Accounting standards for semi-autonomous agencies: Experiences and lessons from Indonesia (original) (raw)
Related papers
The adoption and the importance of accrual accounting for government have expanded over in almost all countries. Following the global trend, the Indonesian administration has implemented the Government Accounting Standard since 2005. This paper examines accounting practices in the higher education from the agencification perspective, by exploring the distinctive topics consisting of background of standard formulation, process of standard setting, design of accounting standard, and single standard dilemma. It focuses on examining the use of dual accounting standard in supporting agencification by employing case study, which is supported by descriptive statistical analysis, through an exploration in four different higher educations in Indonesia. The result shows that the central feature of accounting in the selected public service agency is unnecessary dual standards. Furthermore, there are serious constraints that could hinder the higher education to improve their reporting as some existing mechanisms make the accounting system unable to be maximally implemented. The weaknesses and the hindrances are particularly in the accounting system design.
Journal of Economics and Behavioral Studies
The purpose of this quantitative research is to test and prove empirically the effect of applying accrual-based accounting standards in Indonesia. The population in this study is the head of the financial subdivision and the financial staff of the regional government organizational unit in the DKI Jakarta province. The study used the random sampling method and managed to collect 84 respondents. Structural Equation Modeling (SEM) is used in this study as a data analysis test tool using Smart PLS software version 3.0. The results show that the quality of human resources and organizational commitment has a significant effect on the application of accrual-based accounting standards in Indonesia. Meanwhile, training and organization culture does not have a significant influence on the implementation of accrual-based accounting standards in Indonesia. The contribution for local government to improve their performance in reporting local government financial statements (LKPD) and assess the...
Public and Municipal Finance
Public sector accounting reforms have resulted in crucial changes in accounting reporting by the government, namely the adoption of accrual accounting in the public sector. This study looks into the social factors that led to the Indonesian central government implementing accrual accounting reform. This study adopted a quantitative approach using purposive sampling. Structural Equation Modeling (SEM) with PLS version 3.0 was used to analyze the data. The information for this study was gathered using a Google Form, which was used to send 70 questionnaires to government finance officials, chief accountants and auditors, and heads of accounting and auditing divisions in the Ministry of Finance. Seeing these social factors is expected to increase the effectiveness of the administration of accrual accounting implementation. The results showed that pressure from donors, pressure from the National Board of Accountants and Auditors (NBAA), political will, and audit process had an impact on ...
Accrual-Based Accounting Infrastructures in Indonesian Local Government
Research Journal of Finance and Accounting, 2019
We examine accrual-based accounting infrastructure in Indonesian local government (provinces and municipalities), by interviewing officials and analysing their qualitative responses using Nvivo 12 software. We find that the success of accrual accounting depends on the commitment and understanding of local officials, and the most important part of infrastructure is policy regulations and systemscreating and reviewing financial reports. Interestingly, an academic accounting background is not essential for staff due to availability of computerised Accounting Information Systems (SIA).
Analysing the quality of accrual accounting implementation in indonesia local governments
Jurnal Akuntansi, 2018
The main objective of this study is to assess the quality of accrual accounting implementation in Indonesia local governments. In the context of Indonesia local government, to the author's knowledge, this study is the first in proposing a concept to assess the quality of accrual accounting, which is based on the timeliness of transaction recognition. The quality of accrual accounting is assessed through five types of accrual transactions, which are converting assets to expenses transactions, accruing unpaid expenses transactions, accruing unpaid assets transactions, accruing uncollected revenues transactions, and converting liabilities to revenues transactions. This research is descriptive qualitative research because this research aims to provide facts about quality of accrual accounting implementation in Indonesia local government. The data used in this study is primary data in the form of questionnaires obtained directly from the respondents. The respondents of this study are...
The Implementation of Accrual Basis Accounting in Indonesian Local Government
Journal of Economics and Behavioral Studies
This study is based on the Government Regulation No 71 of 2010 concerning Government Accounting Standards which have been enacted since 2015. In the period of this regulation enactment, there are obstacles that occur and it causes culpabilities in accrual basis accounting reporting. The objective of this study is to discover the factors which affect the accrual basis accounting implementation. Utilizing institutional theory as the theoretical basis to establish the framework that correlate training, communication, educational background, organizational culture, and implementation of accrual basis accounting. This study was conducted using quantitative method in local government of Bekasi. Therefore, this study contributes to regional government in order to able to provide the input in implementing a policy, specifically the Government Accounting Standards; provide information in regard to the obstacles and solutions which affects the implementation accrual basis accounting in Region...
jurnal.pdii.lipi.go.id
This study discusses the development of New Public Management (NPM) and accounting reform in public sector organization. The first part of this study discusses the theoretical concept and Characteristics of NPM as well as the relevant factors behind the development of NPM around the world. The second part tries to relate accounting reform in the context of NPM. Special attention is also given to complexities emerge in the implementation of accounting reform, that is a movement from single entry and cash basis accounting into accrual based and double entry accounting systems. At the end, this study discusses the institutional perspective in sociology relevant to public sector accounting, specifically correlated to the process of accounting reform. As Indonesia now is in the process of implementing autonomy and decentralization policies which one of its initiative is putting accrual double entry accounting systems in place, this study also specifically highlight the process of accounting reform in Indonesia.
Ilomata International Journal of Tax and Accounting
The discussion in this article is about changes in government accounting, a significant change from government accounting in Indonesia is from cash-based accounting to cash-based accounting towards accruals (cash toward accruals), to full accruals. The writing method used is a literature study with a qualitative approach . The research method used is a literature study with a qualitative approach. Sources of data were obtained through searching articles related to accounting policies carried out by the government. The purpose of this study is to identify and analyze the challenges in reforming government accounting policies in Indonesia. The finding of the study that state that the government needs to prepare financial statements in accordance with Law No. 17 of 2003 which refers to Government Accounting Standards (SAP/standar akuntansi pemerintahan). As a derivative of this regulation, the government has issued Government Regulation Number 24 of 2005 which was updated with Governme...
Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan dan Akuntansi, 2019
In Indonesia local government, accrual based Government Accounting Standard (GAS) was started to be mandatorily applied in 2015, so this research aims to investigate to what extent the role of accrual GAS implementation toward quality of financial reporting and financial performance especially at local governments. Population of this study is Local Governments of districts/cities in Indonesia for Fiscal Year 2014 and Fiscal Year 2015, as many as 542 local governments (before and after the implementation of accrual base). Sampling method uses probability sampling which is cluster sampling. In this case, the population is divided based on 34 province clusters, so the number of sample obtained is 242 local governments of districts/cities in Indonesia. The hypothesis testing uses paired t test. The object of research is the financial reporting quality and financial performance. The results of this study provide empirical evidence that there is an increase in the quality of financial reporting after the application of accrual-based accounting at local governments in Indonesia, but have not proven the existence of the increased financial performance. There is no differences in financial performance before and after accrual based accounting implementation at local governments in Indonesia. This hyphothesis was not supported due to the application of accrual basis accounting is still in the early stages of implementation (1 year) that still have constraints in limited human resources competencies, necessary adaptations or adjustments in the process of change. Local governments in Indonesia must apply accrual based accounting because it is proven that it increases financial report quality. However, the system implementation in the beginning period found many obstacles so it needs continuous adjustment and learning in order to reach desirable goal. There is still a debate on how important is the implementation or adoption of accrual IPSAS in many countries, including Indonesia. In Indonesia, the implementation of accrual based Government Accounting Standard (SAP/GAS) is new mandatory since 2015. The result of this research will give contribution to the theory, that there is significant influence of implementation accrual based GAS to financial reporting quality, but no significant increase in financial performance (efficiency and effectiveness) at local government. Therefore, this result study will be used to determine related policies about the implementation of accrual based GAS.
International Journal of Approximate Reasoning, 2016
Starting from 1 January 2015, all local governments in Indonesia implement accrual accounting. There is a big question as of how good the implementation. Therefore, the objective of this study is to assess the implementation of accrual accounting in a local government in Indonesia for the first three months. This study utilizes descriptive-qualitative research method. This study finds that almost all of the working unit in the local government has not implemented the accrual accounting properly because the implementation is not conformed to the Government Accounting Standards. However, the local government showed a tendency to improvement. Problems in the implementation involved inadequate human resource capacity, poor commitment and poor intention of leaders of local government working units to implement accrual accounting, the poor infrastructure of accrual accounting, and poor organizational and internal coordination of local government working unit. Findings of this study will c...