What hath the gasb wrought? the utility of the new reporting model: A national survey of local government finance officers

Results from a national survey of local government finance directors suggest that five years after implementation, the post-Statement 34 accrual-based accounting model has done little to stimulate the development of operating cost data (such as activity-based costing) or performance measurement, and provides decision makers with little information to improve short- or long-term financial planning,. While younger respondents attach greater value-added to the New Reporting Model (NRM), overall support for the hybrid approach (traditional fund reporting plus entitywide full accrual reporting) is limited. Consistent with the "Theory of Planned Behavior" applied in prior accounting research; traditional sociological drivers (community size, form of government, and other demographic factors.) do not impact perceptions of the NRM. Findings also suggest "accrual anomie" due to lack of experience with this basis of accounting.