Public interest and accrual accounting: are they aligned?

Abstract

Purpose

The purpose of this paper is to evaluate the merits of accrual-based accounting for the public in an Indonesian local government. It gives insights into the connection between the new practices and responses from government apparatus.

Design/methodology/approach

The paper applies genetic structuralism from Pierre Bourdieu to study the interrelation of habitus, field and capital in the accrual accounting implementation.

Findings

The result indicates a symbolic dominance of central government in the implementation of accrual-based accounting in the local government. Accrual accounting is considered to be a technique of government accountability which is independent from political and social situation.

Practical implications

The accrual accounting implementation preoccupies the government officials in their study of the preparation of financial statements while its utilization to increase the public welfare is still ignored.

Social implications

The government still prioritizes accountability and transparency for managerial and political purposes. Hence, the public interest is less superior compared with the formalities established between governments – the central government and local governments – and the regional legislator.

Originality/value

This paper contributes to the evaluation of the alignment of government policy with the public interest.

Citation

Sylvia, Sukoharsono, E.G., Prihatiningtias, Y.W. and Roekhuddin (2018), "Public interest and accrual accounting: are they aligned?", Journal of Accounting & Organizational Change, Vol. 14 No. 4, pp. 366-380. https://doi.org/10.1108/JAOC-10-2017-0094