The Implementation of Accrual Accounting in Italian Local Authorities: The New Accounting System for Public Administrations

This study aims to explore the initial approach taken by Italian local authorities, through the “Pilot Phase,” towards the introduction of the new accrual-based accounting system. The motivation for this research lies in the need to understand and evaluate the effectiveness and challenges of introducing accrual accounting systems in a context with a long tradition of cash accounting, highlighting the role of ITAS as a necessary tool that allows economic transactions to be recorded in the period in which they occur, rather than when cash flows occur. This work is part of the debate on accounting change studies, with the aim of using empirical analysis to study the operational difficulties, technical capabilities, and adaptation times experienced by local authorities in this initial transition phase. The objective is to highlight the challenges related to the technical, organizational, and cultural complexities that often affect the process of adopting a new accounting reform. The adaptation of reporting information systems, cultural resistance to change, and the need for continuous training are just some of the critical issues that must be addressed. This work provides useful guidance for outlining the support of key institutions, as well as a coordinated effort between different levels of government to ensure the strengthening of governance and control practices in local contexts on the one hand, and the opportunity to refine the alignment of international standards, regulatory reforms, and planning tools on the other. This research may be of potential interest to the literature due to the limited availability of studies that have focused on this issue, shifting the focus from regulatory designs to the actual dynamics of adoption, providing evidence on the conditions that favor and hinder change. In this sense, the research aims to outline useful recommendations for policymakers on the management of accounting transition phases, highlighting the areas that need greater support, namely staff training, information systems, and coordination.