Transition barriers of accrual accounting: A unique case study in newly created public establishment
Year: 2025
Type: article
Abstract: This research delves into the challenges impeding the implementation of accrual accounting in newly established public sector organizations. In an era marked by heightened demands for transparency and accountability, these organizations are increasingly encouraged to adopt accrual accounting as a tool to enhance financial management and decision-making. Despite its potential benefits, such as improved resource allocation and a more accurate representation of financial positions, the adoption process remains fraught with difficulties within this specific institutional framework. Through an in-depth case study, the findings identify two primary categories of obstacles: those related to human resources and those tied to the information system. Human resource-related challenges include a shortage of personnel, insufficient training, resistance to change, and task overload among staff. Information system-related barriers involve a lack of financial resources, inadequate preliminary studies, and insufficient support strategies. This study highlights the importance of adopting a holistic and strategic approach to overcome these challenges. If newly established organizations are unable to invest in comprehensive training programs to enhance employees' skills and understanding of accrual accounting principles or adapt information systems to meet the specific requirements of accrual accounting practices, outsourcing is considered an effective solution to address the difficulties of implementing accrual accounting, particularly for newly created entities. By tackling these challenges head-on, public sector organizations can facilitate a smoother transition to accrual accounting, ultimately achieving greater transparency, efficiency, and accountability in their financial management processes. This research underscores the critical need for coordination between human resource management and technological adaptation to ensure the successful implementation of this transformative accounting framework.
Authors: Zainab Heyame, Said Najeh, Khalid Oulad Seghir, Mohamed Izenzal
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7084586688