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The Influencing Factors On The Level Of Accrual Accounting Adoption: A Conceptual Approach

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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)

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

Suggested Citation

  • 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.
    • Handle: RePEc:rau:journl:v:13:y:2018:i:2:p:30-36
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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SU18/REBE-SU18-A4.pdf
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    References listed on IDEAS

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    Cited by:

    1. Khoirul Aswar & Lovina Eka Putri & Ermawati, 2020. "The Effect of Organizational Factors on Performance Measurement in Indonesia Local Governments," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 122-131.
    2. Oktavia Nurlianto & khoirul aswar, 2020. "A Conceptual Framework on the Financial Statement Disclosure in Indonesia Local Government," Journal of Economics and Behavioral Studies, AMH International, vol. 12(3), pages 65-69.
    3. 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.
    4. 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.
    5. 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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