Accounting policies in the public sector: Characteristics and consequences of accounting for capital assets

McDonough, Ryan P.; Yan, Claire J.

doi:10.1016/j.jaccpubpol.2022.107033

Cited by 9 publications

(5 citation statements)

References 22 publications

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“…Research on GASB 34's infrastructure accounting focused primarily on the modified and depreciation approaches that are used to account for capital assets. The studies show low adoption of the modified approach by governments (Pryor, 2013; McDonough and Yan, 2023). Commonalities in the research include a lack of comparability involving the choice to depreciate or adopt the modified approach, useful lives and benchmarks selected (Vermeer et al ., 2011; Pryor, 2013; McDonough and Yan, 2023).…”

Section: Discussionmentioning

confidence: 99%

“…The studies show low adoption of the modified approach by governments (Pryor, 2013; McDonough and Yan, 2023). Commonalities in the research include a lack of comparability involving the choice to depreciate or adopt the modified approach, useful lives and benchmarks selected (Vermeer et al ., 2011; Pryor, 2013; McDonough and Yan, 2023). Yet, for government agencies that chose to adopt the modified approach, Bloch et al .…”

Section: Discussionmentioning

confidence: 99%

“…McDonough and Yan (2023) conducted a comprehensive study of government capital asset accounting policies resulting from the GASB 34 infrastructure accounting requirements. The purpose of the study was to examine the choices made by governments in their capital asset accounting policies, how the policies have evolved since they were adopted, whether governments that adopted the modified approach have adjusted their asset assessment approaches and the consequences of the policies adopted.…”

Section: Review Of Gasb 34 Literaturementioning

confidence: 99%

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A review of GASB No. 34

Njoroge,

Solsma,

2023

JPBAFM

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PurposeThis paper documents the Government Accounting Standards Board (GASB) 34 literature, primarily in the areas of (1) accountability and improved reporting, (2) government-wide financial statements and accrual accounting and (3) infrastructure asset capitalization and the modified approach. The paper also evaluates the state of the research, recognizes implications for practice and standard setting, identifies knowledge gaps and proposes avenues for future research.Design/methodology/approachThe authors identified the articles in this narrative review by searching Google Scholar and EBSCO for the years 2000 through 2023, using the keywords GASB 34, government-wide financial statements, government fund statements, infrastructure assets and modified approach.FindingsThis review finds that GASB 34 requirements improved accountability and reporting, but GASB can still make improvements. The addition of the MD&A section requirement improved readability but placed a burden on preparers. Analysis of government-wide statement research indicates that the accrual-based Statement of Net Assets provides value in credit decisions, while the accrual-based Statement of Activities does not. The research on infrastructure accounting requirements shows limited adoption of the modified approach and some comparability issues with choices involving capitalization thresholds, baselines and asset management systems (AMSs). Based on this review, the authors also present suggestions to further this line of research.Originality/valueTo the best of the authors’ knowledge, this is the first article that reviews over 20 years of GASB 34 related literature. The review and suggestions for future research are timely as GASB is in the process of reexamining some of GASB 34's requirements.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Review Of Gasb 34 Literaturementioning

confidence: 99%

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A review of GASB No. 34

Njoroge,

Solsma,

2023

JPBAFM

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“…Public sector organizations work in different specializations, i.e., agriculture, engineering and pure sciences, construction, livestock, and medical. Public organizations are looking for new ways to use digital technologies to increase the efficiency of their internal processes and improve their interactions with clients, whether citizens or businesses [ 10 , 11 ]. Public organizations are faced by challenges like social problems that arise from lack of resources (physical resources, knowledge resources and other resources to manage) and provide quality service to their clients [ 12 ].…”

Section: Introductionmentioning

confidence: 99%

A systematic review on the roles of knowledge management in public sectors: Synthesis and way forwards

Kassa,

Ning

2023

Heliyon

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“…Managing tangible assets (i.e., property, plant, equipment, infrastructure) properly and optimally is crucial to supporting the government's services (McDonough & Yan, 2023) in the era of new public management in Indonesia (Ratmono & Darsono, 2022). Utilization and management of tangible assets appropriately and adequately increase the effectiveness and efficiency of the quality of government services to the public (Dharma et al, 2023;Gonzalez-Caceres et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Optimizing the utilization of government-owned tangible assets through managing institutional factors in Indonesia

Faridah,

Rahman Lubis,

Diantimala

et al. 2023

Public and Municipal Finance

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This study aims to examine whether the institutional factors – governance, asset knowledge, internal control system, and competencies – optimize the utilization of provincial, regency, and municipal governments’ tangible assets in supporting public services. In contrast to previous research, which employed Sharia ethics as exogenous variables, this study includes Sharia ethics as a moderating variable in the model. Sharia ethics is one specific factor in implementing Sharia principles by the government that applies Islamic law in Indonesia. The province of Aceh, with all its regencies and municipals, is the only province that applies Islamic principles in running its government. Primary data were collected using a questionnaire sent to 285 provincial and district government asset managers using a Google form; 229 questionnaires were returned. Structural equation modelling (SEM) was employed to analyze the complex relationships and the hypotheses. The results reveal that institutional factors are not strong enough to optimize the utilization of tangible assets without having deep Sharia ethics. It meant that Sharia ethics is necessary for strengthening the relationship between the institutional factors and the optimization of government asset management in provincial, regency, and municipal governments. The results provide recommendations for provincial, regency, and municipal governments to develop appropriate and reasonable regulations and standards for optimizing asset management within the Aceh government.

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Accounting policies in the public sector: Characteristics and consequences of accounting for capital assets

Cited by 9 publications

References 22 publications

A review of GASB No. 34

A review of GASB No. 34

A systematic review on the roles of knowledge management in public sectors: Synthesis and way forwards

Optimizing the utilization of government-owned tangible assets through managing institutional factors in Indonesia

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