IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2024-05-2.html
   My bibliography  Save this article

Measurement of Factors That Can Improve the Implementation of Accrual-Based Accounting in Regional Government Agencies

Author

Listed:
  • Cecilia Lelly Kewo

    (Universitas Negeri Manado, Indonesia)

  • Stella Theodora Kewo

    (Universitas Pembangunan Indonesia, Indonesia)

Abstract

Accruals provide financial information that is more relevant and reliable in financial reporting and decision-making. Therefore, this research aims to analyze the factors that influence the implementation of accrual accounting in government, namely financial regulatory factors, employee competence, and commitment to the organization. The primary data used was taken from 173 government agencies in Indonesia using random sampling, then the collected data was analyzed using structural equation modeling with a partial least squares approach with an alpha of 5%. The results show that financial regulations, employee competence, and commitment to the organization have a positive impact on the implementation of accrual accounting in government. This has significant implications for the government to increase the implementation of government accounting standards, increase employee competency through training and development related to accounting practices and knowledge, and increase commitment to the organization through developing an organizational culture that supports the implementation of accrual accounting in government.

Suggested Citation

  • Cecilia Lelly Kewo & Stella Theodora Kewo, 2024. "Measurement of Factors That Can Improve the Implementation of Accrual-Based Accounting in Regional Government Agencies," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 10-17, September.
    • Handle: RePEc:eco:journ1:2024-05-2
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/16467/8092
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/16467
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Suzanne Flynn & Delphine Moretti & Joe Cavanagh, 2016. "Implementing Accrual Accounting in the Public Sector," IMF Technical Notes and Manuals 16/06, International Monetary Fund.
    2. Retno Yuliati & Yuliansyah Yuliansyah & Yang Elvi Adelina, 2019. "The implementation of accrual basis accounting by Indonesia’s local governments," International Review of Public Administration, Taylor & Francis Journals, vol. 24(2), pages 67-80, April.
    3. Elisa Bonollo, 2022. "Negative effects of the adoption of accrual accounting in the public sector: a systematic literature review and future prospects," Journal of Public Budgeting, Accounting & Financial Management, Emerald Group Publishing Limited, vol. 35(6), pages 1-27, December.
    4. Ms. Suzanne Flynn & Delphine Moretti & Joseph Cavanagh, 2016. "Implementing Accrual Accounting in the Public Sector," IMF Technical Notes and Manuals 2016/006, International Monetary Fund.
    5. Suzanne Flynn & Delphine Moretti & Joe Cavanagh, 2016. "Implementing Accrual Accounting in the Public Sector," IMF Technical Notes and Manuals 2016/06, International Monetary Fund.
    6. Heru Fahlevi & Irsyadillah Irsyadillah & Imam Arafat & Muhammad Ichsan Adnan, 2022. "The inefficacy of accrual accounting in public sector performance management: Evidence from an emerging market," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2122162-212, December.
    7. Nurul Hidayah & Wahyudin Zarkasyi, 2017. "The Effect of Human Resources Management Competency and the Role of Culture on Accrual Accounting Implementation Effectiveness and the Impact on Quality of Accounting Information," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 183-199.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bessho, Shun-ichiro & Hirota, Haruaki, 2023. "Do public account financial statements matter? Evidence from Japanese municipalities," European Journal of Political Economy, Elsevier, vol. 78(C).
    2. Hanane Jafi & Said Youssef, 2021. "Public sector accounting education and training as supportive mechanisms of the ongoing accrual-based accounting reforms," Technium Social Sciences Journal, Technium Science, vol. 25(1), pages 1-8, November.
    3. Florian Dorn & Stefanie Gaebler & Felix Roesel, 2021. "Ineffective fiscal rules? The effect of public sector accounting standards on budgets, efficiency, and accountability," Public Choice, Springer, vol. 186(3), pages 387-412, March.
    4. Cangoz,Mehmet Coskun & Boitreaud,Sebastien-000379895 & Dychala,Christopher Benjamin, 2018. "How Do Countries Use an Asset and Liability Management Approach ? A Survey on Sovereign Balance Sheet Management," Policy Research Working Paper Series 8624, The World Bank.
    5. Désirée I. Christofzik & Florian Dorn & Stefanie Gäbler & Christian Raffer & Felix Rösel, 2020. "Bremst die Doppik öffentliche Investitionen? Ergebnisse aus drei aktuellen Evaluationsstudien [Does Accrual Accounting Reduce Public Investment? Evidence from Three Recent Evaluation Studies]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(9), pages 707-711, September.
    6. Elisha Adeboye & Gbemisola Labisi & Victor Ekere, 2024. "Enhanced Financial Reporting for Unfunded Obligations in the US Economy," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(5), pages 1637-1646, May.
    7. Christofzik, Désirée I., 2019. "Does accrual accounting alter fiscal policy decisions? - Evidence from Germany," European Journal of Political Economy, Elsevier, vol. 60(C).
    8. Raffer, Christian, 2020. "Accrual Accounting and the Local Government Budget - A Matching Evaluation," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224630, Verein für Socialpolitik / German Economic Association.
    9. André Amante & Phillip Anderson & Thordur Jonasson & Herman Kamil & Mr. Michael G. Papaioannou, 2019. "Sovereign Asset and Liability Management in Emerging Market Countries: The Case of Uruguay," IMF Working Papers 2019/290, International Monetary Fund.
    10. Retno Martanti Endah Lestari & Wahyudin Zarkasyi & Ida Farida, 2020. "The Influence of Biological Asset Accounting Policies and Corporate Governance Practices on the Financial Performance: Moderating Role of Knowledge about Renewable Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 615-622.
    11. P. V. Zhuravlev & I. A. Epishkin & G. N. Chernukhina & M. V. Zavyalov & V. V. Varlamova & O. Yu. Voronkova, 2018. "Development of Human Capital in the System of Economic Categories of Work," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 107-117.

    More about this item

    Keywords

    Financial Regulations; Competency; Organizational Commitment; Accrual-Based Accounting;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2024-05-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.