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The diffusion‐adoption of accrual accounting in Sri Lankan local governments
Author(s) -
Dissanayake Thusitha,
Dellaportas Steven,
Yapa P. W. Senarath
Publication year - 2020
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/faam.12222
Subject(s) - accrual , accounting , business , fund accounting , accounting information system , management accounting , financial accounting , earnings
Abstract The aim of this paper is to evaluate the diffusion‐adoption of accrual accounting among Sri Lankan local governments. The paper draws on the Diffusion of Innovation theory to explain the factors that assist or mitigate the adoption of accrual accounting as a new accounting practice. Finance managers, charged with the responsibility of adopting accrual accounting, were influenced by two major factors: a centralised knowledge‐diffusion process educating these finance managers about its compatibility; and its observability in practice to understand the benefits of adoption. The paper contributes to the understanding of the diffusion of accounting innovation in developing countries and the role of key players such as professional associations within this process.