrumentation and complex interaction between standardised tests, test-based accountability, school choice and school autonomy in advancing this governance shift. The main objective of the paper is twofold: first, to trace the policy trajectory of SAWA reforms in Spain and Madrid, and second, to identify the rationale of the reform and its related policy ontology in relation to the selection and articulation of different policy instruments as well as the governance implications of these choices. Methodologically, we have conducted a policy analysis case study, analysing data from a set of 35 original interviews with education policymakers and key policy actors, combined with document analysis. The results of our research show how the policy preferences of domestic political actors and the legacies of the politico-administrative regimes mediate the final form and uses of the SAWA policy instruments. These policy instruments can be conceptualised as ‘life objects’ whose development and uses are attached to context specific – and sometimes contradictory – political objectives and rationales.

Multiple rationalities of participatory budgeting in indigenous communities: evidence from Indonesia

PurposeThis paper analyses participatory budgeting (PB) in two Indonesian indigenous communities, illustrating how the World Bank sponsored neo-liberal model of “technical rational” PB is overshadowed by local values and wisdom, consisting of sophisticated, pre-existing rationalities for public participation.Design/methodology/approachAdopting a qualitative and interpretive case study approach, the study draws on data from semi-structured interviews with key stakeholders and periods of participant observation. The paper utilises Weber's characterisations of rationality to analyse the PB process in indigenous communities.FindingsThe co-existence of both formal (technical) and substantive rationalities leads two Indonesian indigenous communities to execute participatory budgeting pragmatically. The formal budgetary mechanisms (Musrenbang), cascaded down from central and local governments, are melded with, and co-exist alongside, a tradition of public participation deriving from local cultural values and wisdom (Rembug warga). Reciprocal relationships and trust based on a pre-existing substantive rationality result in community members adapting budget practices while also preserving their local culture and resisting the encroachment of neo-liberal initiatives. The paper offers deeper analysis of the unintended consequences of attempting to implement technical rational accounting reforms and practices in indigenous settings.Originality/valueThe paper provides important insights into the way the interplay between formal and substantive rationality impacts on accounting and budgeting practices in indigenous communities. Our study also presents a unique case in emerging economy contexts in which neoliberal initiatives have been outmanoeuvred in the process of preserving indigenous values and wisdom. The informal participatory mechanism (Rembug warga) retained the community trust that neoliberalism systematically erodes.

Teacher accountability reforms and the supply and quality of new teachers

In recent years, states have sought to increase accountability for public school teachers by implementing a package of reforms centered on high-stakes evaluation systems. We examine the effect of these reforms on the supply and quality of new teachers. Leveraging variation across states and time, we find that accountability reforms reduced the number of newly licensed teacher candidates and increased the likelihood of unfilled teaching positions, particularly in hard-to-staff schools. Evidence also suggests that reforms increased the quality of newly hired teachers by reducing the likelihood new teachers attended unselective undergraduate institutions. Decreases in job security, satisfaction, and autonomy are likely mechanisms for these effects.

Governing the ‘Golden Age of Infrastructure’: Build, Build, Build Through an Accountability Perspective

Build, Build, Build (BBB) is the ambitious P8- to P9-trillion infrastructure development program of the current Duterte administration, pledged to usher in a “golden age of infrastructure.” This paper aims to independently assess critical governance dimensions of BBB, focusing on the performance of transparency and accountability reforms, as well as those combating corruption in infrastructural development processes. Beginning with an overview of corruption drivers and good governance reforms in infrastructure development, the paper appraises the transparency and accountability mechanisms that have been established by the current administration for BBB’s implementation. This includes investigating the effectiveness of information access procedures, through systematic exercise to request the feasibility studies of 48 flagship projects reported to have completed such studies as of mid-June 2018. All in all, access was granted to only 7 such studies, with an actual copy of the said studies only secured in a single instance. While a number of agencies have been standout performers in their responsiveness and efficacy in handling requests (i.e. the BCDA and the DOTr’s Air Transport Planning Division), most other infrastructure-related agencies have demonstrated lower responsiveness and e-FOI compliance, with more than half (29) of all requests not having been acted upon by their respective IA’s within the mandated 15-working day period. Coordination problems within and between agencies, confidentiality and trade secrecy concerns, as well as uneven and fragmented service delivery performance are underscored as major issues impeding information access to such critical public documents concerning BBB projects.

Earnings persistence and predictability within the emerging economy of Georgia

PurposeThe purpose of this paper is to provide the first empirical assessment of the persistence and predictability of earnings within the Georgian private sector entities.Design/methodology/approachThe sample comprises of all the Georgian private sector entities who, according to the new Law of Georgia on Accounting, Reporting and Auditing (2016), had to submit their audited financial statements by 1 October 2018. Financial data has been officially withdrawn from the Ministry of Finance of Georgia and the descriptive data has been obtained by the use of Link Klipper and ScrapeStorm tools through the official “Reportal” website. The final sample consists of 450 large Georgian private sector entities. The study uses a simple, one-year-lagged earnings auto-regression to detect the persistence and predictability within the next series of earnings. A weighted least square method has been used as a statistical procedure.FindingsThe results reveal that current earnings persist within the next year’s series of earnings at less than 25%, while the reliance on current year’s earnings enables us to predict the next year’s earnings only with a chance of 20%. Further analysis has witnessed that cash flows from operations persist at less than 40% and are able of predicting the next year’s cash flows at below 35%. Overall, the properties of earnings and cash flows within the private sector of Georgia are of relatively poor quality, with the latter demonstrating higher properties compared to earnings.Practical implicationsThe general finding on a relatively low property of earnings raises potential investors and creditors’ awareness on the valuation-usefulness of provided financial information within the private sector of Georgia. The fact that earnings are significantly less persistent and predictable compared to cash flows from operations, hints on accruals’ problematic functioning. The results presented in this paper should be of interest to a local regulator (SARAS), charged with the responsibility of successfully running a currently ongoing accounting reform of Georgia.Originality/valueThis is the first study that examines the persistence and predictability of earnings and cash flows from operations among the private sector entities of Georgia.

New development: Governmental accounting reforms in Latin America. The case of the municipality of Medellín, Colombia

ABSTRACT Government accounting reforms in Medellín (Colombia) were promoted with the adoption of New Public Management principles. The reforms began by introducing accrual accounting, using this financial information for decision-making and, finally, adopting international standardization and comparability. This article shows how and why the government of Medellín modernized its public financial management systems to achieve transparency, accountability and efficiency.

Factors affecting accrual accounting reform and transparency of performance in the public sector in Vietnam

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.

Police and Crime Commissioners: new agents of crime and justice policy transfer?

ABSTRACT This article argues that the police accountability and governance reforms introduced by the Conservative-Liberal Democrat Coalition Government (2010–2015) have created a new window for ‘international-subnational’ crime and justice policy transfer to occur in England and Wales by placing Police and Crime Commissioners (PCCs) into a local strategic leadership position. It begins by providing an account of the emergence of PCCs and the controversies that have surrounded them, while at the same time maintaining that they are unlikely to be abolished in the foreseeable future. Three reasons as to why PCCs may seek to import policies from abroad are then presented, encompassing ballot-box politicking, hyper-awareness of constituency discontent and a demonstrated willingness to pioneer new crime control initiatives. Subsequent to presenting an international-subnational policy transfer case study - that of London’s Compulsory Sobriety Pilot - several analytical and practice-based ‘lessons’ are outlined pertaining to the process of emulating non-indigenous subnational crime control innovations.

Learning accountability in the public sector: The experience of Kerala

AbstractGiven that learning has become a core element in addressing the ever‐increasing complexities in public sector accountability, we investigate two issues in this paper: (a) how learning was involved in the process of disseminating a competency framework (CF) in four state departments in Kerala, India; and (b) an analysis of the challenges involved in this process, using the theoretical insights from learning accountability. Although the CF would revitalise governance and accountability mechanisms by establishing a conducive environment for administrators to learn in, the nuances of the existing administrative structure limited the scope of this learning exercise. The CF in Kerala generated fear, tension, and resistance amongst the administrators, due to a perceived gap between the very objectives of the CF and the administrative settings, in which learning was insignificant. The paper argues that imposing public administrators’ accountability reforms, such as the CF, would be meaningless until an emphasis is placed on learning accountability. Furthermore, there is a need to “unlearn” or “discard” the prevailing traditional learning and accountability practices; unless this is achieved, a conducive environment for learning accountability cannot be institutionalised, nor can reforms such as the CF be materialised.

Проблемы в статистике внутрироссийской миграции, порожденные изменением методики учета в 2011 г.

Статистика долговременной внутренней миграции в 2011 г. претерпела серьезные изменения, связанные с включением в число мигрантов лиц, зарегистрированных не только по месту жительства, но и по месту пребывания на срок 9 месяцев и более. Эти изменения привели к резкому увеличению числа учтенных мигрантов, изменению структурных характеристик потоков. В результате изменения методики учета, сразу после окончания срока регистрации мигрант автоматически считается выбывшим в обратном направлении. В статье проанализированы последствия появления в статистике внутристрановой миграции новой категории – «возвратившиеся после временного отсутствия», выявлены связанные с этим проблемы оценки масштабов миграции, ее направлений, влияния миграции на численность населения отдельных территорий страны. Кроме того, показано, что текущая методика статистического учета искажает структурные характеристики миграции, наиболее сильно в молодых возрастах.

Financial controls to control corruption in an African country: Insider experts within an enabling environment

AbstractThis study analyses an implementation of a government accounting reform in Benin directed at redressing fraudulent and corrupt practices. Although reforms to improve public administration and to mitigate corruption in Africa often have disappointing outcomes, our case study involving systems for payment of supplier invoices, payroll matters, and debt certificates had encouraging findings. The systems reduced inefficiencies and corrupt practices. An “enabling environment” (its main elements being emancipatory space, empowered participation, and ethical leadership) encouraged the deeper involvement of committed, expert, and ethical local civil servants in establishing effective financial controls. In the context of anticorruption reforms, this illustrates that public sector organizations in Africa should not invariably be regarded as monolithic bureaucratic top‐down entities, staffed by civil servants who are either passive “bystanders,” purely self‐interested “players,” or insufficiently expert, and hence in need for more training, and of imported, expensive, accounting systems implemented by foreign consultants. In contrast, the paper argues that, within a suitable environment, granting indigenous experts enough latitude to enact incremental yet substantive accounting changes at the local level may be more effective.

Governing the “Golden Age of Infrastructure”: Assessing Transparency Innovations in Philippine Infrastructure Development

Amidst rising infrastructure investment across the Asia‐Pacific, glaring accountability deficits have raised questions about governments’ capacity to contain corruption in infrastructure development in the region. Recent developments in the Philippines, however, indicate the presence of challenges related to the ability of digitally enhanced transparency measures to bridge such accountability deficits. This article presents the shifting emphasis in transparency and accountability reforms related to Philippine infrastructure development beginning from the 1990s and assesses transparency innovations under the Duterte administration. While milestone measures such as the establishment of an electronic freedom of information (eFOI) platform have provided convenient access to public information, major hurdles remain in obtaining critical documents concerning infrastructure projects. As borne out in an exercise to request the feasibility studies of 48 flagship infrastructure projects, access to information is still obstructed by factors ranging from technical constraints, uneven service delivery, coordination failures, as well as active legal restrictions against the public’s right to know.

Issues on Public Sector Accounting Reform in Jordan

Issues on Public Sector Accounting Reform in Jordan

Lost in translation: Ireland and the Patten Report

Police accountability structures in the Republic of Ireland have recently undergone fundamental reform in response to international developments and domestic scandals. During the debates as to what shape new measures should take, numerous commentators called for implementation of the Patten Report. This article will evaluate the role which the Patten Report played in the reform debates. It will be argued that by interpreting that report as recommending a series of new mechanisms, rather than reflecting on the theoretical underpinnings, the value which it has for other jurisdictions has become lost in translation. By analysing the reforms which were introduced in Ireland from the theoretical framework in Patten, the deficiencies of the new system in the Republic will be highlighted. Through this case study, the potential value of the Patten Report for other jurisdictions, in providing a theoretically sound blueprint for accountability reform, will be elaborated.