In this paper, we will look at and discuss the differences and similarities between governmental entities and for-profit business. We will mainly discuss the different goals, purposes, users, and issues between government and for-profit accounting in order to show that changes to governmental accounting standards would lead to more transparency and accountability, which in turn would help determine the success of an individual governmental entity. We will conclude by looking at countries that have implemented accrual accounting for government-wide financial statements, and we will explain how the adoption of accrual accounting for government-wide financial statements in the United States will lead to more transparency and accountability.

Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / PS International (PSI) is an international trading company that specializes in the trading of bulk agricultural commodities. It has global strength to both export and import a variety of agricultural products using affiliated offices positioned throughout the world. To adapt to competitive pressures, advancements in technology, and economic conditions, privately-held companies are re-structuring their business by acquiring or partnering/merging with other companies. This results in a redefinition of the assets, operations, and relationships with the stockholders. The acquisition of a private company by a publicly held company creates unique issues because the newly acquired private company must meet SEC accounting standards. One example of this is the acquisition of PSI by Seaboard Corporation, a publicly traded company. In 2010, the owners of PSI sold fifty percent share of the company to Seaboard Corporation. Today Seaboard Corporation owns 80% of PSI. This research problem is based on the challenges that the acquisition of a private company by a public company faces. The focus of the analysis was on the accounting changes in the area of accounts receivable, in particular when revenue is recognized. PSI used cash basis accounting and Seaboard is required to use an accrual method that required a modification in PSI’s accounting system. This research investigates the impact of those changes on PSI’s accounts. The main factors used for comparison of revenue recognition under the cash and accrual method were departure date, transit time and payment terms. The comparisons were based on a data from 196 deliveries made in 2012. In the cash method, revenue was recognized for all the transactions during the month of shipment departure. This revenue was included whether or not the transactions were paid in full and whether or not the cargo arrived at its destination in the same month. In the accrual method, only 20.92% of the transactions were recognized in the current month of shipment, because revenue must be earned and realizable to be consistent with the SEC criteria, otherwise revenue must be deferred until the payment is collected. Therefore, as the result of applying either the cash or accrual method in the income statement, transaction will be recorded as accounts receivables and/or deferred transactions. With the application of the accrual method, the working capital calculation and the annualized margin must take more into consideration by managers, the trading staff and logistic staff.

Faculty of Commerce School of Accountancy 9108665/p swartzg@soa.wits.ac.za / The debate on the determinants of firm value remains unresolved in finance research. This research report contributes to the debate by examining the validity of the Ohlson (1995) valuation model in South Africa. Using Johannesburg Securities Exchange data, this research report aims to identify whether the book value of assets, accounting (accrual) earnings, and abnormal cash dividends explain the behavior of South African share prices. The Ohlson (1995) model has been successfully tested in a number of recent studies (Collins, Pincus and Xie, 1999; Garrod and Rees, 1998; Collins, Maydew and Weiss, 1997; and Kothari and Zimmerman, 1995). This study attempts to extend this body of work in an emerging market context (South Africa), to determine whether the results obtained in developed markets also hold in an emerging market setting, where required rates of return are higher, liquidity is low, and capital is scarce. The research uses both cross sectional and panel data for 129 Johannesburg Securities Exchange listed companies over the 1992-2003 period to investigate the value relevance of the annual financial statements using the Ohlson (1995) model. Using cross-sectional data, the study indicates that the Ohlson (1995) model cannot be used for value prediction purposes, but does indicate that accrual accounting data is value relevant. However, using a panel data approach resulted in a statistically significant, robust, positive relationship for accounting earnings, book value of assets, and abnormal dividends in predicting firm value.

The purpose of the study is to investigate the perceptions of Sri Lankan public sector accounting professionals regarding the impacts of successful implementation of accrual accounting on public financial management in Sri Lanka over the long term. Furthermore, this study intends to explore the barriers that hinder such successful implementation and recommendations for the successful maintenance of accrual accounting in Sri Lanka over the long term. This qualitative study collected data by conducting semi-structured interviews with Sri Lankan public sector accounting professionals. The sample was selected non-randomly using the purposive sampling method. Thematic analysis was used to systematically identify and analyze patterns, themes and trends in the qualitative data collected relating to accrual accounting reform in the Sri Lankan public sector. First, this study identified that while some government organizations have successfully implemented accrual accounting in Sri Lanka other organizations still are in the initial phase of adoption, indicating that the Sri Lankan public sector has yet not fully implemented accrual accounting successfully. Second, the study found that some of the reasons for delaying the successful implementation are, interdependency of government organizations, prevailing inappropriate government regulations and policies, implementation costs, outdated systems, complexity, lack of experience and knowledge of government employees in accounts divisions, lack of support from other parties and resistance to change. Third, this study found that the successful implementation would require changing government regulations and policies suitable to the accrual concept, enhancing digitalization in the public sector, increasing other institutional support, legalization of accrual-based accounting, promoting international collaborations, developing professional skills of accounting staff in the public sector and initiating step by step approach to minimize resistance to change. Fourth, the study found that accuracy, completeness, transparency, accountability, comparability, performance evaluation, risk management, asset liability management, income expenditure management and minimizing corruption, fraud and waste are diverse benefits in the short term by implementing accrual accounting in the Sri Lankan public sector. Through these benefits, informed decision-making, international recognition and collaboration, robust budgeting and financial planning, efficiency and effectiveness, and economic stability and development will be derived in the long term. Finally, this study found that Sri Lankan public sector accounting professionals perceive that accrual accounting brings more positive advantages in both the short term and long term through its successful implementation over the issues encountered by them currently. This study offers valuable insight for policymakers, administrators and other stakeholders involved in the Sri Lankan public sector by emphasizing the importance of strengthening the successful implementation of accrual accounting.

Studien studerar intäktsredovisningen i idrottens elitverksamhet. Studien är inriktad mot ishockeyns Elitserie och fotbollens Allsvenska. Syftet med studien är att undersöka vilka problem som kan uppstå i intäktsredovisningen och förklara dem. Om problem uppkommer önskade undersökningen ta reda på om ett utvecklande av avtalen skulle kunna vara en lösning. Anledningen till detta val härstammar från Borussia Dortmund och deras problem med att intäktsredovisa ett sponsoravtal som sträckte sig över fem år. De valde att redovisa hela summan i början av kontraktstiden vilket är fel, det borde skett en periodisering över hela kontraktstiden. Idrotten har gått från att vara ett allmänt nöje till att mer och mer likna rent företagande, i alla fall på elitnivå. Revisionsbyrån PwC har utvecklat ett dokument för att underlätta redovisningen av intäkter för underhållningsbranschen då kommersiella avtalet tenderar att vara väldigt komplicerade. För att besvara studiens syfte har telefonintervjuer och mejlkonversationer förekommit med föreningarnas ekonomichefer samt redovisningsansvariga. Det resulterade i totalt åtta intervjuer, fyra från ishockeyns Elitserie och fyra från fotbollens Allsvenska. För att komplettera har årsredovisningar från föreningarna granskats med fokus på förvaltningsberättelse, resultaträkningen samt de noter som behandlar intäkter. De intäkter som valts att undersöka är sponsor- och reklamintäkter, tv-intäkter, biljetter och en liten del merchandise. Resultatet visar på att föreningarna inte anser sig ha några problem med intäktsredovisningen och skulle därför inte behöva någon utveckling av sina avtal. Däremot visade undersökningen att en förening kan hantera erkännandet av sina intäkter på olika sätt. Det finns ingen konsekvens i hur intäkterna tas upp. I vissa fall sker det vid fakturering, ibland vid betalning eller när prestationen är utförd. Ibland sker periodisering men oftast inte, förutom vid de tillfällen då betalningen erhålls under fel år. Detta är dock inget problem då föreningarna måste, både enligt elitlicensen och eftersom att de följer bokföringsmässiga grunder, följa sitt räkenskapsår.

In 1988 the New South Wales (NSW) Government was the first in Australia, and amongst the first in the world, to commit to implement accrual accounting for its General Government Sector. Subsequently, accrual accounting has been implemented by numerous governments, including all Australian governments. This thesis examines why the NSW Government decided to implement accrual accounting and the impact of this accounting change on decision making within a General Government Sector organisation. The historical account is derived from a combination of archival and oral data sources whilst an organisational learning theoretical frame is used in a single-site case study to understand the impact of accrual accounting on managerial decision making. The history of the NSW Government adoption of accrual accounting is characterised by five notable features. First, the whole-of-government initiative was implemented with remarkable speed. Second, the change was aided by the actions of an epistemic community, in which private sector consultants were most active. Third, the change was justified through expected improvements in accountability and management. Fourth, a period of resistance to the change was followed by an absence of critical discussion on the implications of the change as forces supportive of the change synergistically combined. Fifth, the change is explained by mimetic forces that initially coalesced around phantom images, presented by consultants, and subsequently recognised self-interest as an integral part of the change to accrual accounting. The impact of accrual accounting on management decision-making at an organisational level from has been mixed. Information acquisition has expanded in that new sets of accounting data are collected. However, information distribution has been unchanged by accrual accounting whilst information interpretation only marginally changed at a top management level with no discernible change at operational levels. Organisational memory has been altered by accrual accounting in that additional accounting skills and information are now held. However, use of that organisational memory is severely impeded by organisational objectives and constraints that effectively render accrual accounting information irrelevant to public sector managers’ concerns. Policy implications arising from this project are that an alternative model of accrual accounting is required together with the dual recognition that centrally imposed change may produce unpredicted change at an operational agency level and that accounting change needs to be matched to organisational characteristics. Additionally, improvements in asset management, as sought by advocates of accrual accounting, could have been delivered by non-accounting means and there is little prospect for improved managerial decision-making from the current model of accrual accounting. / http://proxy.library.adelaide.edu.au/login?url= http://library.adelaide.edu.au/cgi-bin/Pwebrecon.cgi?BBID=1375063 / Thesis (Ph.D.) - University of Adelaide, Business School, 2009

In 1988 the New South Wales (NSW) Government was the first in Australia, and amongst the first in the world, to commit to implement accrual accounting for its General Government Sector. Subsequently, accrual accounting has been implemented by numerous governments, including all Australian governments. This thesis examines why the NSW Government decided to implement accrual accounting and the impact of this accounting change on decision making within a General Government Sector organisation. The historical account is derived from a combination of archival and oral data sources whilst an organisational learning theoretical frame is used in a single-site case study to understand the impact of accrual accounting on managerial decision making. The history of the NSW Government adoption of accrual accounting is characterised by five notable features. First, the whole-of-government initiative was implemented with remarkable speed. Second, the change was aided by the actions of an epistemic community, in which private sector consultants were most active. Third, the change was justified through expected improvements in accountability and management. Fourth, a period of resistance to the change was followed by an absence of critical discussion on the implications of the change as forces supportive of the change synergistically combined. Fifth, the change is explained by mimetic forces that initially coalesced around phantom images, presented by consultants, and subsequently recognised self-interest as an integral part of the change to accrual accounting. The impact of accrual accounting on management decision-making at an organisational level from has been mixed. Information acquisition has expanded in that new sets of accounting data are collected. However, information distribution has been unchanged by accrual accounting whilst information interpretation only marginally changed at a top management level with no discernible change at operational levels. Organisational memory has been altered by accrual accounting in that additional accounting skills and information are now held. However, use of that organisational memory is severely impeded by organisational objectives and constraints that effectively render accrual accounting information irrelevant to public sector managers’ concerns. Policy implications arising from this project are that an alternative model of accrual accounting is required together with the dual recognition that centrally imposed change may produce unpredicted change at an operational agency level and that accounting change needs to be matched to organisational characteristics. Additionally, improvements in asset management, as sought by advocates of accrual accounting, could have been delivered by non-accounting means and there is little prospect for improved managerial decision-making from the current model of accrual accounting. / http://proxy.library.adelaide.edu.au/login?url= http://library.adelaide.edu.au/cgi-bin/Pwebrecon.cgi?BBID=1375063 / Thesis (Ph.D.) - University of Adelaide, Business School, 2009

Denna studie behandlar förekomsten av resultatstyrning i svenska kommuner. Tidigare forskning visar på att styrning främst tar form av periodiseringar samt att de främsta förklarande faktorerna för förekomsten är ekonomi, politik och tjänstemän. Existerande teori menar på att övergången från kassabaserad redovisning till bokföringsmässiga grunder underlättade resultatstyrning och att det förekommer både i kommuner och företag i Sverige.Undersökningen syftar till att förklara förekomsten av resultatstyrning i kommuner med hjälp av posten “bidrag till statlig infrastruktur”. I analysen ifrågasätts användandet av resultatstyrning, vilka incitament som finns samt hur dess incitament påverkar beslutprocessen.Studien är en dokumentstudie och har genomförts som en kvantitativ analys. Det empiriska materialet har främst samlats in från kommuners årsredovisningar. Flera statistiska analyser genomförs och leder fram till studiens resultat. Resultaten visar på att resultatstyrning förekommer i kommuner och att det främst är kortsiktiga incitament som styr besluten. Tiden som kommuner väljer att periodisera bidragen på beror främst på hur stora beloppen på bidragen som lämnas är samt om kommunen har mottagit stora engångsbelopp i form av till exempel AFA-försäkringar, AFA-premier eller konjunkturstöd från staten de åren eller inte. / This thesis is an analysis of the occurrence of earnings management in Swedish municipalities. Previous theory claims that the change from cash accounting to accrual accounting has made it easier to involve in earnings management actions and that these actions are broadly used in both municipalities and corporate companies. Similar studies proves economy, politics and civil servants to be explanatory for why earnings management takes place in municipalities.We seek to explain this occurrence by using the accounting record contribution to national infrastructure. The aim is to answer what the main incentives are for manipulating the results in municipalities and how these incentives affect the decision making progress.This is mainly a documentary study that focuses on the public financial reports of municipalities. A statistical analysis is performed and conclusions are drawn. We find evidence that earnings management exist in municipalities and that the biggest explaining factor of how the contribution is accounted for depend on the size of the contribution to infrastructure and if the municipality has received any big amounts from the government in form of AFA-insurances, AFA-premier or cyclical support that year or not. This indicates a short-term thinking with high focus on net income. This study is hereafter written in Swedish.

Performance and accrual-based financial management systems as envisaged in the 1990 Chief Financial Officers (CFO) Act, the 1993 Government Performance and Results Act (GPRA), the 1996 Federal Financial Management Improvement Act (FFMIA) and related legislation have been in place since prior to the turn of the millennium. Nevertheless, although performance has been measured and financial accountability improved in U.S. federal government agencies, there remains a gap in reporting on operational efficiency and effectiveness. This dissertation extends research into performance management to determine the extent to which performance measurement systems report on operational efficiency and effectiveness and thereby further facilitate performance management. It examines outputs as the unit-of-analysis within the input-output-outcome framework of performance measurement and reporting systems and their integration with accrual-based financial management systems in assessing government operations. It challenges the predominantly outcomes-focused reporting system as insufficient to the objective of improved operational efficiency and effectiveness. The research methodology employs qualitative analysis of selected agency performance reports, interviews of selected agency senior managers and oversight officials, analysis of previous research on performance reporting, and analysis of GAO survey data. The research examines an increased focus on output reporting as a means to improve operational efficiency and the linkage of outputs to outcomes as an effectiveness measure. The research leads to the conclusion that very little output efficiency or effectiveness measurement and reporting is occurring. The failure to measure performance in this manner is to the considerable detriment of operational efficiency, effectiveness and cost reduction in the federal government. / Ph. D.

Bakgrund/Problemdiskussion: Framtagandet av intäktsstandarden IFRS 15 påbörjades efter ett antal skandaler som visat på en problematik i det traditionella synsättet med att erkänna intäkter. Ett flertal debatter har uppkommit i hur den nya omfattande intäktsstandarden kommer ge effekt i redovisningen. Syfte: Syftet med studien är att skapa förståelse för varför intäktsströmmar påverkas respektive inte påverkas i och med övergången till IFRS 15. Metod: Vi har med utgångspunkt från en kvantitativ forskningsansats samlat in det empiriska materialet för denna studie. Detta har gjorts genom att främst utgå från data som finns i bolagens årsredovisningar 2017. För vissa bolag har även bokslutskommunikén 2017 använts som komplement för årsredovisningarna. Bolag som studerades var samtliga Large Cap bolag på Nasdaq Nordic STO.   Empiri: Av totalt 95 bolag visade 19 bolag att de fick en kvantifierbar effekt av den nya intäktsstandarden. 75 bolag redovisade att de inte skulle få någon kvantifierbar effekt av den nya intäktsstandarden, medan 1 bolag blev bortfall för studien. Slutsatser: Den nya intäktsstandarden har inneburit att bolagen behövt iaktta ett fokus på kontroll vilket bestämmer tidpunkten för intäktsredovisningen. I denna studie går det inte att avgöra ifall specifika intäktsströmmars karaktärer varit grunden till den kvantifierbara effekten som IFRS 15 givit, utan detta har snarare bestämts av det fördelade transaktionspriset på prestationsåtaganden vilket satt kontraktets värde. / Background: The development of a new revenue recognition standard IFRS 15, began after a number of scandals that showed problems with the traditional approach of recognizing revenues. The comprehensive revenue standard has arisen many discussions of how the standard will impact the accounting of enterprises.    Purpose: The purpose of this study is to understand why revenue streams gets affected and not gets affected of the transition to IFRS 15.    Method: The data for this study has been collected, through a quantitative research. The data has mainly been collected from the company´s annual reports 2017. The Q4 reports for 2017 has for some companies been used as a complement to the annual report. The study contained all Large Cap companies listed at Nasdaq Nordic STO.   Results: Of a total of 95 companies, 19 companies showed that they had a quantifiable effect of the new revenue standard. 75 companies reported that they would not have a quantifiable effect of the new standard, while one company was a loss for this study.   Conclusions: The new revenue standard has meant that companies need to observe a focus on control, which determines the timing of the revenue recognition. In this study, it is not possible to assess whether the characteristics of specific revenue streams have been the basis of the quantifiable effect that IFRS 15 has given, but this has rather been determined by the distributed transaction price on performance commitments, which set the value of the contract.