Transition to accrual accounting in a developing country: the perception of accounting professionals

Purpose This research paper aims to achieve three research objectives: (1) understand the perception of accounting professionals in the Mozambican public sector on the transition to accrual accounting (AA); (2) investigate the perceived usefulness of AA information and the main difficulties and advantages in changing process; and (3) to explore the differences in the perception of central and local government accountants. Design/methodology/approach Following a quantitative approach, data were collected through a survey addressed to the chief financial officer (CFO) or those professionals responsible for the area of finance/accounting in the local (municipalities) and central government (provinces) of Mozambique. Findings Findings highlight that the transition to AA systems is far from being a taken-for-granted in the context of Mozambique because of its low capacity and the weak impetus or stimulus for change imposed by the main actors of change like politicians and external consultants. Despite the perceived lack of capacity, expertise and training, professionals recognize the importance of changing from cash basis to AA to promote the transparency, accountability and the quality of the new accounting system. Different perceptions were found in local and central governments. In addition, AA practices are perceived to be useful in the fight against corruption in a developing country where corruption is yet a hindrance to economic growth. The main difficulties in the transition process were also discussed, which provide valuable contributions for other similar economies, particularly in the African continent where research is still scarce. Originality/value The study provides academic, practical and political contributions by understanding the process of transition to an accrual-based accounting system in the context of an emerging economy. New insights were provided to support (local and central) governments of emerging economies in the design of future public accounting reforms, particularly in the African continent where these topics are yet understudied.