|
|
Discretionary and Specific Accrual Accounting Practices of Local Governments: Influence of Economic Determinants
Robyn Pilcher, Curtin University of Technology
J - L.W. Mitchell Van Der Zahn, Curtin University of Technology
ABSTRACT: A unique contribution of our study is aside from examining discretionary accruals within the public sector, we consider specific accruals. Data is collected from NSW local government annual reports leading to a final sample comprising 444 local government fiscal year observations. Whilst documenting the mean level of discretionary accruals is approximately zero, all unexpected specific accruals are negative. We show a significant correlation between discretionary accruals and all our unexpected specific accruals apart from that related to inventory. We conjecture key demographic features of local governments may influence discretionary and specific accruals. Evidence documented through partitioning shows interesting accrual patterns. Finally, we find for discretionary accruals both demographic and financial features play a significant role in explaining variations between local government practices. For specific accrual accounts, however, financial features are dominant.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|