Reaping the benefits of two worlds: An explanatory study of the cash and the accrual accounting information roles in local governments
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Uploaded by Sotirios Karatzimas
Uploaded date: July 12, 2014
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Publication date
July 01, 2013
Paper language
Abstract
Purpose – The purpose of this paper is to explore the coexistence of cash accounting and accrual accounting systems through an investigation of the roles they fulfill in Greek municipalities.
Design/methodology/approach – The survey results are based on the answers of the financial department principals of 106 municipalities to a structured questionnaire. The roles of accounting investigated are informed by Ansari and Euske's model.
Findings – It appears that cash accounting information prevails in the major function of decision making, with accrual accounting information playing a secondary role. Larger municipalities seem to use accounting data more extensively than smaller ones for negotiations, both in accrual and cash terms.
Originality/value – The study sheds light on the actual use of accrual accounting information in a public sector setting, where customarily decisions were based on cash accounting considerations.
Design/methodology/approach – The survey results are based on the answers of the financial department principals of 106 municipalities to a structured questionnaire. The roles of accounting investigated are informed by Ansari and Euske's model.
Findings – It appears that cash accounting information prevails in the major function of decision making, with accrual accounting information playing a secondary role. Larger municipalities seem to use accounting data more extensively than smaller ones for negotiations, both in accrual and cash terms.
Originality/value – The study sheds light on the actual use of accrual accounting information in a public sector setting, where customarily decisions were based on cash accounting considerations.
Preferred Citation
Cohen, S., Kaimenakis, N., & Venieris, G. (2013). Reaping the benefits of two worlds: An explanatory study of the cash and the accrual accounting information roles in local governments. Journal of Applied Accounting Research, 14(2), 165-179.
Keywords
Accounting; Accrual accounting; Cash accounting; Greece; Local government; Public sector; Roles of accounting
Email
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Category
Financial accounting
Type of Paper
Published paper
