Financial Accounting

In the last 20 years, more and more OECD countries have introduced accrual accounting at all tiers of government and one of the main themes for discussion and research at the turn of the 21st century has been whether the transition from accounting on a cash basis to accrual accounting is appropriate for the public sector or not. Sweden was one of the pioneer countries to introduce accrual accounting, first on a voluntary basis (1980s) then mandatory (1998).

Since Sweden has a comparatively long tradition of accrual accounting, we believe that Sweden is a good empirical case to study compliance to accounting regulations and the use of financial reports and accounting information. Use and compliance issue becomes more important as more and more countries adopt accrual frameworks for their public sector accounting, using the argument of improving efficiency, accountability and transparency.

With the aim to improve efficiency, accountability and transparency the relevance of study the impact of the use of financial reports and accounting information is vital, especially when the accounting information becomes part of the benchmarking and resource allocation at different levels. With accrual accounting there will always be a wider scope for arbitrary judgement, that is, accounting choices according to the interests of different parties. The need for more extensive regulation to support and control practice becomes apparent. 

Senast uppdaterad: 2016-03-22