Potential Challenges and Implications of Implementing Accrual Accounting in the Public Sector in Sri Lanka
ALM Najimudeen
Discipline: business and management
Abstract:
This study investigated revenue recognition, expense recording, asset
presentation, and liability reporting in accrual-basis accounting in
financial statements as it examined the difficulties of implementing
accrual accounting in the public sector in Sri Lanka. Questionnaires
were used to gather data, and ordinal regression analysis was used to
examine participant replies. The findings showed a strong association between potential challenges and a number of independent variables, such as accountants' proficiency with accrual accounting, nonaccountants understanding of financial statements, non-finance managers' support, regulatory and legal barriers, and the availability of
qualified personnel. The results emphasized the difficulties in making
the switch to accrual accounting in the public sector and offer guidance for practitioners and policymakers who want to solve these issues.
References:
- Adela D, Cristina S N, Crina F (2011), The Im-pact of Accrual Accounting on Public
- Sector Management, An Exploratory Study for Romania, Transylvanian Re-view of Administrative Sciences, No. 32 E/2011, pp. 74-97.
- Ali Rkein (2008), Accrual Accounting and Pub-lic Sector Reform: Northern Territory Experience. PHD Research.
- AMBE Alfred Nobe (2017), Reforming public sector accounting and financial systems: A critique of Cameroon and Nigeria, In-ternational Journal of Accounting & Business Finance 87 Issue I – 2015, pp. 86-101.
- Arnaboldi, M., Lapsley, I (2009). ‘On the Im-plementation of Accrual Accounting: A Study of Conflict , Ambiguity’, European Accounting Review, vol. 18, no. 4, pp. 809-836.
- Carnegie, G. D., West, B.P (2003), ‘How Well Does Accrual Accounting Fit the Public Sector?’, Australian Journal of Public Ad-ministration, vol. 62, no. 2, pp. 83-86.
- Chan, J.L (2003), Government Accounting: An Assessment of Theory, Purposes and Standards, Public Money and Manage-ment, vol. 23, no. 1, pp. 13-20.
- Cohen, S., Kaimenakis, N., Venieris, G (2009), Reaping the Benefits of Two Worlds: An Exploratory Study of the Cash and the Accrual Accounting Information Roles in Local Governments, [Online] available at http://ssrn.com/abstract=1441896.
- Connoly, C., Hyndman, N (2006), The Actual Implementation of Accrual Accounting, Accounting, Auditing & Accountability Journal, vol. 19, no. 2, pp. 272- 290.
- Diamond, J., ‘Performance Budgeting (2002) – Is Accrual Accounting Required?’, Inter-national Monetary Fund, Working Paper, no. 02/240, 2002, [Online] available at http://www.imf.org/external/pubs/cat/longres.cfm?sk=16197.0.
- Ministry of Finance, Sri Lanka, CA Sri Lanka, Manual of Sri Lanka Public Sector Ac-counting Standard, 2009,2012,2018 and 2019, available online, https://www.casrilanka.com/casl/
- P.W. Senarath Yapa, Sarath Ukwatte (2014), The New Public Financial Management (NPFM) and Accrual Accounting in Sri Lanka.
- Rozaidy M, Siti N.A.K, Rasid M., Raman N (2017) Accrual Accounting in Public Sec-tors: Possible Contextual and Application Gaps for Future Research Agenda, Asian Journal of Finance & Accounting ISSN 1946-052X 2017, Vol. 9, No. 1
- Vickeswaran A. (2019), Perception of Gov-ernment Accountants of Current Public Sector Accounting Practiced and Imple-mentation of Public Sector Accounting in the Sri Lanka, Asian Journal of Finance & Accounting ISSN 1946-0252x 2019, Vol 11, No.1.
- Zarah P (2016), Innovation of Public Sector Financial Management: Towards Accrual Accounting, Innovation in Regional Pub-lic Service for Sustainability (ICPM 2016)
Philippine E-Journals
