The Impact of Transitioning to Accrual Accounting in Government Units on the Quality of Financial Reports in the Kingdom of Saudi Arabia

Abstract

This study is set up to find out the impact of transitioning to accrual accounting in government units on the quality of financial reports in the Kingdom of Saudi Arabia. It also mis toims to  statistically significant differences between the perspectives of the study sample members with reference to the variables of years of experience and educational qualification regarding the effect of transitioning to applying accrual accounting. A questionnaire was designed and distributed to a judgmental sample (Judgmental or Snow Ball Sampling) of (321) Accountants at the Ministry of Finance. The study sample members (respondents) are allowed to distribute the questionnaire to other qualified individuals regarding the subject under study.  In light of this, data was collected and analyzed and hypotheses were tested using the statistical analysis program (SPSS). The study proved that transitioning to applying accrual accounting in government units has a positive impact on the quality and accuracy of financial reports in the Kingdom of Saudi Arabia. It also provides the possibility of comparing the financial reports of government units and improving the economic and financial capabilities of the Kingdom of Saudi Arabia.The study also demonstrated that there are statistically significant differences between the responses of the study sample individuals about the impact of transitioning to accrual accounting in government units on the quality of financial reports in the Kingdom of Saudi Arabia with reference to the variables of years of experience and educational qualification.With respect to these findings, the study recommended the need to complete the project of transition to accrual accounting in all government units. Adequate resources for training support for media programs, professional institutions and auditing, and support from the legislative authority and higher institutions should be encouraged.