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COMBINING CONTINGENCY MODEL AND SOFT SYSTEM METHODOLOGY TO RECONSTRUCT INDONESIA’S INTERGOVERNMENTAL TRANSFER SYSTEM IN ORDER TO IMPLEMENT ACCRUAL BASED ACCOUNTING
Last modified: 2017-07-12
Abstract
This research aims to reconstruct Indonesia’s intergovernmental transfer system in order to implement accrual base. The study identified problematical situation in that system using Contingency Model that consists of four moduls, those are stimuli, social structural variables, structural varibles of the politico-administrative system, and implementation barriers. Implementation of accrual base in intergovernmental transfer system is stimulated by the setting of governmental accounting standards which affects expectation of users of information and behaviour of producers of information. Those expectation and behaviour are also affected by the basic attitudes of users and producers of information. Basic attitudes of users of information are affected by political culture of budgeting that will raise the need of accrual based information. That expectation will encourage implementation of accrual base by producers of information. Basic attitudes of producers of information are affected by the number of accountant. Furthermore, implementation of accrual base faces implementation barriers, such as organizational charateristics, qualifications of accountans, and size of jurisdiction. This research gives some recommendation actions for improvement using Soft Systems Methodology, which steps are: reformulating the allocation system, effectiveness enhancement of data exchange between technical and accounting units, and quality enhancement of intergovernmental transfer’s reporting.
Keywords
accrual base; Contingency Model; intergovernmental transfer; Soft Systems Methodology
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