International Journal of Business and Management Study
Author(s) : TOHIRIN, AK.
This study was conducted to identify the problem of implementing government accrual accounting system in the first year. The case study was conducted in Indonesia when Indonesia prepared government financial reporting based on accrual accounting in 2015. Indonesia government changed the accounting system and financial reporting from the old system, cash toward accrual basis, to the new system, accrual accounting basis, in 2015 to comply the regulation. Implementing a new system in government financial reporting system created a big problem. Indonesia was a country that had some accounting units which were about 24.000 accounting units. It was thought that the problem could be solved by designing good government policies and good action. Government stakeholder doubted whether Indonesia succeeded in implementing accrual basis for government financial reporting in the first year. Some experts predicted that the quality of government accounting became worse. The opinion of financial reporting dropped to bad condition with some reasons. This study uses purposive sampling in which the sampling method uses specific criteria. This study aims to assess the problem of Indonesian government when implementing the accrual accounting systems and developing the alternatives to overcome the problem. The results of the study show that there are two conclusions. First, Indonesian government delayed implementing the accrual basis in financial reporting for 8 years with some reasons and conditions. Second, in one hand, Indonesia had some problems to comply with regulation in accounting system and financial reporting, like human resources, regulation, information technology, risks in business process change. On the other hand, Indonesia succeeded in implementing government accrual accounting in the first year in 2015.