The Effect Of Implementation Of Accrual-Based Government Accounting Standards On The Quality Of Local Government Financial Reports (original) (raw)
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Journal of finance and accounting, 2024
Globalisation has increased the interconnection of economies and cultures across the globe, which led to the need for uniformity in reporting public finance in the form of International Public Sector Accounting Standards (IPSAS), designed to harmonise accounting practices in the public sector across countries. Even though IPSAS has been ascribed to be beneficial, not all countries have adopted it at the same level. This work study seeks to ascertain the Effect of The Adoption of Accrual Accounting on the Quality of Financial Reports in Public Institutions in Rwanda, particularly in Nyamasheke district, through assessing the effect of revenue recognition, determining the effect of expenses recognition, analysing the effect of liability recognition and assessing the effect of asset recognition, on the quality of financial reports in public institutions, from 2020 to 2023. This study was conducted on a sample size of 51 accountants, budget officer, Director of finance and Director of Administration and Finance who were purposively selected from public institutions locating in the study area, namely hospitals, district headquarter, health centers, boarding schools and sector offices for to answer to a questionnaire for both descriptive and correlative analytical fact, with the help of SPSS version 20. A mixed survey design, being both descriptive and correlative, was used in this study where, in the context of accrual accounting adoption and quality of financial reporting, this study involved gathering and analyzing data to describe the current state of accrual accounting adoption and correlate it with the quality of financial reports. The study revealed that the revenue recognition with (B=0.728; t=3.978, p=.035); Expenses recognition with (B=0.587; t=3.787, p=.036); liability recognition with (B=0.834; t=4.821, p=.014) and asset recognition with (B=0.556; t=2.896, p=.047) were significantly affecting quality of financial report, but at low level as proven by the R-square of 0.106. on the other hand, the study concluded that adoption of accrual accounting had a weak significant positive effect on quality of financial report in public institutions in Rwanda. Therefore, it was recommended for public institutions to invest in comprehensive training and capacity-building programs for staff members involved in financial reporting; working towards standardizing their practices in revenue recognition, liability recognition, expenses recognition, and asset recognition and be actively engaged in the implementation process and ensure that their recognition practices are in accordance with IPSAS guidelines.
https://www.ijrrjournal.com/IJRR\_Vol.9\_Issue.7\_July2022/IJRR-Abstract51.html, 2022
This study aims to test, analyze and provide empirical evidence of the influence of human resource competencies, local government information systems, accountability, internal control systems, and organizational commitment affect the quality of the financial statements of the Regional Government of South Tapanuli Regency. Research respondents were the Head of Finance Subdivision, Treasurer of Receipt and Treasurer of Regional Apparatus Organization Expenditures as many 104 respondents. This study uses primary data. The data analysis used is Partial Least Squares Structural Equation Modeling (PLS-SEM) with the Smart PLS 3.0 software program. The results showed that human resources, local government information systems, accountability, internal control systems and organizational commitments had a positive effect on the quality of the financial statements of the Regional Government of South Tapanuli Regency.
2020
This study aims to analyze the effect of the application of government accounting standards, regional financial accounting systems and internal control on the quality of financial statements with organizational commitment as a moderating variable in South Tapanuli Regency. The research was conducted in 2019, using SPSS software with quantitative methods. The result is that government accounting standards, regional financial accounting systems and internal control have a significant effect on the disclosure of the quality of financial statements simultaneously, and partially government accounting standards, have a significant effect on the quality of financial statements, while regional financial accounting systems and internal control have no significant effect on quality of financial statements. Organizational commitment is not able to moderate government accounting standards, regional financial accounting systems and internal control over the quality of financial statements.
Fokus Ekonomi : Jurnal Ilmiah Ekonomi
This study aims to analyze how much the commitment of local government officials is to support the quality of financial reports through the use of information technology (e-reporting use) to support the success of the Semarang city government in obtaining Unqualified Opinion (WTP). Based on the results of the BPK audit the last five years showed that the Semarang city government experienced significant growth. Even Semarang city government is the only local government that has been able to apply accrual accounting bases in Central Java Province. The population in this study were all Regional Work Units (SKPD) in the Semarang City government as many as 50 SKPD. Samples were obtained using purposive sampling method. The sample obtained by 75 respondents from 15 SKPD in Semarang City Government for the analysis unit is the Head of SKPD and the Head of Finance & Accounting Section at the SKPD. To analyze and identify hypotheses, multiple regression analysis is used to determine the effe...
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.
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...
Journal of Accounting and Financial Management, 2019
The call for greater transparency and efficiency in government reporting began long ago, but today has taken a new dimension. A combination of reasons ranging from increased public expectations from the government (in terms of service quality), dwindling oil revenue, need for more transparency and most importantly accountability in government financial reporting, have led to several financial reforms in public sector financial management globally. This study examined the relationship between accrual-based accounting and faithful representation, comparability and understandability of the financial statements (all proxies of financial statements quality) of Local government authorities in Nigeria. The study adopted the survey design. The population consisted of staff, accountants, auditors and other parties, who make use of financial reports of local government authorities in Nigeria. Data were collected through the questionnaire in the Rivers State of Nigeria and analysed using Pearson Product Moment Correlation. The study concluded that accrual-based accounting influenced quality of financial reports of local government authorities in Nigeria significantly and positively. It was recommended that the adoption of and seamless implementation of accrual-based financial reporting will ensure improved financial quality of the local government financial reports in Nigeria and should be encouraged.
International Journal of Business Management and Economic Review
The purpose of this research is to examine the effect of government accounting standard, the quality of human resource, the effectiveness of the internal control system and the regional financial accounting system, either simultaneously or partially on the quality of local government financial report of Government Work Unit (SKPK) Aceh Singkil District. The population of this research is the SKPK of Aceh Singkil which includes 46 offices in the Regency. Each SKPK consists of 3 (three) people who will be respondents, namely the head of the SKPK or Budget User (PA), the head of the accounting department or the Financial Administration Officer (PPK) and the accounting staff or PPK Assistant, so the total number of respondents are 138 people. The research employs primary data through the acquisition of questionnaires from respondents. While the research data collection technique was carried out by using documentation tool, the analytical method used is Multiple Linear Regression Analysis. The results showed that government accounting standard, the quality of human resource, the effectiveness of the internal control system and the regional financial accounting system have a significant influence on the quality of local government financial reports of the regency.
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This study aims to examine the influence of human resources, information technology, and organizational culture on Indonesian local governments’ readiness in implementing accrual accounting system. The hypotheses were tested by using quantitative approach with the utilization of survey method. The unit of analysis consists of 52 working units of government institution in Aceh, Indonesia. Simple random sampling technique was employed and a total of 92 respondents participated in the survey. The result shows that human resources and information technology influence government readiness in implementing accrual accounting while organizational culture does not. The findings of this study imply that the government entities need to further strengthen its human resource and information technology to fully support the successful implementation of accrual based accounting system.
Accrual Accounting Practice and Financial Performance in Local Governments of Cameroon
ESJ Social Sciences, 2021
This paper focuses on assessing the relationship between accrual accounting practice and financial performance in local governments in Cameroon. Using accountability and efficiency as performance proxies, the study employs a mix of qualitative and quantitative research approaches with a triangulate method of data collection. In a population of 374 councils, 50 councils were sampled and clustered according to their statutory council categories. Both descriptive and inferential statistics were used with a multiple regression analysis on panel data to test the relationship between accrual accounting practice and financial performance within council categories. The findings revealed that about 77% of councils (predominantly rural councils) practicing mild accrual accounting scored a higher financial performance. Meanwhile, 23% of councils (mostly city councils) practicing a moderate and sometimes strong accrual accounting had a lower financial performance. The pooled regression analysis showed a 13 % insignificant but positive correlation between financial performance and accrual accounting practice. These findings were then backed up with inferences drawn from interviews, discussions as well as a content study of accounting books. It revealed that councils have the latitude to navigate from mild, moderate, and strong accrual accounting practice as the need arose. Accrual accounting practice should be