Title of article :
Application of accrual accounting in Iran municipalities
Author/Authors :
Eamaeilzade Maghariee، Ali نويسنده Assist. Prof. & Faculty Member, Department of Accounting, School of Accounting and Management, Islamshahr Branch, Islamic Azad University (IAU), Iran , , Houshmand Neghabi، Zahra نويسنده , , Abdi، Rahele نويسنده cM.Sc. Student, Department of Accounting, School of Management and Accounting, Islamshahr Branch, Islamic Azad University (IAU), Iran ,
Issue Information :
ماهنامه با شماره پیاپی 39 سال 2015
Pages :
4
From page :
257
To page :
260
Abstract :
Accrual accounting is a technique for recognizing expenses when incurred and revenue when earned rather than when payment is made or received. In the cash method of accounting, on the other hand, cash receipts and disbursements technique of accounting or cash accounting records revenue when cash is earned, and expenses when they are paid in cash. In this paper, we present an empirical investigation to study the effect of implementing accrual accounting in municipality of Amol, Iran. The survey investigates whether or not financial reporting based on accrual accounting compared with a cash basis could provide a better method for promoting accountability. Using, regression analysis, the study compares the performance of accrual accounting versus cash accounting and the results have indicated that accrual accounting could improve the performance of accounting in municipality system. In addition, the study has examined whether or not converting cash to accrual accounting basis in municipalities could improve qualitative characteristics of accounting information. To examine this hypothesis, the study has designed a questionnaire in Likert scale to measure the quality of information and, using some statistical tests, the survey has concluded accrual accounting indeed provided better quality characteristics information.
Journal title :
Management Science Letters
Serial Year :
2015
Journal title :
Management Science Letters
Record number :
1886260
Link To Document :
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