THE INFLUENCING FACTORS ON THE LEVEL OF ACCRUAL ACCOUNTING ADOPTION: A CONCEPTUAL APPROACH

Khoirul Aswar () and Siti Zabedah Saidin
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Khoirul Aswar: Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Malaysia, Jakarta
Siti Zabedah Saidin: Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Malaysia

Romanian Economic Business Review, 2018, vol. 13, issue 2, 30-36

Abstract: Beginning from the assumption that accrual accounting is useful in ensuring the high performance of management systems, this study attempts to determine to what extent municipalities comply with new accounting standards in Indonesia with a focus on municipalities in the provinces of Sumatera and Java. Drawing from institutional theory, this study has two objectives: (i) to investigate to what extent municipalities comply with the accounting standards stipulated in PP No. 71 of 2010, (ii) to examine the relationship between explanatory factors such as, training programs, information technology, and internal communication, and the level of accrual accounting adoption in Indonesia's municipalities. Therefore, this study contributes to identifying input into the adoption of Government Regulation No. 71 of 2010 in order to apply accrual accounting to the fullest and to minimize errors in financial reporting with the analysis of possible obstacles faced in implementing accrual accounting

Keywords: Accrual Accounting; Compliance; Government Regulation; Explanatory Factors (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (5)

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