Negative effects of the adoption of accrual accounting in the public sector

A systematic literature review and future prospects

Datos Bibliográficos

ID20201849
AutoresElisa Bonollo (0000-0002-6831-3930, University of Genoa, autor de correspondencia)
Año2023
Volumen35
Número6
Páginas1-27
Fecha de publicación2023-12-18
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaJournal of Public Budgeting Accounting & Financial Management (JOURNAL)
Identificadores de la revistaISSN: 1096-3367 • E-ISSN: 1945-1814
EditorialEmerald (PUBLISHER)
DOI10.1108/jpbafm-06-2022-0097
OpenAlexW4313404223
IdiomaEN
Citas recibidas7
Referencias citadas130

Purpose Since the 1980s, governments worldwide have been implementing the move from cash to accrual accounting. Scholars initially considered the appropriateness of this accounting reform to be self-evident, but later they have expressed critical views. This paper systematises the existing literature intending to reflect on the adverse effects of adopting accrual accounting in the public sector and identify implications for future research. Design/methodology/approach The present study builds on a systematic literature review of 106 academic articles published between 1980 and 2021. It is based on the “preferred reporting items for systematic reviews and meta-analyses” (PRISMA) method. Synthesising research through a transparent, rigorous and replicable process makes it possible to identify and discuss the adverse effects of adopting public sector accrual accounting. Findings Significant issues are linked to organisational impacts and accountability. Resistance to change is the main negative consequence and is more likely in countries that have chosen to adopt accrual accounting without maintaining cash accounting. The new accounting rules make accounting information more complex and arbitrary for citizens and politicians. How these criticalities should be addressed deserves further investigation. Originality/value This paper offers a comprehensive literature review on the drawbacks of adopting accrual accounting in the public sector. It could provide a general lesson to be applied to policymakers of other jurisdictions currently considering this transition to prevent the adverse effects and act proactively

Accountability · Accounting information system · Accounting management · Accounting research · Accounting standard · Accrual · Business · Economics · Financial accounting · Management accounting · Originality · Political science · Positive accounting · Public sector · Qualitative research · Social science · Sociology · Auditing, Earnings Management, Governance · Computer Science · Public Policy and Administration Research · Taxation and Compliance Studies · Accounting