The processes of accounting changes as emerging from public and fiscal reforms

Abstract

Purpose The purpose of this paper is to explain the emergence processes of accounting change in the Jordanian Ministry of Finance as well as the Jordanian public sector within its socio-economic contexts, as brought about by public and fiscal reforms. The study explains the ways in which accounting change dynamics can emerge on the basis of interaction between “external” origins and “internal” accounts; which identifies that accounting is both shaped by, and shaping, wider socio-economic and political processes. Design/methodology/approach The paper uses an interpretive case study approach. The study adopts institutional and structuration theory as a theoretical lens and uses triangulation in data collection, including interviews, observations and documents and archival records. Findings The paper concludes that the new budgeting systems together with the Results-Based Management emerged as a result of interaction between “external” origins and “internal” accounts. It also highlights the interaction between these levels from one side, and the accounting and organizational change from the other side. The study confirms that factors other than economic may also play an influential role in the emergence of accounting change. It also concludes that there is a radical change of accounting systems in the case study (Ministry of Finance), which is not only a cosmetic change in accounting but is also represented in the actual working practices. The study also confirms that accounting is not a static phenomenon, but one that changes over time to reflect new systems and practices. Research limitations/implications The paper has important implications for institutional research on accounting change and public sector reforms in responding to recent calls to bridge the gap between the extra- and intra-organizational levels of analysis. Hence, it has essential implications for the way in which successful change can be defined in accounting and organizational change literature. It also identifies that management accounting is both shaped by, and shapes, wider socio-economic and political processes, which has important implications for the methods of studying management accounting change. Originality/value The paper is one of the few case studies in the accounting literature to analyze the practical issues organizations face when changing their method of budgeting as influenced by public sector and fiscal reforms. The study contributes to both accounting literature and institutional theory by providing further understanding and “thick explanation” of the dynamics of accounting change in the public sector.

Peran Beyond Budgeting Entry Scan Untuk Mengatasi Permasalahan Penganggaran Sektor Publik

“…Hal ini seiring dengan isu volatility, uncertainty, complexity and ambiguity (VUCA) pada proses penganggaran yang semakin meningkat, sehingga peran self-regulating management model semakin penting. Beyond budgeting secara harfiah dapat diartikan sebagai 'di luar penganggaran', tetapi tidak berarti harus menyingkirkan atau menghapus anggaran (Alsharari & Abougamos, 2017;Anessi-Pessina, Barbera, Sicilia, & Steccolini, 2016;Hansen, 2011). Pada prinsipnya, beyond budgeting berfokus pada bagaimana menciptakan organisasi yang lebih gesit (agile) (Helpap, 2017;Khodachek & Timoshenko, 2018;Wällstedt & Almqvist, 2017;Zhao, 2016).…”

“…Selain itu, terdapat sebelas masalah krusial terkait anggaran dan penganggaran. Kesebelas masalah tersebut adalah lemahnya keterkaitan dengan strategi, memakan banyak waktu, dorongan atas perilaku tidak etis, asumsi yang cepat outdate, pengendalian semu (illusions of control), pembuatan keputusan yang terlalu cepat, keputusan dibuat di unit yang terlalu tinggi, pencegah terhadap hal-hal yang benar dan baik terjadi, pendorong terhadap halhal yang salah, dunia berakhir pada tanggal 31 Desember, dan instrumen yang salah sebagai penilaian atas kinerja (Alsharari & Abougamos, 2017;Hansen, 2011). Dapat disimpulkan bahwa anggaran yang memiliki karakteristik kaku, tidak dinamis, dan tidak akomodatif terhadap perubahan, diindikasikan menghambat kemajuan organisasi.…”

A comparative analysis of taxation and revenue trends in the Middle East and North Africa (MENA) region

“…Maximum rates are also very high and more importantly, perhaps, the number of tariff rates is elevated in all countries, except in Kuwait. All of these observations suggest that the low revenue takes from tariffs may be explained, at least in part, by the use of preferential concessions such as exemptions and reduced rates (Mansour, 2015; Alsharari and Abougamos, 2017).…”

“…General sales taxes in MENA are primarily of the destination-based VAT type and derive from: cascading sales taxes that applied to goods prior to the 1990s, the case in Maghreb countries and Egypt, which transformed old sales taxes into a general sales tax, which functions as a VAT at the standard rate, in most cases, on goods and a series of excises on business-to-business services – achieved by modifying laws to expand the tax base to services and reduce cascading by enhancing refunds of taxes on intermediates and capital goods; and new VATs designed without any historical heritage – the case in Lebanon, Jordan and the OME group. Legacy issues are important in their implications for some key VAT design issues, including the nomination of level and number of rates, the registration threshold, exemptions and possibly other decisions and they have similarly affected the dynamics of national policy debates on VAT reforms (Helmy, 2013; Mansour, 2015; Alsharari and Abougamos, 2017). …”

Supply Chain Integration and Customer Relationship Management in the Airline Logistics

“…Meanwhile, the detection of any differences in perceptions among interviewees that might contradict the patterns previously identified was closely managed. In this regard, similar themes or opinions expressed by the interviewees were explained within the normal body of discussion and analysis, while different themes were discussed using direct quotations from the interviewees [87] [88].…”