Implementation Of Accrual Accounting Research Articles

The Effect of Implementation of Accrual Accounting in the Decision-Making Executives of Northwest University of Medical Sciences

In recent years, the frequency of attempts to implement accrual accounting in the public sector, some countries do have reporting systems in our country in recent years, efforts to use the accrual accounting system occurred throughout the University of Medical Sciences countries according to their bylaws and financial transactions that use this system have been approved. The main purpose of accounting and financial reporting systems in universities to provide information that could act as effective managers in corporate decision-making executives. The present study investigates the impact of the implementation of accrual accounting to meet the medical directors of the North West University (Ardabil, East Azerbaijan, West Azerbaijan, Zanjan, Hamedan, Kurdistan, Ilam, Kermanshah) is discussed. The sample consisted of 180 managers in 1392 is mentioned universities and research information using a questionnaire containing 27 items with a Cronbach's Alpha 943 /. Were collected for this purpose, initially characterized by descriptive statistics on the demographic questionnaire and the responses obtained are presented in the next step inferential statistical tests such as t-Student (hypothesisthe test statistic for), and the Variance analysis Friedman (for ranking hypotheses) was used. The results of testing research hypotheses suggest that the managers of Medical Sciences, University of the North West directors influence the implementation of accrual accounting in the decision variable.The results showed that the implementation of accrual accounting in management decision making speed of decision-making is most effective and timely receipt of minimum impact indicators shall be accepted.

Accrual Accounting Change: Malaysian Public Sector Readiness

The federal government decision to implement accrual-based accounting in Malaysia under the Government Transformation Programme (GTP) led to major changes in public finance management. To ensure the reforms achieve the target, the behaviour and mindset of employees must be ready. Therefore, this preliminary study will determine which attributes measure the readiness for change among public sector accounting personnel in Malaysia. This study also investigates any significant difference between demographic factors (position and length of service) and readiness for change. A survey was conducted of 119 public sector accounting personnel consisting of accountants, assistant accountant 1 and assistant accountant 2 in respect of their readiness to adopt accrual accounting in various ministries in Malaysia. The objectives of the study have been tested using descriptive analysis and ANOVA. The general findings show that the respondents have positive behaviour concerning readiness for change to accrual-based accounting. However, the results show that they are slightly disagree to take responsibility if the accounting change fails in their area. This study proves that the demographic factors of position and length of service are not related to readiness for change. These results are important for the government in order to strategize the effective guidelines for change interventions to ensure the successful implementation of accrual accounting in Malaysia.

The Implementation Of Accrual Accounting In The Malaysian Public Sector: Issues And Strategies From The Implementer Point Of View

Like any other reform, implementation of accrual accounting in the public sector will be challenging. To prepare for eventual adoption of accrual accounting, there must be change in management where the structured approach for organization change is supposed to take place. This paper examines the issues and strategies faced by the entity entrusted to be responsible to implement the accrual accounting in the public sector. To advocate the research issue, a qualitative method is utilized whereby data was collected through semi-structured interviews and document reviews. The findings showed that the main challenge faced by the implementer is to equip the employees with sufficient knowledge and skills in handling new sets of accounting systems and information. Besides that, issue in choosing the right accounting evaluation and recognition standards has slowed down the speed of the transition. The preliminary findings also revealed that software customization, systems familiarization and lack of equipment have hindered the migration process. To resolve these issues, the implementer has utilized several strategies. Training program, systems synchronization, standards harmonization, and engagement with other stakeholders are among the strategies taken in corresponding with the issues raised. Keywords: Public Sector Accounting, Accrual Accounting, Malaysia

Key Critical Factors Of The Users’ Awareness Towards Migration Of Accounting Practices

The aim of this research is to identify and propose the key critical factors of the users’ awareness towards accrual accounting. Other than that, the relationship between these key critical factors with users’ awareness is also highlighted. 240 questionnaires are distributed among three Accountant General’s Department (AGDs) within the Eastern Region of Malaysia. Identified key critical factors are categorized into five factors based on the result of Factor Analysis. Then, regression analysis is used to test the relationship. The result shows that the key critical factors consist of internal and external factors, which are top management (organisation), technologies and system,colleague opinion and self-efficacy for change as well as external issues. Other than that, the results of regression analysis reveal that only top management (organisation) and external issues have a significant positive relationship with users’ awareness towards the implementation of accrual accounting. The results could be the baseline to improve national capability and capacity in the implementation of accrual accounting and, consequently, support the Malaysian ETP towards greater accountability and holistic sustainability in the Malaysian economic system. Keywords: Accrual Accounting, Accountant General’s Department

Readiness of Malaysian Public Sector Employees in Moving towards Accrual Accounting for Improve Accountability: The Case of Ministry of Education (MOE)

In recent years, there has been increasing number of debates between adoptions of cash accounting versus accrual accounting in government accounting in the Malaysian public sector. This issue arises due to the government needs to determine either to stay on cash accounting or move to accrual accounting. The objective of the study is to determine the readiness of Malaysian public sector employees in the Ministry of Education (MOE) for the implementation of accrual accounting, major concerns together with challenges in moving towards accrual accounting. Finding from this study shows that accounting employees are ready for the implementation of accrual accounting and are willing to move to accrual accounting.

PENGARUH KOMPETENSI SUMBER DAYA MANUSIA TERHADAP PENERAPAN AKUNTANSI AKRUAL DENGAN PERANGKAT PENDUKUNG SEBAGAI VARIABEL MODERATING (STUDI EMPIRIS PADA PEMERINTAH KOTA YOGYAKARTA)

This study aims to empirically examine the effect of human resource competencies to the successful implementation of accrual accounting (PP 71 of 2010) with the support device as a moderating variable in the Local Government of Yogyakarta city. The population in this study was a head on education and KDP staff sectors in the local government area of the city of Yogyakarta is involved in the process of preparation of the financial statements. Sampling technique using simple random sampling and testing hypotheses using multiple regression analysis (multiple regression). The results of this study prove that the human resource competencies significantly influence the successful implementation of Accrual Accounting (PP 71 of 2010). However, the competence of human resources associated with the device does not support a significant effect on the successful implementation of Accrual Accounting (PP 71 of 2010). The result is expected, can assist policy makers in understanding the factors that support the successful implementation of accrual accounting rate (PP 71 In 2010, the Government Accounting Standards berbasis full acrual).

Brazilian Governmental Accounting Reforms: IPSAS and Accrual Accounting Adoption

Brazilian governmental accounting is affected by two reform processes: the implementation of accrual accounting and convergence with the International Public Sector Accounting Standards (IPSAS). This paper analyses the origins, the process and preliminary outcomes of such reforms. In order to characterize the Brazilian accounting system, we followed the questionnaire from Chan, Jones and Luder (1996) as a protocol, analysed financial reports and reviewed official literature that regulates Brazilian public sector accounting. The paper finds that the accounting reform has two origins: the need to prepare cost accounting information (year 2000) and the requirement to converge towards IPSAS (year 2009). Reform affects both central government and subnational governments, and is being coordinated by the Treasury’s central government. In the process, the Treasury has required the adoption of some sophisticated accounting policies that were beyond the capacity of IT platform installed on either central and local governments, and has had to postpone aspects of their implementation. Treasury has used this as a convenient opportunity to select which IPSAS requirements to implement, taking into account political agendas (e.g. avoiding the recognition of deficit). For these and other reasons, some states’ courts of accounts do not require compliance with some of the standards issued by the Treasury, which impairs the comparability of accounting information prepared by different Brazilian public sector entities.

Accrual Accounting: Change And Managing Change

The Malaysian government has decided to adopt accrual accounting to enhance financial accountability and to have a better asset-liability management. Based on experiences of other countries such as Australia and New Zealand, the change process has to be properly man- aged to ensure successful implementation of the new accounting system. Employees’ com- mitment to change has been identified as a critical factor in organisational change. Commit- ment to change model as proposed by Herscovitch and Meyer consists of three components: affective (want to change), normative (ought to change) and continuance (have to change). Hence it is very important for public sector organisations to identify and manage organisa- tional and individual factors influencing commitment to change. The literature has identified factors including organisational support (ICT and human resource), top management support or leadership, communication channel and flow, attitude towards change, employee participa- tion or involvement, are pivotal to successful implementation of accrual accounting. Thus, a study will be conducted to investigate whether the Malaysian government is ready to embrace the change or otherwise.

Difficulties of Accrual Accounting Implementation in Indonesian Government: A Comparative Study

Difficulties of Accrual Accounting Implementation in Indonesian Government: a Comparative Study . The research aims to compare the condition in Indonesia and other country that apply accrual accounting. The research method employed is qualitative descriptive. Data collected by the literary study, and interview. The research was conducted from November 2008 until January 2009. Analysis methods used were qualitative for data that was collected using literary study as well as content analysis for data that was collected using interview. The conclusions of this research are: the Human Resources Competencies, Public Finance Practice, and Regulation are factors that determined diffi culties in the implementation of accrual accounting in Indonesia and also in other country which implement the accrual accounting Abstrak: Kesulitan Implementasi Akuntansi Akrual di Pemerintahan Indonesia: Suatu Studi Komparatif. Riset ini bertujuan mengkomparasi kondisi di Indonesia dan negara lain yang mengaplikasikan akuntansi akrual. Metode riset yang digunakan adalah deskriptif kualitatif. Data dikoleksi melalui studi literatur dan wawancara. Riset dilakukan sejak November 2008 hingga Januari 2009. Metode analisis yang digunakan adalah dengan pendekatan kualitatif untuk data yang dikoleksi melalui studi literatur dan metode analisis konten untuk data yang dikoleksi dengan wawancara. Simpulan riset ini menunjukkan bahwa kompetensi sumber daya manusiam praktik keuangan publik dan peraturan merpakan factor yang menentukan kesulitan implementasi akuntansi akrual di Indonesia dan di negara yang lain yag juga mengaplikasikan akuntansi akrual.

The rise and fall of accruals: a case of Nepalese central government

PurposeThe purpose of this paper is to trace the rise and fall of accruals in the Nepalese central government, contributing to the literature on accrual accounting by looking at the developments in developing countries.Design/methodology/approachThe ideas of institutional theory have provided a theoretical setting through which to trace the country's journey toward the accrual basis of accounting. Document search and informal interviews represent the major methods of collecting data for this paper.FindingsThe paper demonstrates that Nepal has been acquainted with the notion of accrual accounting since the late 1980s. The interest of international organizations and the involvement of professional accountants have been the two main factors driving this accrual accounting journey. The study also shows that the implementation of accrual accounting in the Nepalese central government has been an unsuccessful mission. This is why the notion of accrual accounting has been replaced by the improved version of cash accounting anchored on the cash basis International Public Sector Accounting Standard (IPSAS).Research limitations/implicationsIt is beyond the scope of this paper to generalize that the trend toward accrual accounting has also reversed in other developing countries.Originality/valueThe paper contributes to the literature dealing with the role and influence of international organizations in facilitating public sector accounting reforms in developing countries. Moreover, the study argues that there has been a change in the attitude of international organizations toward exerting pressures on developing countries to carry out accrual accounting reforms. This changing attitude of international organizations has led many developing nations to focus more on improvements in their existing accounting standards and procedures.

Cash To Accrual Accounting: One Nations Dilemma

Over the past three decades, there has been a slow but steady global movement undertaken by most governments to move from cash-based accounting to accrual-based accounting. This migration is the result of calls for greater accountability, increased transparency and more informed decision-making from the public sector. Questions remain regarding the implementation of accrual accounting within public sector organisations. This paper reports on an investigation into Fiji's attempt to use accrual accounting as its financial reporting format. Findings suggest that, due to the nation’s low-skilled public service, high labor turnover and insufficient investment in capital equipment, undertaking the move to accrual accounting for this and similar developing nations require a different approach to that used by developing economies. This paper concludes with recommendations on how to effectively introduce accrual accounting in the public sector of developing nations.

On the Implementation of Accrual Accounting: A Study of Conflict and Ambiguity

There has been a major debate on the merits of accrual accounting in the public sector in general. This paper is an implementation study of accrual accounting in local government. It examines this issue from an implementation perspective. The implementation perspective adopted draws on Matland's ambiguity–conflict model (1995). This research is informed by a combined methods approach: the analysis of public documents and debates; a survey of local authority capital accountants and case study information on management's perceptions of this accounting information. This research reveals a complex outcome of reformers' initiatives which has resulted in these accounting changes being retained within the accounting domain and having limited impact on wider potential users of this information.

Accrual Accounting in EU Local Governments: One Method, Several Approaches

This paper seeks to measure the degree of accrual implementation in EU local government accounting systems and also tries to give an answer to the question of why accrual accounting has overcome the resistance to other New Public Management (NPM) reforms in countries relatively suspicious of them. We carry out our analysis through the comparison of the accrual accounting legal requirements in force in each country, and the published financial statements, taking the IPSASs of the IFAC as a benchmark. The results show different degrees of accrual accounting implementation and legal compliance. The reason of accrual accounting dissemination lies partially in that the dual systems implemented in European Continental countries do not require the introduction of deep organizational changes and answer the democratic demands of citizens for higher responsiveness, transparency and accountability, while traditional budgetary statements are maintained for monitoring compliance with legality and for administrative decision-making purposes.

New development: Consolidated financial reporting as a stimulus for change in Italian local government

This article analyses the potential effect of consolidated financial reporting (CFR) on the accounting and reporting systems in Italian local government. As consequence of the increased use of decentralized entities in delivering a variety of public services, Italian local government needs to improve internal and external accountability. Although a number of obstacles (technical, legal and cultural) have been encountered in Italy, initial experience in Tuscany has demonstrated that CFR has benefits for internal and external users. CFR, in addition, is a potential stimulus for the full implementation of accrual accounting and reporting.

Reforming Financial Accounts in the Public Sector: The Case of Universities

The introduction of accrual accounting in the public sector has been one of the main business-like devices of New Public Management. Governments and researchers have been extremely interested in the merits of accrual accounting since it was first introduced. However, the debate on this reform is still onging. This paper is set in this context, and it explores the case of four Italian universities which have voluntarily adopted an accrual system in a context of legislative autonomy for financial accounting practices. The paper’s aim is to study the process of adoption of accrual accounting, specifically investigating two elements: (1) what forces led these universities to adopt accrual accounting, and (2) what accounting framework has been used for their financial statements. In order to interpret the empirical evidence the study has made use of institutional theory and, in particular, more recent developments. The results reveal a complex picture in which three forces differently influence the adoption and implementation of accrual accounting: the individual action of ‘champions’ of accrual accounting, a favourable organisational context and the isomorphism of private organisations.

ASSESSING IT AS A KEY SUCCESS FACTOR FOR ACCRUAL ACCOUNTING IMPLEMENTATION IN GREEK MUNICIPALITIES

Inadequacy of Information Technology (IT) enabled solutions has constrained the implementation of accrual accounting in Greek municipalities as part of a New Public Management (NPM) initiative. In this paper we analyse the main reasons behind the failure of IT to support the accounting reform and describe how the problems of software solutions were overcome with the assistance of an IS/IT assessment model, based on the general systems theory principles. We present an IS/IT evaluation approach, which adopts a systems perspective in order to provide evaluation criteria for both functional and behavioural aspects of the IT solutions adopted to support the new accounting practices. The described approach provides empirical evidence related to the effectiveness of systems oriented thinking in devising evaluation frameworks for assessing IS/IT solutions employed to support contemporary accounting practices in Public Sector organizations. The reported work contributes to the literature (i) an IT assessment case study in Greek public sector, (ii) a novel evaluation framework suitable for both functional and behavioural aspects of financial management information systems and finally (iii) comprehensive experience from its application in Greek municipalities.

Accrual Budgeting: Accounting Treatment of Key Public Sector Items and Implications for Fiscal Policy

Budgeting in accrual terms is one of the most controversial issues in public sector accounting. In this paper, we analyze the accounting treatment of problematic elements of the financial statements when introducing accrual budgeting, and discuss the effects of the analyzed accounting alternatives on fiscal policy. We focus on three pioneer countries in the implementation of accrual budgeting and accounting: the United Kingdom, Sweden, and New Zealand. The accounting standards of the International Public Sector Accounting Standards Board, the European System of Accounts, and the Government Finance Statistics Manual of the International Monetary Fund are taken as benchmarks.

Perceptions Of Government Employees About The Introduction Of Accrual-Based Accounting Into The Jordanian Public Sector

The purpose of this study is to examine the implementation of accrual-based accounting into the Jordanian public sector. The focus of interest is to test a number of hypotheses about the perceptions of government employees toward the implementation of accrual-based accounting in the Jordanian public sector. The views of accountants and finance officers working in the health and education departments, which have been attempting to employ accrual-based accounting since the introduction of Program and Performance Budgeting (PPB) in 1996, are compared with those of accountants and finance officers working at departments which do not, for the purpose of determining whether there are any significant differences in the perceptions of the two groups regarding the feasibility of adopting accrual-based accounting into the Jordanian public sector. A survey questionnaire was distributed to a representative sample of 611 government accountants and finance officers who work within different Jordanian public sector departments. The findings have revealed a support in principle for the introduction of accrual-based accounting. However, technical difficulties (i.e. assets valuation) were associated with its implementation, which may have prevented the government from achieving the intended outcomes of the reform. Different opinions have emerged between the users and non-users sample groups as to the implementation of accrual-based accounting into the Jordanian public sector. Regardless of the preference amongst the majority of respondents from both groups for using accrual-based accounting, the debate seems to continue over the implementation of accrual accounting into public sector.

The ‘third hand’: Private sector consultants in public sector accounting change

This paper explores the role of large private sector consulting firms in the promotion and implementation of public sector accrual accounting. By focusing on an early adopter of accrual accounting for its entire public sector, this research presents an analysis of the activities of large consulting firms in the process of a significant public sector accounting change. The role of consultants in the change is presented by analysing primary data extracted from archival sources and oral histories provided by a number of prominent actors classified as users of information (politicians), producers of information (bureaucrats) or accounting consultants. The role and impact of the consulting firms' actions can be better understood by applying concepts of non-coercive isomorphism and the interplay between self-interest and perceived public interest. The consulting firms are shown to have used phantom images to promote the case for accounting change. This was done with a zealous belief that bringing public sector accounting into line with private sector accounting was an inherently righteous objective.

Preconditions for Successful Implementation of Accrual Accounting in Central Government

A number of national governments, including the UK, have successfully implemented a change to accrual accounting. But the change should not be regarded as an end in itself: it will not solve the problems that arise where inadequate cash accounting systems exist; it will not improve control or management where inadequate control and poor management exist; nor will it improve external audit or the legislature's control over the executive. Before this reform is introduced, cash accounting should be robust, control should be secure, external audit should be functioning well and the legislature should have an ability to call the executive to account. This article sets out preconditions that governments need to meet to ensure that the full benefits of accrual accounting are achieved.