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Accrual Basis Landscape: The Absence of Political Will in Preventing Dysfunctional Behaviour in Indonesia

Author

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  • Syarifuddin

    (Faculty of Economics and Business, University of Hasanuddin, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective - This research aims to reveal the failure of accrual accounting to create good governance and clean government in local governments in Indonesia. Additionally, the research seeks to examine the increase in accrual based rapid growth in Indonesia and the instance of corruption among government officials. Methodology/Technique - In connection with this objective, the study explains the practical perspective of political intervention during the adoption of accrual accounting and examines the role of the community in the implementation of accrual accounting using a critical phenomenology method. Findings - The findings of this study show that accrual-based accounting encourages deviant behaviour within the public sector and hence, good governance and clean government cannot be achieved. Accrual basis in this regard becomes a means for actors to conceal fraud by exploiting the weaknesses of accrual-based accounting to allow for creative accounting. Novelty - This study uses a qualitative method to describe the implementation of accrual-based accounting in local governments in Indonesia, which is a new approach to this phenomenon.

Suggested Citation

  • Syarifuddin, 2018. "Accrual Basis Landscape: The Absence of Political Will in Preventing Dysfunctional Behaviour in Indonesia," GATR Journals afr160, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr160
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    References listed on IDEAS

    as
    1. James L. Chan, 2003. "Government Accounting: An Assessment of Theory, Purposes and Standards," Public Money & Management, Taylor & Francis Journals, vol. 23(1), pages 13-20, January.
    2. Mr. Richard I Allen, 2009. "The Challenge of Reforming Budgetary Institutions in Developing Countries," IMF Working Papers 2009/096, International Monetary Fund.
    3. Johan Christiaens, 1999. "Financial accounting reform in Flemish municipalities: an empirical study of implementation and annual financial reports," European Accounting Review, Taylor & Francis Journals, vol. 8(4), pages 803-804.
    4. John Perrin, 1998. "Resource Accounting and Budgeting : From Cash to Accruals in 25 Years," Public Money & Management, Taylor & Francis Journals, vol. 18(2), pages 7-10, April.
    5. Ron Hodges & Howard Mellett, 2003. "Reporting public sector financial results," Public Management Review, Taylor & Francis Journals, vol. 5(1), pages 99-113, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Accrual; Accounting; Public Sector; Good Governance; Clean Government; Indonesia.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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