Abstract
Purpose - The current research study explores the coexistence of cash accounting and accrual accounting systems through an investigation of the roles they fulfill in Greek municipalities.Design/methodology/approach - Our survey results are based on the answers of the financial department principals of 106 municipalities to a structured questionnaire. The roles of accounting investigated are informed by Ansari and Euske’s (1987) model.Findings - It appears that cash accounting information prevails in the major function of decision making with accrual accounting information playing a secondary role. Larger municipalities seem to use accounting data more extensively than smaller ones for negotiations both in accrual and cash terms.Originality/value - Our study sheds light on the actual use of accrual accounting information in a public sector setting where customarily decisions were based on cash accounting considerations.
Purpose - The current research study explores the coexistence of cash accounting and accrual accounting systems through an investigation of the roles they fulfill in Greek municipalities.Design/methodology/approach - Our survey results are based on the answers of the financial department principals of 106 municipalities to a structured questionnaire. The roles of accounting investigated are informed by Ansari and Euske’s (1987) model.Findings - It appears that cash accounting information prevails in the major function of decision making with accrual accounting information playing a secondary role. Larger municipalities seem to use accounting data more extensively than smaller ones for negotiations both in accrual and cash terms.Originality/value - Our study sheds light on the actual use of accrual accounting information in a public sector setting where customarily decisions were based on cash accounting considerations.
