Transition from Cash to Accruals Accounting in Iran Public Sector:The Required Time Period

Authors

1 PhD. in Science Management, Deputy Economy Minister for Financial Supervision and Treasury Affairs, Iran.

2 PhD. in Accounting, Head of Coordination and Integration Department for Accounts and Accounting Methods, Iran.

3 PhD. student in Accounting, Shiraz University, Iran.

Abstract

Since unrealistic timescales were identified as one of the reasons for accounting reform failures in the public sector, determining the appropriate timeframe for implementation of accrual accounting is very important. Therefore, the main purpose of this study is to investigate the feasibility of the full implementation of accrual accounting in Iran public sector within the timeframe determined in the law of the regulation of part of the governmental financial rules. In this study, conditions and resources required for implementation of accrual accounting in the public sector, affecting factors in the transition period, and experience of some countries in adopting accrual accounting are reviewed and then, on that basis, it’s concluded that the determined timeframe in above law is not realistic and practicable due to constraints of resources, insufficient infrastructure, and size of Iran public sector. As the continuation of the move towards accrual accounting in the public sector to full implementation can help the government to achieve the goals of the resistive economy, it is suggested that by considering the existing conditions and experiences of other countries, a reasonable and realistic timeframe to be determined for full implementation of accrual accounting in Iran public sector

Keywords

References

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Governmental Accounting
Volume 3, Issue 2 - Serial Number 6
September 2017
Pages 9-18

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History

  • Receive Date: 04 October 2017
  • Revise Date: 24 October 2017
  • Accept Date: 05 March 2018

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