Accrual accounting implementation in the Canadian Federal Government

The Canadian Federal Government began implementing an accrual accounting system in 1995 and completed it in fiscal year 2003. The objective of this study is to explore accrual accounting implementation in the public sector. In an exploratory, qualitative study, interviews performed with senior government personnel provide information regarding the implementation of the accrual accounting system. The interviews were guided by an a priori model that was based upon relevant literature. These interviews reveal activities undertaken by various departments in order to implement the system. Technical and cultural/people challenges were experienced along with varying degrees of benefits. Enterprise systems helped facilitate implementation. Each department's process was somewhat unique along with the benefits and challenges experienced. This study contributes to the literature by developing a model for public sector implementation of accrual accounting. A clearer understanding of the process and obstacles will help government accountants attain the expected benefits from the system.