The Usefulness of Accrual Information in Non-mandatory Environments: The Case of Japanese Local Government

Mari Kobayashi, Kiyoshi Yamamoto, Keiko Ishikawa

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)

Abstract

This study investigates how accrual accounting is used in a system in which it co-exists with cash accounting. It uses a survey methodology to explore the factors that influence the extent to which accrual information is useful for decision making, when used in a dual system. The results show that although accrual information was used less for budgeting, evaluation, asset management or debt management, officials found accrual information useful for performance management. Moreover, neither experience nor leadership significantly contributed to decision-making effectiveness. The study also found that the central government was the most influential promoter of accrual accounting in Japan. Of particular interest is the link between performance measurement and accrual information.

Original languageEnglish
Pages (from-to)153-161
Number of pages9
JournalAustralian Accounting Review
Volume26
Issue number2
DOIs
Publication statusPublished - 2016 Jun 1

ASJC Scopus subject areas

  • Accounting

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