MIND YOUR ACCRUALS: PERCEIVED USEFULNESS OF FINANCIAL INFORMATION IN THE AUSTRALIAN PUBLIC SECTOR UNDER DIFFERENT ACCOUNTING SYSTEMS

R. Kober, J. Lee, Juliana Ng

Research output: Contribution to journalArticlepeer-review

62 Citations (Scopus)

Abstract

This study examines the usefulness of three accounting systems (cash, Generally Accepted Accounting Principles (GAAP) accrual, and Government Finance Statistics (GFS) accrual) for public sector decision-making. From a survey of internal users, external users, and preparers in Australia, we find that GAAP accrual information is perceived to be relatively more useful and understandable than the other two systems for most decisions examined. The relatively higher ratings for GAAP accrual information differ from earlier studies and may reflect an experience or familiarity effect whereby perceptions of usefulness are enhanced because respondents have become more used to the system. This effect might also explain the lower ratings for GFS accrual. © 2010 Blackwell Publishing Ltd
Original languageEnglish
Pages (from-to)267-298
JournalFinancial Accountability & Management
Volume26
Issue number3
DOIs
Publication statusPublished - 2010

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