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Assessing Accrual Accounting Implementation in Cianjur Regency: An Empirical Investigation

Author

Listed:
  • Aditya Wira Dianto

    (Universitas Pembangunan Nasional Veteran Jakarta, Jl. RS Fatmawati No.1 – Pondok Labu, Jakarta Selatan 12450)

  • Khoirul Aswar

Abstract

Purpose: This research aimed to analyse the effect of top management support, training and communication on the implementation of accrual accounting. Design/methodology/approach: The hypotheses of the study were tested using the survey data from 63 working unit in Cianjur Regency. The instrument for content and construct validity and reliability was tested. Then, the hypotheses were tested using Structure Equation Modelling (SEM) by SmartPLS 3.0. Finding: This study found that top management support and training have significant relationship with implementation of accrual accounting. Meanwhile, communication has no significant relationship with implementation of accrual accounting. Research limitations/implications: This study contributes to provide input into the adoption of Government Regulation No. 71 of 2010 in order to apply the rule of accrual accounting to the fullest, and to minimize errors in financial reporting with the identification of possible obstacles faced in implementing accrual accounting. This study recommended that, more factors such as consultant support, education level and project management support are needed to complement and improve financial reporting with implementation of accrual accounting. Originality/value: To the best of the researcher's knowledge, no study of Cianjur Regency has tested the impact of factor such as top management support, training and communication on implementation of accrual accounting.

Suggested Citation

  • Aditya Wira Dianto & Khoirul Aswar, 2020. "Assessing Accrual Accounting Implementation in Cianjur Regency: An Empirical Investigation," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 13(1), pages 7-13, April.
    • Handle: RePEc:tei:journl:v:13:y:2020:i:1:p:7-13
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    References listed on IDEAS

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    1. Cavalluzzo, Ken S. & Ittner, Christopher D., 2004. "Implementing performance measurement innovations: evidence from government," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 243-267.
    2. Khoirul Aswar & Siti Zabedah Saidin, 2018. "Accrual Accounting Adoption In Java Municipalities: An Empirical Investigation," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 11(3), pages 24-30, December.
    3. Khoirul Aswar & Siti Zabedah Saidin, 2018. "The Influencing Factors On The Level Of Accrual Accounting Adoption: A Conceptual Approach," Romanian Economic Business Review, Romanian-American University, vol. 13(2), pages 30-36, June.
    4. J. Christiaens & V. Van Peteghem, 2004. "Governmental Accounting Reform: Evolution Of The Implementation In Flemish Municipalities," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/256, Ghent University, Faculty of Economics and Business Administration.
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    Citations

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    Cited by:

    1. Vania Talitha & Khoirul Aswar, 2021. "Implementation of Accrual-Based Government Accounting Standards in Indonesia: A Review of Organizational Factors," Journal of Economics and Behavioral Studies, AMH International, vol. 13(5), pages 22-31.
    2. Jo-Ting Wei, 2021. "Financial Reporting Material Misstatements, Earnings Conservatism and Managerial Replacement Decisions," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 14(1), pages 7-21, June.
    3. Albertus Theo Jonathan & Khoirul Aswar & Ermawati, 2020. "The Implementation of Accrual Basis Accounting in Indonesian Local Government," Journal of Economics and Behavioral Studies, AMH International, vol. 12(4), pages 67-72.

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    More about this item

    Keywords

    Implementation of Accrual Accounting; Training; Top Management Support; Communication;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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