Browsing by Author "Khwanthey, Marco Ephraem"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Investigating factors influencing effective implementation of accrual accounting in public sector financial reporting: a case study of selected ministry in central government in Tanzania
    (University of Dar es Salaam, 2016) Khwanthey, Marco Ephraem
    The main objective of this study is to assess the factors influencing effective implementation of accrual accounting in public sector financial reporting. The variables were generated using New Institutional Sociology (NIS), contingency theory as well as decision usefulness concept. The study used quantitative methods in which questionnaires were administered to three Ministries namely, Ministry of Energy and Mineral, Ministry of Finance and Planning and Ministry of Works, Transport and Communication. The study sample size encompassed 204 respondents thus attained 88.7% response rate. The data collected was analysed using exploratory factor analysis and multiple linear regression method. The findings of the study revealed that, pressure from donor, pressure from auditing, and training are positively related and have significant influence effective implementation of accrual accounting. The study also found that pressure from NBAA, management change commitment and culture of transparence are positive and insignificantly influence effective implementation of accrual accounting. Furthermore the study revealed that management support, regulatory matters and level of technology negatively and insignificantly influence effective implementation of accrual accounting. Moreover, the study found that political will and demographic or human related factors negatively and significantly influence the effective implementation of accrual accounting. The study further revealed that effective implementation of accrual accounting has positive and significant influence on the level of managerial accountability.It is concluded, that critical factors that positively influence effective implementation of accrual accounting are pressure from donor, pressure from auditing and training. The study recommends that effective implementation of IPSAS accrual should go together with the improvement of accounting system like IFMS/Epicor, review of regulation and regulatory framework as well as training stakeholders to ensure financial reporting sustainability in public sector. The finding of this study contributed to the institutional and contingency theory by some factors influencing positively and other factors influencing negatively to the effective implementation of accrual accounting. Furthermore, many public sectors in developing countries including Tanzania are adopting and implementing New Public Management practices like IPSAS accrual (World Bank, 2008).