Exploring the local government accounting literacy of accounting teachers in a developing country

Purpose This study aims to explore local government accounting (LGA) literacy among accounting teachers in a developing-country context. However, given the limited literature that provides instruments to assess accounting teachers' LGA literacy, this study develops an assessment instrument grounded in Bloom's Taxonomy and the Theory of Attitude and Attitude Change to achieve its aim. Design/methodology/approach Given the limited scholarly attention to assessing LGA literacy among accounting teachers, this study employed an exploratory approach using a quantitative descriptive method. First, an instrument for assessing LGA literacy was developed. Second, accounting teachers' LGA literacy was assessed within the context of vocational accounting teachers in the Daerah Istimewa Yogyakarta (DIY) Province, Indonesia. Third, the instrument's validity and reliability were analysed. Fourth, the assessment results were further analysed. Findings Using the developed accounting teachers' LGA literacy assessment instrument, this study reveals that accounting teachers in DIY Province, as a proxy for Indonesia, exhibit low levels of LGA literacy, primarily attributed to inadequate LGA knowledge. Further analysis indicates that limited LGA knowledge constrains teachers' recognition of LGA as an accountability instrument, which may weaken their attitudes towards LGA and subsequently reduce their engagement in LGA-related teaching practices. Originality/value This study addresses gaps in the existing literature in three ways. First, it provides evidence of the challenges faced by accounting teachers in delivering effective LGA instruction in a developing-country context. Second, it develops an instrument for assessing teachers' LGA literacy. Third, it demonstrates the theoretical integration of Bloom's Taxonomy and Attitude Change Theory in assessing and analysing accounting teachers' LGA literacy.