PERCEPTION OF THE GOVERNMENT OFFICERS ON THE ADOPTION OF CASH TOWARDS ACCRUAL ACCOUNTING IN INDONESIA (CASE STUDY IN PADANG CITY).
FAKT'T-TAS EKONOMI
UNIVI]RSITAS ANDAT,AS
PERCEPT1ON OF TI IE GOVERNMENT OFFICERS ON TIIE ADO?TION OF CASH
TOWARDS ACCRUAL ACCOLN'I]NG IN INDONESL{
(CASE STI'DY IN PADANC CIT\1
h prrrirl furrnn.nt of r[c r.quinmerr for
Und.rgmdui. d.sr€c iD eorodiB
SuhDitred
MERRY N4{RDA JULITA
Acsuntiq tep..tm€nb Studcrt
PADANC
of Sl PrcEnb
ABSTR-ACT
'n'. aihs of this
@ to elicn
rhe
'ts@h
lo lhe cuMt govmnentd .@uting od th.n
vi*
of
sov€lmrl
ofii4
Etded
of
ftU a@nd @uting jn lodonesi. fte desiE ro nove to tuli a@ol a@Biing
etually nd ben @nsideEd seriously- lt is pmvm by th€ enslene of Pdahlfu
Pddinl'n 242005, tru 17 2003. od Pmmdagd 59l 2007 lhal suppon th€
Elofrs in lrdon6i{t pubtic smlor mouo!'ng, This lMh us quesriomsiE s
d insEunent lo obt in irlomarion fron leal gove'mdr otre6 Bio have
EspoNibility to execnte @unting rcriviry ed get involv€ in prelaine
govemqtt fMdd Epon relad ro rheir pmepdon to*lds tn€ eIMr
Covmd€ntal &@utins ed lhe adopnon of nrI €ccd.l @d.tihg in Indon6ia.
Tn. Esults indi€te tna th€ switch
Indorsia to
e sde
supporr the
b ftll
Eslonse Es&dins tn€ adoption
'lmd
amuring n*ds ro b€ done in
imtovement of trtrspaency and mourabitiry. But, th@
l€cnnical pDblems that nusl be @sideEd duing $e inpl@enrarjo.
of
tull @flal ac@untine in Indonesi!.
Xerwd
l"doresia,
b6x,
Cash
?tbli
tectq oobtinE rclom, c@metual
tNat6
accouhtins, Accrul @@untiha
.tu,,ti,a
Duine thc
intJoducrion
lst
dccadc the public
olsignific r rcfoms
setor
hs
been
afleled by
in the public sector accountine. llese
de .eeded to ennsce public sclor cfficiency- whicb land tnom
6
the
€fofts
lhe nain
poim olNPM (New Public Muasenent) conepl. in ordcr to avoid &e scucity
EsuEes in public seclor (vjn.& ed N6i.2008) Si.ce the
srviccs is ioldjably AMter thm
the
d
foi Dublic
resolms.
one ol the public seclor Eloms thn
inplcmenarion is lbe adoption of acctu
l
hd beone ontrovesial in irs
accourinA as
fin&cial sllrencnrs Aclully. the 6e of thc cah
$s
den
of
seen as a ercar divide berween the public
d
bais in pEprinp
accruat bdis dt &countins
Md privatc scror virh the Dublic
sstor pEclicing caih ac@untina. ad thc privaie ectoi dsing uruat nethods In
tbe privale salor.
it h assmcd
rhat th€r€ is a srons
u$
nc€d for dechion-
rclerdt inlomation whicn rovides a p€rialic nesm oae enlity.s finmcial
perlomdce (pofit
tlk cd
dd
loss ecounl)
only be etisfied by lbe use
ad nnbcial
positi.n (ialscc sheer)
ofaeuls a.coblins
Althoush nosr aovermcnr seryices
m
(Salch md pendlcbu4r.
nol evalMled in tems ot.!rctls
e@ed or losscs incuned ad rbeE h no equivalcnt to tbe pnvare s4ioas
inlolmtion lor invcstmenl decisio. purroses.
accountine in
solelmenl eftnics he
b€en
dd
the
.ed
for
encomsm€hr lo aljopt acctual
onsidq€d serioBly rt is Drovcn b!
a
et
of standdds for Dublic sector
e@unti4 dnl h6 beei
Amomldls) wjth
Fedemtion of
Dcvelopdent Bants
eovement
is
ad
tu
usd
d
M
1997:
dev€lopcd by IFAC
(l
oi IMF. the World Be!.
emrionrl
rhe Asi
more ammte ne4uEnent md
ud pedorm
Rye.
reportins on thc
inplemenlalion of accru.t accountins in
cd piolide
a l@l lo rrcnole
adninisrraton
tus
cial posnion
dd tnnspmncy (?,llor
b€
olh€ls.
expe.ted
comunicatior of
the suppon
imci.i
1993;
ed
ce
!ff
&d imprcye accomtability
der
incHsd ciiciency md
od eE4tive noascnmt ol
borh asets
tloet,2005). Il also cm
cfectiveness of pubtic
dd
re$urces. which in
contribure to improvcd rErfomece.
In fact. whicnev€r baiis is 6ed for prpajns the
Aovements
ad
fimcilt uouts of
local eovetuenls. there is littte cvidence rhat these hishty
agsresated accoMting stalem€nts
m elully u*d
by
sy of $e Dorential
€rlcmal
usr coups lor domlabiliry dd perfomece
even lor
my purpos. Jones (1992: 262) stales. sonewhat tEnchdtly. 1nd .the
evalualion purloFs, or
publimlion ol fuucial stalmenr is not in lhe pubrjc inleEsl6ecaw thc pubtic
hN no i.teEst'. 'n1is lheme is
dcvelop€d tunher
in ihe co.text ot
t@at
gov€mnoni acmuntine by Jones md Pehdtebury (2000). wno dsue rnal tne only
pupose of
e6
lcal authoity aeouls
that pmDer
tndlial
is lo povide
e
imrticit
dsufue
acoulins is in place This does not med
to encmal
lhar the publishcd
accobls ol Eolmnenis de nol requiEd. t1]en pubticarion
essnrial part ol @outabilny b€qse lbey provide
findcial tEn@tioN of thc p.riod.
a
no
audired n@.d of tne
CHAPTER V
CONCLUSION
This Es@(h
offie6 towrds
towaids
h
@nducled ro equire th€ p€rceprion
the ldoption of
of l6al
govemmenj
full a{rud mountins in indonsia &d their views
de existina sovemnental uounring ed Eportins pBctics. This is m
exploElive Esach that uses primary dala
oblaine! rhrough the disrriburion
books. nagdjnes.
dd
econdary data sherebt drb were
olquenionnoie
d by
obse ing titeBlure
Mnonic jounah, nsspopeu, md dicles fron
such
s
websites
Thh €seNh esulls rhal the majonty of l@al sovem€nt omce6 in Poddg
city (about 84,1% of r€sponddo pierercd lo ue mtual accounlins 6ther thm
conlinuing
to
use
cdh brs€d aftounting for eording govemme naecrion,
Ahhoueh in lndonesia thc usc of bodifie,l c$h
eou.lins h6 ben
a6!e to
met th€
mainobjecivesorfin cial Eport.
Most of lhen
govenment
ce
aaE
dlat lhe adoplion of aorud acounlins
providc i.fomdion that cm give
sy
vitni. Indon6io
positive ontnbution to the
qu,lity of deision. Bur baed on the exp€dences of other counEies rhat hav.
employed a@rual accountin& respondenh
ale
reatize that th€re
&e &chnicat
problens during $e inplemc.tation ol full acctual uoubring in rndonesia like
problens in
identitiq all
nx€d ssels ownol by govehhen
ddilional Bourceq nMpowq od tundi"g n€ded
units d tie
for 4selJ evatuorion.
Iack or
REFf,Rf,NCES
Anonymous. 2007. 'lnd.nesi: : Developne.r ln tublic Seror
Econ d! lali.t t po .
co\em{ce" )pEC
Anncsi-Pessi.4 Eugenio md llema Steccolinl. 2007. ,,EfGcLs Ot ludecldy And
Accrual Accounting coexktencc
cowmhents Fim.ial,l.countahilit
:
Elidence
Foh ltrti
Local
Anrl Munasehent, 23(2).
Analoui, Fa&ad. E$entials OfPublic S{t r Refom i A Case Study Ot Coatr...
vailable ar SSRN: hiprf:!r r,,!!r ab$mcr=1282009.
Bon!.s, Cikri.a
ln
AR
2009. "ABumcnr For lntrcducing Accrual Baed Accounring
The Public Scciol. MPM taper No 78j3t. AwiJabJe Oniine al l
l!t!i irrluhrfimr.f.h.i J.' $Llll
BPK Rl.2009.
kponn H$il Pemeriksad Arls tKp Kora pldmg
Anlaam2003 Source : htp://www.bpk.ao.id/doc/hapsenv
dd
Unruk Ta,\un
cuthric. I992..Chmges In pubtic seci., Accounliig j A
Review Of Rcccnt ,\lteharive Accounring Rcsemh.,. ,,1..rr,rr,g ,lrdtirg
,1nd A..o ntability Jat al.yo1.5No.2.
Broadbenl. Jme
James
Ctulin, Tyrone M.. 2001. .Accrud Aeounlina ,^nd Finlncial Reponin8 ln pubtic
s{ror : Relrming The Debatc,. Ausllalia : Macqueie GBduare schmt ol
Cariin, Tyrone M..2005. Debrring The lmpacr Of Accnral Accouniing And
Reponing ln The Pubtic
Sern'. t;i .nciot A@udohjtj,
2l(3).
nnd ManaAenent,
Cmegie, Carry D. dd Rrid P. W..2003. .How Welt Des Accruat Acc.unrino
lhe Pu.l. \e.rcr. . 4,v.,rrr /,Lr laJ pLhh. Adn,4.natiaa
Fir
Chmpoux, Mirk. 2006. ..Accruat Accounring ln Nes
Ha ad Ltu
Cohen,
Sthool Fe.Jetul Brtjqet
Zc.lhd And A6tEtia-,.
p.tiq ,tehim.
Ssdn e! al.. 2007. .Assessing h As KeJ Success Factor For Accruat
Acouming lmplcndlalion tn Creel Municipalirjes,..,q,z,.jdl
Ac@uhtab il itr
A
tul Manase he nt, 23(t).
UNIVI]RSITAS ANDAT,AS
PERCEPT1ON OF TI IE GOVERNMENT OFFICERS ON TIIE ADO?TION OF CASH
TOWARDS ACCRUAL ACCOLN'I]NG IN INDONESL{
(CASE STI'DY IN PADANC CIT\1
h prrrirl furrnn.nt of r[c r.quinmerr for
Und.rgmdui. d.sr€c iD eorodiB
SuhDitred
MERRY N4{RDA JULITA
Acsuntiq tep..tm€nb Studcrt
PADANC
of Sl PrcEnb
ABSTR-ACT
'n'. aihs of this
@ to elicn
rhe
'ts@h
lo lhe cuMt govmnentd .@uting od th.n
vi*
of
sov€lmrl
ofii4
Etded
of
ftU a@nd @uting jn lodonesi. fte desiE ro nove to tuli a@ol a@Biing
etually nd ben @nsideEd seriously- lt is pmvm by th€ enslene of Pdahlfu
Pddinl'n 242005, tru 17 2003. od Pmmdagd 59l 2007 lhal suppon th€
Elofrs in lrdon6i{t pubtic smlor mouo!'ng, This lMh us quesriomsiE s
d insEunent lo obt in irlomarion fron leal gove'mdr otre6 Bio have
EspoNibility to execnte @unting rcriviry ed get involv€ in prelaine
govemqtt fMdd Epon relad ro rheir pmepdon to*lds tn€ eIMr
Covmd€ntal &@utins ed lhe adopnon of nrI €ccd.l @d.tihg in Indon6ia.
Tn. Esults indi€te tna th€ switch
Indorsia to
e sde
supporr the
b ftll
Eslonse Es&dins tn€ adoption
'lmd
amuring n*ds ro b€ done in
imtovement of trtrspaency and mourabitiry. But, th@
l€cnnical pDblems that nusl be @sideEd duing $e inpl@enrarjo.
of
tull @flal ac@untine in Indonesi!.
Xerwd
l"doresia,
b6x,
Cash
?tbli
tectq oobtinE rclom, c@metual
tNat6
accouhtins, Accrul @@untiha
.tu,,ti,a
Duine thc
intJoducrion
lst
dccadc the public
olsignific r rcfoms
setor
hs
been
afleled by
in the public sector accountine. llese
de .eeded to ennsce public sclor cfficiency- whicb land tnom
6
the
€fofts
lhe nain
poim olNPM (New Public Muasenent) conepl. in ordcr to avoid &e scucity
EsuEes in public seclor (vjn.& ed N6i.2008) Si.ce the
srviccs is ioldjably AMter thm
the
d
foi Dublic
resolms.
one ol the public seclor Eloms thn
inplcmenarion is lbe adoption of acctu
l
hd beone ontrovesial in irs
accourinA as
fin&cial sllrencnrs Aclully. the 6e of thc cah
$s
den
of
seen as a ercar divide berween the public
d
bais in pEprinp
accruat bdis dt &countins
Md privatc scror virh the Dublic
sstor pEclicing caih ac@untina. ad thc privaie ectoi dsing uruat nethods In
tbe privale salor.
it h assmcd
rhat th€r€ is a srons
u$
nc€d for dechion-
rclerdt inlomation whicn rovides a p€rialic nesm oae enlity.s finmcial
perlomdce (pofit
tlk cd
dd
loss ecounl)
only be etisfied by lbe use
ad nnbcial
positi.n (ialscc sheer)
ofaeuls a.coblins
Althoush nosr aovermcnr seryices
m
(Salch md pendlcbu4r.
nol evalMled in tems ot.!rctls
e@ed or losscs incuned ad rbeE h no equivalcnt to tbe pnvare s4ioas
inlolmtion lor invcstmenl decisio. purroses.
accountine in
solelmenl eftnics he
b€en
dd
the
.ed
for
encomsm€hr lo aljopt acctual
onsidq€d serioBly rt is Drovcn b!
a
et
of standdds for Dublic sector
e@unti4 dnl h6 beei
Amomldls) wjth
Fedemtion of
Dcvelopdent Bants
eovement
is
ad
tu
usd
d
M
1997:
dev€lopcd by IFAC
(l
oi IMF. the World Be!.
emrionrl
rhe Asi
more ammte ne4uEnent md
ud pedorm
Rye.
reportins on thc
inplemenlalion of accru.t accountins in
cd piolide
a l@l lo rrcnole
adninisrraton
tus
cial posnion
dd tnnspmncy (?,llor
b€
olh€ls.
expe.ted
comunicatior of
the suppon
imci.i
1993;
ed
ce
!ff
&d imprcye accomtability
der
incHsd ciiciency md
od eE4tive noascnmt ol
borh asets
tloet,2005). Il also cm
cfectiveness of pubtic
dd
re$urces. which in
contribure to improvcd rErfomece.
In fact. whicnev€r baiis is 6ed for prpajns the
Aovements
ad
fimcilt uouts of
local eovetuenls. there is littte cvidence rhat these hishty
agsresated accoMting stalem€nts
m elully u*d
by
sy of $e Dorential
€rlcmal
usr coups lor domlabiliry dd perfomece
even lor
my purpos. Jones (1992: 262) stales. sonewhat tEnchdtly. 1nd .the
evalualion purloFs, or
publimlion ol fuucial stalmenr is not in lhe pubrjc inleEsl6ecaw thc pubtic
hN no i.teEst'. 'n1is lheme is
dcvelop€d tunher
in ihe co.text ot
t@at
gov€mnoni acmuntine by Jones md Pehdtebury (2000). wno dsue rnal tne only
pupose of
e6
lcal authoity aeouls
that pmDer
tndlial
is lo povide
e
imrticit
dsufue
acoulins is in place This does not med
to encmal
lhar the publishcd
accobls ol Eolmnenis de nol requiEd. t1]en pubticarion
essnrial part ol @outabilny b€qse lbey provide
findcial tEn@tioN of thc p.riod.
a
no
audired n@.d of tne
CHAPTER V
CONCLUSION
This Es@(h
offie6 towrds
towaids
h
@nducled ro equire th€ p€rceprion
the ldoption of
of l6al
govemmenj
full a{rud mountins in indonsia &d their views
de existina sovemnental uounring ed Eportins pBctics. This is m
exploElive Esach that uses primary dala
oblaine! rhrough the disrriburion
books. nagdjnes.
dd
econdary data sherebt drb were
olquenionnoie
d by
obse ing titeBlure
Mnonic jounah, nsspopeu, md dicles fron
such
s
websites
Thh €seNh esulls rhal the majonty of l@al sovem€nt omce6 in Poddg
city (about 84,1% of r€sponddo pierercd lo ue mtual accounlins 6ther thm
conlinuing
to
use
cdh brs€d aftounting for eording govemme naecrion,
Ahhoueh in lndonesia thc usc of bodifie,l c$h
eou.lins h6 ben
a6!e to
met th€
mainobjecivesorfin cial Eport.
Most of lhen
govenment
ce
aaE
dlat lhe adoplion of aorud acounlins
providc i.fomdion that cm give
sy
vitni. Indon6io
positive ontnbution to the
qu,lity of deision. Bur baed on the exp€dences of other counEies rhat hav.
employed a@rual accountin& respondenh
ale
reatize that th€re
&e &chnicat
problens during $e inplemc.tation ol full acctual uoubring in rndonesia like
problens in
identitiq all
nx€d ssels ownol by govehhen
ddilional Bourceq nMpowq od tundi"g n€ded
units d tie
for 4selJ evatuorion.
Iack or
REFf,Rf,NCES
Anonymous. 2007. 'lnd.nesi: : Developne.r ln tublic Seror
Econ d! lali.t t po .
co\em{ce" )pEC
Anncsi-Pessi.4 Eugenio md llema Steccolinl. 2007. ,,EfGcLs Ot ludecldy And
Accrual Accounting coexktencc
cowmhents Fim.ial,l.countahilit
:
Elidence
Foh ltrti
Local
Anrl Munasehent, 23(2).
Analoui, Fa&ad. E$entials OfPublic S{t r Refom i A Case Study Ot Coatr...
vailable ar SSRN: hiprf:!r r,,!!r ab$mcr=1282009.
Bon!.s, Cikri.a
ln
AR
2009. "ABumcnr For lntrcducing Accrual Baed Accounring
The Public Scciol. MPM taper No 78j3t. AwiJabJe Oniine al l
l!t!i irrluhrfimr.f.h.i J.' $Llll
BPK Rl.2009.
kponn H$il Pemeriksad Arls tKp Kora pldmg
Anlaam2003 Source : htp://www.bpk.ao.id/doc/hapsenv
dd
Unruk Ta,\un
cuthric. I992..Chmges In pubtic seci., Accounliig j A
Review Of Rcccnt ,\lteharive Accounring Rcsemh.,. ,,1..rr,rr,g ,lrdtirg
,1nd A..o ntability Jat al.yo1.5No.2.
Broadbenl. Jme
James
Ctulin, Tyrone M.. 2001. .Accrud Aeounlina ,^nd Finlncial Reponin8 ln pubtic
s{ror : Relrming The Debatc,. Ausllalia : Macqueie GBduare schmt ol
Cariin, Tyrone M..2005. Debrring The lmpacr Of Accnral Accouniing And
Reponing ln The Pubtic
Sern'. t;i .nciot A@udohjtj,
2l(3).
nnd ManaAenent,
Cmegie, Carry D. dd Rrid P. W..2003. .How Welt Des Accruat Acc.unrino
lhe Pu.l. \e.rcr. . 4,v.,rrr /,Lr laJ pLhh. Adn,4.natiaa
Fir
Chmpoux, Mirk. 2006. ..Accruat Accounring ln Nes
Ha ad Ltu
Cohen,
Sthool Fe.Jetul Brtjqet
Zc.lhd And A6tEtia-,.
p.tiq ,tehim.
Ssdn e! al.. 2007. .Assessing h As KeJ Success Factor For Accruat
Acouming lmplcndlalion tn Creel Municipalirjes,..,q,z,.jdl
Ac@uhtab il itr
A
tul Manase he nt, 23(t).