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Research Article Open access CC BY 4.0

Implementation of Discretionary Accrual in Local Governments and Motivation of Local Government Incentives: Literature Review

Eka Octariyani, Rindu Rika Gamayuni, Fitra Dharma

Asian Journal of Economics, Business and Accounting · pp. 272–279 · Published 17 Sep 2022

10.9734/ajeba/2022/v22i2230730

Abstract

This study is a literature review aimed at exploring the application of discretionary accruals and the motivation of Regional Incentive Funds (DID) received by local governments. Depreciation of fixed assets was chosen as a profit management technique used by local governments because fixed assets are the largest component of the balance sheet and involve the operational activities of local governments. There are not many studies that discuss the application of Discretionary Accrual by linking the incentives received in non-profit organizations, especially in Indonesia. Ferreira, Carvalho and Pinho [1] stated that there have not been many earnings management studies conducted by non-profit organizations so that there are still many research opportunities in this area, moreover there is no research related to earnings management in order to obtain subsidies or grants from the government [2].

Discretionary accrual local government incentives DID depreciation earning management nonprofit organization

Cited by 4

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Analysis of the Influence of Abnormal Accrual, Internal Control System, and Audit Findings on the Quality of Government Financial Reports

Chyntia Dwi Putri, R. Gamayuni, F. Dewi · International Journal of Economics and Management Sciences · 2024

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