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Implementation of Accrual-Based Government Accounting Standards in Indonesia: A Review of Organizational Factors

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  • Vania Talitha
  • Khoirul Aswar

Abstract

The purpose of this quantitative research is to test and prove empirically the effect of applying accrual-based accounting standards in Indonesia. The population in this study is the head of the financial subdivision and the financial staff of the regional government organizational unit in the DKI Jakarta province. The study used the random sampling method and managed to collect 84 respondents. Structural Equation Modeling (SEM) is used in this study as a data analysis test tool using Smart PLS software version 3.0. The results show that the quality of human resources and organizational commitment has a significant effect on the application of accrual-based accounting standards in Indonesia. Meanwhile, training and organization culture does not have a significant influence on the implementation of accrual-based accounting standards in Indonesia. The contribution for local government to improve their performance in reporting local government financial statements (LKPD) and assess their conformity with accounting standards in accordance with PP No. 71 of 2010 and ensure that the adoption of accrual-based accounting standards has been thoroughly established in local governments.

Suggested Citation

  • 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.
    • Handle: RePEc:rnd:arjebs:v:13:y:2021:i:5:p:22-31
    DOI: 10.22610/jebs.v13i5(J).3214
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    References listed on IDEAS

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    1. 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.
    2. Khoirul Aswar, 2019. "Factors on the Accrual Accounting Adoption: Empirical Evidence from Indonesia," 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. 12(3), pages 36-42, December.
    3. Pawan Adhikari & Levi Gårseth-Nesbakk, 2016. "Implementing public sector accruals in OECD member states: Major issues and challenges," Accounting Forum, Taylor & Francis Journals, vol. 40(2), pages 125-142, June.
    4. 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.
    5. 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.
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