Accrual accounting and ways forward for financial reporting in the government of Thailand
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2017
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2560
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eng
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162 leaves
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b201176
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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National Institute of Development Administration. Library and Information Center
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Oraphan Nakmahachalasint (2017). Accrual accounting and ways forward for financial reporting in the government of Thailand. Retrieved from: https://repository.nida.ac.th/handle/662723737/5872.
Title
Accrual accounting and ways forward for financial reporting in the government of Thailand
Alternative Title(s)
Accrual accounting and ways forward for financial reporting in the government of Thailand
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Abstract
The adoption and implementation of accrual accounting in Thailand was
influenced by the 1997 financial crisis in Asia and was endorsed by international
organizations such as the International Monetary Fund and the World Bank. As
argued by most researchers in public sector accounting that accrual accounting is
superior to cash basis of accounting, accrual accounting information and financial
statements would enhance the transparency and accountability of the government.
This research aims to explore the transition barriers of the accrual accounting implementation and to evaluate the outcomes of the accrual accounting implementation in the central government departments of Thailand. The sample consists of 139 central departmental departments. The research participants are public financial managers and accountants of Thailand’s central governmental agencies. The improvements of financial transparency and accountability after the adoption are concluded from the interpretation of the practitioners’ points of view using the quantitative research method, the structural equation modelling.
Significant transition barriers that deteriorate the outcomes of the accrual accounting implementation are the lack of incentive, the lack of supportive management culture, the lack of accrual accounting manuals, and the difficulty of accrual information that cannot be easily understood by users or public managers. The findings of transition barriers that influence the implementation of accrual accounting would help the late adopters in planning their transition processes.
The investigation of the relationships between the implementation of accrual accounting and its outcomes. The findings show that the implementation of accrual accounting has promoted the financial transparency and accountability of the departments. The completeness of reporting entries, completeness of financial information relating to assets, liabilities, and commitments, the faithfulness, verifiability, and relevance of financial information, are financial transparency characteristics that have been achieved. Moreover, the perceived accountability of the departments has been enhanced by providing sufficient financial information for the assessment of the accountability of the departments; for the achievement of objectives, the ability to finance their activities, liabilities and commitments, the compliance with law; the effectiveness of resources used, and the financial results in long term.
The public sector accounting regulator should issue more accrual accounting manuals; the guidelines for the preparation of cash flow statement and financial forecasts; and the disclosure of budget information accompanying with the financial statements. Accrual financial information should be tied with the incentive system. In addition, the understanding of accrual information among users and managers should be promoted to enhance the usefulness of accrual financial information.
This research aims to explore the transition barriers of the accrual accounting implementation and to evaluate the outcomes of the accrual accounting implementation in the central government departments of Thailand. The sample consists of 139 central departmental departments. The research participants are public financial managers and accountants of Thailand’s central governmental agencies. The improvements of financial transparency and accountability after the adoption are concluded from the interpretation of the practitioners’ points of view using the quantitative research method, the structural equation modelling.
Significant transition barriers that deteriorate the outcomes of the accrual accounting implementation are the lack of incentive, the lack of supportive management culture, the lack of accrual accounting manuals, and the difficulty of accrual information that cannot be easily understood by users or public managers. The findings of transition barriers that influence the implementation of accrual accounting would help the late adopters in planning their transition processes.
The investigation of the relationships between the implementation of accrual accounting and its outcomes. The findings show that the implementation of accrual accounting has promoted the financial transparency and accountability of the departments. The completeness of reporting entries, completeness of financial information relating to assets, liabilities, and commitments, the faithfulness, verifiability, and relevance of financial information, are financial transparency characteristics that have been achieved. Moreover, the perceived accountability of the departments has been enhanced by providing sufficient financial information for the assessment of the accountability of the departments; for the achievement of objectives, the ability to finance their activities, liabilities and commitments, the compliance with law; the effectiveness of resources used, and the financial results in long term.
The public sector accounting regulator should issue more accrual accounting manuals; the guidelines for the preparation of cash flow statement and financial forecasts; and the disclosure of budget information accompanying with the financial statements. Accrual financial information should be tied with the incentive system. In addition, the understanding of accrual information among users and managers should be promoted to enhance the usefulness of accrual financial information.
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Thesis (Ph.D. (Business Administration))--National Institute of Development Administration, 2017