Changes In Accounting Systems Research Articles

Intelligibility of communication with stakeholders after accounting system change: an exploratory data analysis of Italian universities

PurposeThis study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and the readability of text that occurred immediately after the adoption of accrual accounting in performance reports of Italian public universities.Design/methodology/approachThe authors collect the stakeholder section of performance reports published before and after accrual accounting adoption. Then, the authors use manual and computer-assisted textual analysis. Finally, the authors explore the data using principal component analysis and qualitative comparative analysis.FindingsThis study demonstrates that switching from cash to accrual accounting provokes immediate changes in communication patterns. It confirms the significant reduction of readability and increase in visual forms after accruals accounting adoption. The results indicate that smaller universities especially put effort into increasing intelligibility while implementing a more complex accounting system. This study also finds a relation between the change in readability and the change in visual forms that are complementary, with the exception of several very large universities.Practical implicationsThe findings underline the possibility of neutralising the adverse effects of accounting reform associated with its complexity and difficulties in understanding by the use of visual forms and attention to the document’s readability.Originality/valueThis paper adds a new dimension to the study of public sector accounting from the external stakeholder perspective. It provides further insight into the link between accrual accounting adoption and readability, together with the use of visual forms by universities.

Institutional perspective of change in management accounting system: A case study approach

The objective of this study is to examine the drivers of change in the management accounting system in a large manufacturing Libyan-Italian joint-venture public company (LIJV). To achieve this objective, a qualitative case study research is adopted. The research data were gathered by conducting 17 semi-structured interviews with the managers and senior staff of the case company. The data collected from the interviews were supported by documentary reviews and observations. The findings of this study indicate that changes in management accounting systems in the company are attributable to institutional factors, competitive pressures, and market forces. Specifically, isomorphic institutional pressures (i.e., coercive, mimetic, and normative isomorphism forces) appeared to be the main drivers of management accounting system change. These findings are consistent with Zoubi’s (2011) findings. Additionally, our findings reveal that the primary sources of the barriers to management accounting change include: 1) the nation’s regulations and laws, 2) management misconduct and corruption in management and financial activities, and 3) company managers’ resistance. Drawing on the new institutional sociology (NIS) theory, our case findings provide a comprehensive understanding of the change process in management accounting systems by focusing on the role of market pressures, institutional pressures, and intra-organizational power. The contribution of this research is the improved utilization of NIS in explaining the change in management accounting.

The Impediments to Cost Accounting System Change

The Impediments to Cost Accounting System Change

PENGARUH PENDELEGASIAN WEWENANG TERHADAP KINERJA ORGANISASI

The purpose of this study is to determine the Effect of Delegation of Authority on Or- ganizational Performance with Change of Management Accounting System as Intervening Vari- able. This research was conducted at the Manufacturing Company located in Serang District. As the object of his research, the middle manager with 125 questionnaires spread, but the question- naire that can be processed as much as 72 questionnaires (58%). The questions questionnaire measured with a scale of 1-5. Data were analyzed by using SEM (Structural Equation Model) through SmartPLS (Partial Least Square) 2.0 versions. The results of this study indicate (1) Delegation of authority has a positive effect on Management Accounting System Changes, (2) Changes in Management Accounting System has a positive effect on Organizational Performance, and (3) Delegation of Authority positively af- fects organizational performance.

PENGARUH INTENSITAS PERSAINGAN, DELEGASI, STRATEGI DAN PERUBAHAN SISTEM AKUNTANSI MANAJEMEN TERHADAP KINERJA ORGANISASI

This study examined the correlation between competition intensity, delegation, strategy, management accounting system changes, and organizational performance. This study took a manufacturing company located in Banten Province as the object of research. The number of samples in this study were 72 respondents. Data were analyzed by using SEM (Structural Equation Model) through the program SmartPLS (Partial Least Square) version 1.0. The results of this study states the intensity of competition has positive influence on the delegation of authority. The intensity of competition has positive influence on changes in management accounting system. The intensity of competition has positive influence on organizational performance. Delegation of authority has positive influence on changes in management accounting system. Delegation of authority has positive influence on organizational performance. Changes in accounting management system has positive effects on organizational performance. The intensity of competition has positive influence on strategy. Strategy has positive influence on organizational performance. Manufacturing companies are expected to be used as a tool for evaluation and improvement of performance. Further research is expected to add external factors variable (information technology, organizational culture, etc.) and add to more respondents. Researchers are also expected to develop further research of various other business entities, such as the banking, hotel, service, commercial or state enterprise. Scope of the research is the sampling object.

Change of Management Accounting Practices

Currently, the use of traditional management accounting techniques such as traditional product costing is not meeting user needs for a variety of reasons. It has been claimed that traditional management accounting techniques are unable to satisfy the users of such techniques in terms of providing them with timely and detailed information. The use of management accounting techniques to support business processes, enabling competitive advantage and creating value is highly relevant for most businesses today. It also encourages the provision of capabilities to reduce cost and improve product quality, process flexibility, and build relationships supplier-customer and ultimately improve performance. The research has been done by investigating the contribution of the ease of use and usefulness to accept a change in the hospital management accounting system. All the hospitals (37 hospitals) in Jakarta constituted our population. A sample for this research used 23 management accounting system changes. Our research shows that hospital management accounting system changes are acceptable. The disagreement is related with the functional issues required to support the new system. Previous researchers argue that the delegation of decision rights (decentralization) can reduce the potential for resistance of management accounting innovation implemented in two ways: (a) by creating the environment which allows managers to ensure that their subunits are able to adapt to the new signals provided by accounting innovations and (b) by enabling subunit managers to become involved in the design of these systems.

The Institutionalization of Accrual Accounting: The Perspective of New Institutional Sociology Theory

This study aims to understand an accounting system change of a local government in Indonesia. This study is a qualitative and interpretive case study. Data collection is done through interviews of key actors who were involved in the process of accrual accounting institutionalization and documentation.The result of this study shows that the institutional isomorphism occurs on the implementation of accrual accounting at the local government. Coercive isomorphism are shown by the finding that the adoption of accrual accounting was affected by the central government, namely by issuing the regulations such as Government Regulation no. 71 of 2010 and Regulation of the Minister of Home Affairs no.64 of 2013. Normative isomorphism was found on the findings of consultant and academic involvement in the implementation of accrual accounting. Mimetic isomorphism was found when the local government conducted benchmarking to the other local governments that became the best practice in the accrual accounting implementation in Indonesia. In reality these three forms of institutional mechanism were interact each other, then contribute in influencing the practices and the actors during the accrual accounting institutionalization process in the local government.

Hospital acquisitions, parenting styles and management accounting change: An institutional perspective.

Many healthcare scholars have applied institutional theories to the study of management accounting systems (MAS) change. However, little attention has been devoted to MAS change within groups. Kostova etal. highlight the limitations of traditional institutional frameworks in studying groups since they are characterised not only by the existence of external institutional environments but also by intra-organisational (meso-level) ones. Given this background, the research question is: how does the meso-level institutional environment affect MAS change in healthcare groups? We use a longitudinal multiple-case study design to understand the role of headquarters in shaping local MAS change. We would expect companies to adopt similar MAS. However, we argue that the relationship between external institutions and MAS change cannot be wholly understood without taking into consideration the role of headquarters. Our analysis shows how hospitals facing the same external institutional environment implement different MAS as a consequence of different parenting styles. From a scientific perspective, our article contributes to broaden traditional institutional theoretical frameworks.

INSTITUTIONALISASI POLA PENGELOLAAN KEUANGAN BADAN LAYANAN UMUM DAERAH (BLUD): Studi Fenomenologi Pada Puskesmas Di Kabupaten Sleman

Public Health Centers (PHC) in Sleman implement a mechanism of Financial Management Regional PublicService Board (PPK-BLUD) to acquire flexibility in financial management. This decision had an impact onchanges in the budget system of the traditional budget into performance-based budgeting and accountingsystem changes from a cash-based accounting into accrual-based accounting. By using the theoreticalframework of the new institutionalism, this research seeks to understand the process of institutionalization ofbudgetary and accounting system for the implementing BLUD in PHC.This study is a phenomenological study were included in the interpretive paradigm because more emphasis on aperson's meaning or interpretation of the phenomenon of change in the budget and accounting system.PHC's efforts in implementing the budget and accounting systems can be attributed to the institutionalisomorphism. Symptoms of normative isomorphism, coercive isomorphism, and decoupling in the process ofchange. Changes to the system have not been fully institutionalized in the understanding of the actors executingBLUD. To assist the process of change, requires the professional to provide guidance and consultation so thatchanges implemented in accordance with the ultimate goal of improving quality of service to the community.

Public Financial Management Reforms: The Role of Ipsas in Latin‐America

SummaryDuring the last 30 years, many public administration reforms promoted by New Public Management have been undertaken. These reforms have spread to Latin‐American countries and include changes in governmental accounting systems, where the implementation of International Public Sector Accounting Standards (IPSASs) has been a stimulus for modernization. This article aims to clarify the situation of IPSASs implementation in the Latin‐American context as well as the stimuli for and effects of their implementation. The analysis shows that there is an emerging international trend to adopt IPSASs in Latin‐American countries although at the same time, there are evident obstacles to achieving reform goals. In Colombia, reforms are still underway, and the usefulness of IPSASs to improve decision‐making at an organisational level cannot be evaluated. Meanwhile, in Peru, the modernization is more rhetorical than real, and many efforts remain to be made for the effective implementation. Copyright © 2016 John Wiley & Sons, Ltd.

The Relationship of Competition, Delegation of Authority and Changes in Management Accounting Systems with Corporate Performance based on Path Analysis Model

Present study aimed to analysis whether delegation of authority and changes in control and management accounting systems, adjusts or increases the relationship between competition and corporate performance. Study Population is companies listed in Tehran Stock Exchange and needed data is gathered from questionnaire and financial statements. Excel software used to category information and for testing hypothesis statically software was used. Results show that there is a positive and meaningful relationship between competition power and management delegation of authority, change in control systems and management accounting system and corporate performance and changes in control and management accounting systems. Results also show that there is relationship between delegation of authority with variables like control and management accounting systems changes and corporate performance. Other results explain that there is meaningful relationship between changes in control and management accounting systems with corporate performance of management.

Effect of Accounting Goals and Methods of Measurement Accounting Firms after Privatization of Jordan on the Financial Statements

The study aimed to highlight the objectives of the privatization process of accounting and the extent of the application of Jordanian firms after privatization of those goals and also aimed to identify the application of the accounting methods of measuring the financial statements of companies. Study questionnaire was also used as a key tool to get the information, was the use of the arithmetic mean and standard deviation as methods of statistical. Study find the following results: The Jordanian firms after privatization disclose all financial statements in the financial statements process is applied and this means that it applies the principles of financial accounting accepted ,and the information that explains the economic situation, and the project's financial feasibility and economic problems disclosed in financial statements. Most recommendation: changes in accounting and financial systems, and the quality of the available financial information, required after privatization, making divestitures decision such as the type of privatization method to use and its timing.

A framework for assessing cost management system changes: the case of activity-based costing implementation at food industry

Article history: Received October 28, 2014 Received in revised format 15 January 2015 Accepted 28 January 2015 Available online January 31 2015 An opportunity to investigate the technical and organizational effect of management accounting system changes has appeared with companies' adoption of activity-based costing (ABC). This paper presents an empirical investigation to study the effects of ABC system for case study from food industry in Iran. From this case, the paper develops a framework for assessing ABC implementation and hypotheses about factors that influence implementation. The study detects five cost centers and for each cost center, it determines different cost drivers. The results of our survey has detected that implementation of ABC system not only helps precise allocation of overhead costs but also helps internal management companies for better planning and control of production, making better decisions for company's profits. Growing Science Ltd. All rights reserved. 5 © 201

The Empirical Research about the Impact on the Accounting System Changes to Earning Quality - Taking Manufacturing of a-Shares as an Example

In order to investigate whether changes in the accounting system of mandatory significantly improve the quality of accounting earnings of listed companies, this paper uses empirical research methods and takes A-shares listed companies in Shanghai and Shenzhen manufacturing industry in the year of 2004-2009 as samples to analyze. The results show that with the constant reform and improvement of Chinese accounting system, the earnings quality of a share shows a significant upward trend on the whole, which demonstrates the changes in the accounting system can promote the earning quality to some extent. At the same time the research discover also shows that simple changes in accounting standards does not improve the quality of accounting information, unless it is accompanied by supporting the strong legal and enforcement mechanisms.

Thai public universities: modernisation of accounting practices

PurposeThe purpose of this paper is to investigate the transition of the accounting systems from cash based to accrual based, in Thai public universities. The focus is on the factors both influencing and affecting the accounting change.Design/methodology/approachThis study takes a quantitative approach with data collected through a mail survey to the Chief Financial Officer of each of the 78 Thai public universities. Statistical analysis included both descriptive analysis and ANOVA to analyse differences between universities.FindingsThe main catalysts for change have come from both external and internal sources. The Thai government requires public agencies to adapt their accounting practices in line with New Public Management (NPM) and university management need improved information for planning and control purposes. The most important change has been to the financial accounting system with the adoption of computerised accrual accounting practices. The major factor influencing the change process is low institutional capacity of some Thai universities which is evidenced by the lack of technological resources and staff with knowledge of private sector accounting practices. Universities that either have or intend to become autonomous have given more importance to accounting system changes; and universities that have achieved more success in the change process note the importance of external consultants, and staff having an understanding and knowledge of data requirements.Practical implicationsThis paper adds to the literature on accounting change in the public sector in less developed countries by highlighting factors influencing accounting change and factors that can be barriers to and facilitators of change. The findings provide further evidence of the issues confronted by public agencies in developing countries adopting new accounting practices and highlights the importance of training of local staff before the change process commences. Training is critical for knowledge transfer to enable staff to gain the knowledge and skills needed to assist in the change of accounting practices.Originality/valueThis paper presents a contribution to the government accounting change literature by highlighting public sector agencies in a developing country, Thailand. In both developed and developing countries, public universities are now operating in an environment of decreased government funding coupled with university management taking more responsibility for financial management. This study provides an insight into the changes taking place in Thai public universities in relation to the accounting system to support this new operating environment.

Management accounting system (MAS) change: field evidence

This paper critically discusses one of the prescriptions of traditional control literature according to which the management accounting system (MAS) should be adaptive to changes in the organizational and strategic context. Drawing from contingency and institutional theories, the paper drafts a framework to pragmatically identify key phases and features of the management accounting change process to highlight its organizational nature. Using this framework, the paper documents four longitudinal case studies of the design and the implementation of management accounting changes. The field studies show how accounting systems are difficult to change despite the formally acknowledged need for change. Findings highlight that the need for change, the technical feasibility of change, the availability of traditional, and the contemporary methodologies are – alone – insufficient reasons to change. A number of other elements interplay in the process of change, namely, the intended MAS use, the stage of the organization life cycle, the potential impact of change on the organization, and the role of key individuals in linking the phases of the change process.

A review of “Management accounting system (MAS) change: field evidence” by Zoni, Dossi and Morelli

This paper addresses an interesting and topical issue in the management accounting literature, the role, effectiveness and behavioural performance of various management accounting system (MAS) desi...

Uncovering Governance And Mindfulness Patterns For Improved Performance: The Role Of Management Accounting Systems Change

This study extends the model developed in Williams and Seamans [Williams, J. J. and Seaman, A. E. (2010). Corporate Governance and Mindfulness: The Impact of Management Accounting Systems Change, The Journal of Applied Business Research, Vol. 26, No. 5, pp. 1-17] exploratory paper examining the moderating effects of management accounting systems (MAS) change on the corporate governance/mindfulness relationship for a Canadian sample of 124 top-level accounting professionals. Canonical correlation analysis was applied to the linkage of multiple cognitive processes of mindfulness (Weick and Sutcliffe, 2001; 2007) and the governance dimensions of performance and conformance specified by the International Federation of Accountants (2009), underpinned by the moderating effects of five different components of MAS change, which yielded 13 significant relationships. The latter were subsequently analyzed for important gestalts (i.e., patterns) in the overall relationship, and assessed within the context of aligning professional accounting practices involving systems changes to the IFAC (2009) governance framework. These findings appear to have implications for improved governance structures in practice as well as offering a rich foundation for future research.

Reforms and accounting system changes

PurposeThe purpose of this paper is to provide insights into the process of the accounting system change as a part of a larger reform initiative taking place in Norway. The research context is the national network of hospital enterprises.Design/methodology/approachThe paper uses an archival‐based case approach of official documents (between 2000 and 2009) to study the formal layers of accounting practices.FindingsThe accrual accounting information signalled major management control problems, but the hospital owner, the state, did not take action to solve these problems during this period. The contracts between the state and hospital enterprises were characterised as principal‐agent relationships. However, different accounting techniques were mixed in the contracts between the parties, indicating hybridisation of accounting systems.Research limitations/implicationsThe authors did not study the perceptions and practices of key actors and this is a limitation of the study.Practical implicationsThe findings are likely to be useful for practitioners and researchers to gain knowledge on the implementation of management reforms in public sector service organisations.Originality/valueThis paper contributes to our understanding of the diverse processes within which public sector reforms are taking place. The main contribution is a discussion of the diversity in accounting system changes.

The relations among competition, delegation, management accounting systems change and performance: A path model

This paper is concerned with an empirical investigation into the relations among competition, delegation, management accounting and control systems (MACS) change and organizational performance. It follows a standard contingency type path modeling to propose that intensity of competition causes firms to change their MACS and that this change enhances their performance. Delegation of authority is implicated in the model as competition encourages delegation, and this in turn causes the change in MACS, as well as enhancing performance directly. The results from a sample of Australian strategic business units indicate that (1) increased competition results in improved organizational performance indirectly through a greater number of changes in MACS, and (2) increased delegation of authority to lower level management leads to higher organizational performance. These results contribute to the management accounting change literature by providing empirical evidence that the relationship between competition and organizational performance is mediated by a decentralized organizational form and changes in MACS of the firm.