Accrual-based Accounting System Research Articles

New development: Whole state accounting—Experiences of the state of Hesse

IMPACT The state of Hesse began voluntarily converting its cash and budget system to an accrual-based accounting system in 1998. A particular challenge in the conversion of the accounting system is involving all departments and employees in this reform process, as the transition from cash accounting to accrual accounting requires a fundamental change to existing administrative processes. The continuous political support of the state government over several legislative periods was of particular importance. The path that Hesse has taken in converting its accounting system from 1998 to the current adoption of the new financial regulations in 2022 has been highly successful. The state now has a sensible combination of the strengths of accrual-based and cash-based accounting with performance-oriented management. The accrual accounting system increases the transparency of the budget and provides significant additional information for politicians, managers and citizens. The cash-based budget remains an important management tool for budget preparation and the debt brake.

The Path toward Accrual Accounting in the Public Sector from the Perspective of Italian Municipalities

The goal for the coming years set by the European Union to harmonize public sector accounting is to implement a single accrual-based accounting system for all public administrations. Italy is moving towards full adoption of this accounting system for all local authorities by 2026 and can be seen as an example of a country in transition from a modified cash accounting system to a full accrual accounting one. This research makes use of semi-structured interviews with key actors in the accounting departments of municipalities in Emilia-Romagna, one of the most economically developed regions in Italy, to assess whether the current public accounting system is ready to move to full accrual accounting and whether the transition would be considered beneficial for Italian municipalities. The results show that municipalities are still far from the full implementation of accrual accounting, both in terms of the maturity of the system and the usefulness of the information. The research contributes to understanding the level of accountingmaturity in the public sector and helps to identify the main critical issues for the full adoption of accrual accounting, finding new paths to be followed to make its implementation effective. At the international level, this work may be useful for all countries that are changing their accounting systems to understand what measures need to be taken to facilitate the transition to full accrual accounting in the public sector.

THE IMPACT OF REGULATORY MEASURES AND INTERNAL OVERSIGHT ON THE PERFORMANCE OF REGIONAL FINANCIAL MANAGEMENT INFORMATION SYSTEMS VIA SAP ACCRUAL BASE IMPLEMENTATION

ABSTRACT
 This research aims to examine and elucidate the influence of regulations and internal controls on the efficacy of the regional financial management information system (SIPKD), mediated through the introduction of an accrual-based accounting system. Employing quantitative research methods, a questionnaire was utilized to gather data from 80 respondents in private capacities, including heads of OPDs, Budget User Authorities (KPAs), Budget Technical Implementing Officers (PPTKs), and Expenditure Treasurers across 20 Provincial Government Organizations (OPDs) in Jambi, Indonesia. The collected data underwent analysis using Wrap-PLS 7. The results demonstrated that the implementation of SAP accruals acted as a complete mediator, as direct regulatory measures and internal controls did not significantly impact the SIPKD's performance. However, when mediated through these two external variables, there was a significant positive effect on the SIPKD's performance. These findings imply the necessity of updating local governmental regulations and enhancing internal oversight to align with the SAP accruals policy, thereby achieving performance benchmarks for regional financial management information systems.

Properties of accrual accounts in public sector entities: evidence from the Italian National Health Service

PurposeThis paper aims to contribute to the debate over the desirability of introducing an accrual-based accounting system in the public sector by examining whether accrual-based accounting information is superior to cash-based information in the context of public sector entities.Design/methodology/approachThis paper applies a quantitative research method to assess the degree of smoothness and relevance of the accrual components of income recorded by 302 entities of the Italian National Health Service (INHS) over the period 2014–2020.FindingsThe analysis reveals that net income is smoother than cash flows as a summary measure of economic results and that accounting for accruals improves the predictability of future cash flows. However, the authors' novel disaggregation of accrual accounts reveals that those accounts that contribute the most to making income smoother than cash flows – noncurrent assets and liabilities – are also those that contribute the least to predicting future cash flows.Originality/valueThe disaggregation of accrual accounts allows to identify the sources of the informational benefits of accrual accounting, and to document the existence of an informational “trade-off” between smoothness and relevance in the context of public sector entities.

Implementing Accrual-Based Accounting Systems to Improve Transparency and Accountability

Implementing Accrual-Based Accounting Systems to Improve Transparency and Accountability

Determinants of accrual accounting adoption: The role of organizational culture

This study aims to investigate the relationship between communication, training, educational background and the adoption of accrual accounting. It also examines whether organizational culture moderates the relationship between these factors and the adoption of accrual accounting. The census sampling method was utilized to choose 44 finance division staff for this investigation. Structural equation modeling (SEM) using Smart PLS version 3.0 was employed in this paper for data analysis. In addition, a systematic questionnaire was issued to the heads of financial divisions and administrative staff in Riau city, Indonesia, in order to collect relevant data. The findings of this study revealed that the adoption of accrual accounting is influenced by communication and training, while educational background has insignificant effect. Furthermore, the interaction between training and communication in accrual accounting adoption is moderated by organizational culture. Meanwhile, organizational culture does not moderate the relationship between educational background toward the adoption of accrual accounting. Therefore, this study assists local governments in providing feedback on the implementation of various government accounting policies. Moreover, it offers information on local government coordination and solutions for accrual-based accounting systems adoption, which can be utilized as a reference for the public and local government in creating and fully adopting relevant policies. Finally, it can be used to establish and improve administrative structures in the public sector.

Participatory Budgeting and Fiscal Transparency of Local Governments : Moderating Effect of Political Competition

The goal of allowing citizens to participate in local government’s decision-making process is to enhance fiscal transparency and accountability. Under the accrual-based accounting system, however, mayors of local governments have substantial discretion in estimating accounting numbers, as well as political incentives to manage performance in order to appease voters. Accordingly, such participation may fail to achieve its intended objective. Utilizing a unique dataset of 220 Korean local governments’ accrual-based financial statements for 2015-2018, we examine the effect of citizens’ participation in the budgeting process on financial reporting quality and how the effect varies with political competition in local municipalities. We first do not find any significant association between the level of participatory budgeting institutions and financial reporting quality measured by the allowances for uncollectible taxes. This finding is consistent with the countervailing effects involved in the participatory budgeting system (i.e., citizens’ enhanced access to accounting information versus mayors’ opportunistic incentives). However, we find that this relation hinges on the level of municipal political competition, captured by the gap in votes obtained by the incumbent mayor and the second-place candidate in the election. The relation becomes significantly positive when political competition is weaker. This evidence implies that mayors’ political incentives and concerns about re-election dominate the monitoring role of citizen councilors, consequently reducing fiscal transparency. Overall, our results suggest that political competition dampens the positive effect of participatory budgeting on the financial reporting quality of local governments.

Implementasi Perubahan Sistem Informasi Keuangan pada Kantor Imigrasi Kelas I Non TPI Karawang

Financial management in government agencies is very important as it has a "specific" concept of performance, namely responsibility, synergy, transparency and innovation. The financial information system is one of the tools used to record various information system transactions that affect the operation and management of business support activity. The financial management process in the work unit of the Class I, Non-TPI Immigration Office in Karawang can be considered less effective and efficient as it goes through multiple stages with different applications, which underlie changes in the use of financial information. This article is to explain the implementation of changes in the financial information system in the Immigration Service Class I No TPI Karawang The method of writing this article is to combine descriptive qualitative research methods with observations, use of survey techniques, analysis, interpretation of data. and triangle. The results obtained are (1) Changes in the application system in the work unit of the Immigration Office Class 1 Non TPI Karawang generally facilitate tasks and work for users. (2) Comparing time effectiveness is not very important, but using an application to be able to perform different types of financial operations can minimize the occurrence of errors or non-response on a PC during the recording work. (3) The effectiveness of the work summary occurs in the reconciliation phase, where with the latest system the E-Recon reconciliation process between the work units and the PCPN is automated (it is not necessary to use CDA (Computer Data Archive). ) of ABAS (Accrual Based Accounting System) in E-Commerce.econ). (4) The SAKTI application can replace the 6 previous applications used in the Karawang Class 1 Immigration Office. (5) Changes in the financial information system do not reduce the existing existing tasks and functions as financial documents.

The Influence of Local Government Characteristics on Performance Effectiveness According to the Accrual-Based Accounting System

This study aimed to determine the impact of non-financial characteristics on the effectiveness of local government performance by using the accrual-based government accounting system. Data were collected from the audit result report (LHP) of provincial, regency, city and regional government financial statements (LKPD) in Central Java for the 2016-2019 fiscal year, which were compiled based on the government accounting standards statement (PSAP). The results showed that the complexity of local government had a positive effect on the effectiveness of local government performance, while the level of leadership education and audit opinion did not influence the effectiveness of local government performance.
 Keywords: the level of leadership education, audit opinion, the complexity, the effectiveness, local government performance

Effectiveness of accrual basis accounting system in state budget and treasury system in TAM 3 framework

Purpose - This study establishes a basic theoretical model developed using Technology Acceptance Model (TAM 3) with several critical factors on the effectiveness of accrual basis accounting systems in the State Budget and the Treasury System.Method - This basic research uses a causal model with primary data collected quantitatively and presented descriptively. The study population was users of the State Budget and Treasury System in the Regional Office V of Jambi Province using the convenience sampling method.Result - The results of this study stated that all TAM variables were correlated with each other and TAM 3 variables were correlated with the effectiveness of the accrual-based accounting system in SPAN. It was proven that there was a significant relationship between all variables. However, the accrual-based accounting system in SPAN practically does not provide convenience and tends to have low intensity of use and low effectiveness.Implication - The result of this research states that all variables of TAM are correlated to each other and TAM 3 variables are correlated to the effectiveness of accrual basis accounting system in SPAN.Originality - This study focuses on the effectiveness of accrual basis accounting system in State Budget and Treasury System: migration of the Indonesian Islamic banking system of BSI.

Influence Of Internal Control System Weaknesses And Audit Quality On The Quality Of Local Government Financial Reports In Indonesia With Good Government Governance As Moderating

The purpose of this study is to investigate the impact of internal control system weaknesses and audit quality on the quality of financial reports in district and city governments in Indonesia, using Good Government Governance as a moderating variable. The Partial Least Squares-SmartPLS analytic approach is used in this study, which includes data from 2,155 observations from 508 district and municipal administrations in Indonesia since the implementation of the accrual-based accounting system from 2015 to 2019. The findings of this study show that (1) internal control system weaknesses have a positive and significant effect on the quality of local government financial reports; (2) audit quality has a positive and significant effect on the quality of local government financial reports; (3) good government governance can weaken the relationship between internal control system weaknesses and the quality of local government financial reports; and (4) good government governance can weaken the relationship between internal control system weaknesses and the quality of local government financial reports. This study sheds new light on the relationship between internal control system weaknesses and the quality of public sector audits since the adoption of the accrual-based accounting system, as well as the quality of local government financial reports, with Good Government Governance acting as a moderator.

Penerapan Sistem Akuntansi Berbasis Akrual Pada Penyusunan dan Penyajian Laporan Keuangan di Pengadilan Tinggi Agama Kupang

Based on PP No. 71 2010 Article 1 paragraph (8) states that what is meant by the Accrual-Based Government Accounting System (SAP) is SAP which recognizes revenues, expenses, assets, debts, and equity in accrual-based financial reporting, and recognizes revenues, expenditures, and financing in accrual-based financial reporting. reporting on budget implementation based on the basis set out in the APBN or APBD. This study aims to determine the application of accrual-based accounting in the preparation of financial statements at the Kupang Religious High Court. This type of research is descriptive with data collection methods used are observation, interviews and documentation. The results of this study explain that The Kupang Religious High Court uses the accrual basis in the preparation and presentation Balance Sheet, Operational Report, and Report on Changes in Equity and cash basis for the preparation and presentation of the Budget Realization Report. This Financial Report is generated through the Accrual-Based Agency Accounting System (SAIBA) and the State Property Management and Accounting Information System (SIMAK-BMN). The Kupang Religious High Court has succeeded in implementing the accrual-based accounting system well because it is supported by the understanding and ability of the finance staff in the field of government accounting and the competent use of SAIBA, SIMAK-BMN, and other supporting applications.

Determinan Keberhasilan Penerapan Sistem Akuntansi Instansi Berbasis Akrual Dalam Penyusunan Laporan Keuangan Pemerintah

The manifestation of the application of government accounting standards is the WTP opinion from BPK. This study aims to examine the effect of financial staff education, accounting training, the use of the SAIBA application, and organizational commitment to the successful application of an accrual-based accounting system. This research was conducted at the Land Office work unit within the scope of the NTB Province BPN Regional Office. Respondents numbered 63 people. Data analysis techniques used multiple linear regression analysis. The results showed that organizational commitment had a positive effect, the use of the SAIBA application had a negative effect, but financial staff education and accounting training had no effect on the successful application of the accrual-based agency accounting system.
 Keywords: Financial Staff Education; Accounting Training; SAIBA; Organizational Commitment; Accrual Based Institution Accounting System.

Accrual accounting and public finance reforms in Hungary: the study of application in the public sector

Introduction. The increasing measurability of performances in the public sector in the countries of the post-soviet region, including Hungary, has come to the limelight in recent decades. Accrual accounting, adopted in Hungary in 2014 on the recommendation of the European Union, provides decision-makers with reliable information and simultaneously improves transparency in spending. Purpose and Methodology. This study focuses on the impacts and synergies of the parallel comprehensive reforms in the public finances and the adoption of the accrual accounting system. We conducted an empirical research among 2425 budgetary organisations (during June 2018 - January 2019) and analysed the correlation between the variables with cross-table analysis. Our survey covered 19.1 per cent of all the budget organisations in Hungary. Thus, thanks to the sample size the survey results analysis gives a comprehensive view of the entire country based on the real feedback regarding the implementation of the new practices. Results. In the course of the survey, the organisations were asked to describe how they were affected by the transition to the new accounting system, how they had prepared for the statutory changes and compliance, what additional tasks the adoption of the new system required of them, and how they evaluated the impacts of the application of accrual accounting after five years. The inquiry focussed on the impact this new accrual-based accounting system had on the business management of the given organisation and thus the efficient use of public funds. The results confirm that the historical background and the peculiarities of managing public funds in a country should also be taken into account during the adoption of reforms along with thorough preparation. Our research also sheds light on the fact that the successful 2014 adoption of accrual accounting could achieve its full purpose in an environment ensured by comprehensive public finance reforms and laws adopted after 2010. In other words, the precondition of enforcing the new rules of accrual accounting applied in the public sector included the reinforcement of budgetary regulation and control procedures. Conclusion. The study reports more favourable public sector procedures, proves that the adoption of accrual accounting has been justified and that the higher focus on performance and efficiency achieved through accrual accounting is important.

New development: Budgetary accounting in Colombia—arguments for a much-needed reform

ABSTRACT Public financial management reforms are needed in Colombia to integrate the accrual-based accounting system with budgets. This would remove the need to make accounting variations through deficit measurement and would supply better information about the impact of public policies on the country’s financial situation. This article briefly explains why Colombia needs to integrate its accounting and budgeting systems.

PEMAKNAAN PENERAPAN AKUNTANSI BASIS AKRUAL

This study is a qualitative study of the application of the accrual-based Government accounting system to the Government of North Toraja Regency. The purpose of this study is to interpret the application of accrual-based Government Accounting Standards (SAP) to the Government of North Toraja Regency. Data in this study were collected through observation, documentation, and interviews with five informants directly related to the implementation of accrual-based Governent Accoutning Standards (SAP). The data that has been collectted is then analyzed and interpreted by qualitative methods using an interpretive approach. The results showed that the application of accrual-based Government Accounting Standards (SAP) in the North Toraja Regency Government was a reflection of a formality. This is supported by the existence of government regulations that require all local governments including the North Toraja Regency Government to implement accrual-based Government Accoutning Standards. The complexity of the financial statements is a major factor in the resistance attitude of the North Toraja Regency financial management in the accrual-based Government Standard implementation. Meanwhile, in terms of organizational culture, the North Toraja Regency Government is required to apply accrual-based Government Accounting Standards

IMPLEMENTASI STANDAR AKUNTANSI PEMERINTAH (SAP) BERBASIS AKRUAL DI INDONESIA

Accrual-based accounting system is a modern accounting system that is widely applied in developed countries. While Indonesia has been using an accrual-based accounting system in the private sector for a long time. however, for the government sector, before 2010 Indonesia still used cash basis and cash toward accrual basis. But after the issuance of PP 71 of 2010 all government sectors are required to use an accrual basis to prepare their financial statements. The application of the accrual basis is expected to be able to improve the performance of government units. This improvement will be demonstrated by the better opinion obtained on financial statements, both LKPP and LKKL. And the improved opinion obtained will increase public confidence in the government regarding the use of funds that have been obtained from them. Therefore, for the implementation of accrual basis accounting to be fully implemented, several requirements are needed, including: (1) Improvements that must be made to an adequate accounting system and accounting technology, including a reliable internal control system; (2) The availability of competent accountants as adequate HR requirements; (3) Appropriate strategies are used for applying the accrual basis; (4) political commitment; and (5) communicating the purpose of applying this basis.
 Keywords: government accounting standard, accrual based accounting

Does accrual accounting alter fiscal policy decisions? - Evidence from Germany

Many governments have replaced traditional cash-based accounting with some form of accrual-based accounting system. However, empirical evidence on the effects of the public accounting system on fiscal policy is scarce. Following rules by the federal states, municipalities in Germany have adopted accrual-based accounting systems gradually. By exploiting variations over time and across states I find no evidence for an impact on the overall financial balance. However, my findings suggest that accrual accounting has altered the structure of the budget. Revenues from the sales of non-financial assets have decreased significantly. This supports the hypothesis that municipalities had used these one-off measures before to meet fiscal constraints. Using data on entities controlled by the municipalities, the analysis provides no evidence for repercussions on these public funds, institutions or enterprises.

HUMAN RESOURCES OPTIMIZATION AND UTILIZATION OF ACCRUAL BASED ACCOUNTING INFORMATION TECHNOLOGY ON PERFORMANCE OF SURAKARTA CITY GOVERNMENT FINANCIAL REPORTING

This research is conducted by explaining about two research variables, namely Optimization of Human Resources and Utilization of Accrual-Based Accounting Information Technology has a positive influence on Financial Reporting Performance. The research sample was employees of the Badan Pendapatan, Pengelolaan, Keuangan, dan Aset Daerah (BPPKAD). Data collection is done by taking 35 respondents from BPPKAD employees using questionnaires as research instruments. The sampling technique uses a purposive / judgment sampling method which was developed from the results of research by Umar Sekaran (2006).IITheIIresultsIIofIItheIIstudy show that H1 research has aIIIpositiveIIIinfluence on the financial statement performance variables, as well as H2 which has a positive influence on the performance of financial statements. In the F test shows the results that the two variables have a simultaneous influence on Y.
 Keywords: optimization, human resources, utilization, accrual based accounting system, accounting information system.

Analysis Effect of Accrual Discretion Against SILPA (SIKPA) Budget Calculations on Local Government

The research we carry out is aimed at researching the implementation of measures taken by the local government (discretionary accruals) to the substantial amount of the budget obtained local governments in the current year. The government has issued regulations governing the Home Minister on the implementation of government's implementation of accrual based accounting system. Also, the government has issued Government Regulation No. 71 of 2010 concerning the Government Accounting Standard (PSAP) based on accrual. Governments in developing government accounting standards has also attempted to adopt international public sector accounting standards (IPSAS).Our study is a continuation of a research study before we take on research on the level of accrual in the financial statements of Local Government and research on the effect of discretionary accruals on revenue of local governments. This study uses some model approach