Determinants of information users in local public accounting
The purpose of this paper was to identify the information users assumed by the financiers of local governments in India and to empirically clarify the determinants of these users. The Ministry of Finance requires local governments in India to prepare public accounting information based on uniform st...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2022.2124599 |
| _version_ | 1811265751880826880 |
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| author | Syed Raziuddin Ahmad Raj Bahadur Sharma Ijaz Ali Asif Baig Imran Ahmad Khan |
| author_facet | Syed Raziuddin Ahmad Raj Bahadur Sharma Ijaz Ali Asif Baig Imran Ahmad Khan |
| author_sort | Syed Raziuddin Ahmad |
| collection | DOAJ |
| description | The purpose of this paper was to identify the information users assumed by the financiers of local governments in India and to empirically clarify the determinants of these users. The Ministry of Finance requires local governments in India to prepare public accounting information based on uniform standards from the fiscal year 2017 and is currently examining how and by whom the prepared accounting information can be utilized. In the U.S., where accrual accounting has already been adopted by states and local governments, the Governmental Accounting Standards Board (GASB) has conducted a survey of financiers and stakeholders to determine the needs of information users for financial reports in the development of accounting standards. Therefore, this paper predicts that when a local government has a large amount of debt (debt hypothesis), when there is a large demand for public goods from citizens (public goods hypothesis), and when the chief executive has experience in using financial statements (upper management hypothesis), local government treasurers will actively consider information disclosure measures in anticipation of outsiders using the information. The results of the questionnaire survey of 1,788 local government financiers indicated that the main information users of public accounting information assumed by local government financiers are government officials. As a result of the factor analysis, we found that information users can be roughly classified into government officials and other information users. We also found that in local governments where financiers assume that information users use accounting information, the chief executive has experience as a corporate officer. |
| first_indexed | 2024-04-12T20:29:33Z |
| format | Article |
| id | doaj.art-a5792239d07e439890da4926afbb90e1 |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-04-12T20:29:33Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-a5792239d07e439890da4926afbb90e12022-12-22T03:17:46ZengTaylor & Francis GroupCogent Business & Management2331-19752022-12-019110.1080/23311975.2022.2124599Determinants of information users in local public accountingSyed Raziuddin Ahmad0Raj Bahadur Sharma1Ijaz Ali2Asif Baig3Imran Ahmad Khan4Department of Accounting,Faculty of Business Studies, Arab Open University, Saudi ArabiaDepartment of Accounting, College of Business Administration, University of Bahrain Kingdom of BahrainCollege of Business and Management, Fahad Bin Sultan University, Tabuk, Saudi ArabiaJubail Industrial College, Jubail Industrial City, Jubail, Saudi ArabiaResearcher and Consultant, Creative Heads Consultants, IndiaThe purpose of this paper was to identify the information users assumed by the financiers of local governments in India and to empirically clarify the determinants of these users. The Ministry of Finance requires local governments in India to prepare public accounting information based on uniform standards from the fiscal year 2017 and is currently examining how and by whom the prepared accounting information can be utilized. In the U.S., where accrual accounting has already been adopted by states and local governments, the Governmental Accounting Standards Board (GASB) has conducted a survey of financiers and stakeholders to determine the needs of information users for financial reports in the development of accounting standards. Therefore, this paper predicts that when a local government has a large amount of debt (debt hypothesis), when there is a large demand for public goods from citizens (public goods hypothesis), and when the chief executive has experience in using financial statements (upper management hypothesis), local government treasurers will actively consider information disclosure measures in anticipation of outsiders using the information. The results of the questionnaire survey of 1,788 local government financiers indicated that the main information users of public accounting information assumed by local government financiers are government officials. As a result of the factor analysis, we found that information users can be roughly classified into government officials and other information users. We also found that in local governments where financiers assume that information users use accounting information, the chief executive has experience as a corporate officer.https://www.tandfonline.com/doi/10.1080/23311975.2022.2124599Public AccountingInformation UsersAccrual AccountingDebt RatiosFinanciersH72 |
| spellingShingle | Syed Raziuddin Ahmad Raj Bahadur Sharma Ijaz Ali Asif Baig Imran Ahmad Khan Determinants of information users in local public accounting Cogent Business & Management Public Accounting Information Users Accrual Accounting Debt Ratios Financiers H72 |
| title | Determinants of information users in local public accounting |
| title_full | Determinants of information users in local public accounting |
| title_fullStr | Determinants of information users in local public accounting |
| title_full_unstemmed | Determinants of information users in local public accounting |
| title_short | Determinants of information users in local public accounting |
| title_sort | determinants of information users in local public accounting |
| topic | Public Accounting Information Users Accrual Accounting Debt Ratios Financiers H72 |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2022.2124599 |
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