Authors:
Citra Dewi
;
Prima Aprilyani Rambe
;
Iskandar Muda
and
Syafruddin Ginting
Affiliation:
University of North Sumatra, Indonesia
Keyword(s):
Accrual Accounting, Accrual Basis, Public Financial Management, Local Government
Abstract:
Accounting has a broader potential for the government, so the failure of accounting practices of a country or region is blamed as a cause of corruption and worsening financial, socio-economic and political conditions. Another phenomenon, financial statements as outputs of accounting practices have not been used by stakeholders. The research answers the question of the criteria that financial statements can be used by stakeholders, can accounting reduce corruption and what basis is ideal for use in government budgeting and accounting? The research also illustrates the phenomenon of accrual basis implementation in the last ten years in several countries. Researchers used the library analysis method for the last ten years, namely 2008 to 2018. Conclusions and results of the research found that the application of a combination of cash basis and accrual basis managed to meet the criteria so that it could be used by stakeholders, accrual accounting improved administration, especially those
related to fixed asset management. receivables and liabilities. Accounting has not been able to detect corruption even through an accounting approach, accounting can be a tool for corruption. In addition to the accounting system, the culture and integrity of accounting actors in budgeting are also factors that influence corruption behaviour. For governance, researchers should recommend a combination of cash and accrual basis in budgeting and accounting.
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