Public Sector Accounting Reform: Transparency, Digitalization, and Value-for-Money

Abstract

Public sector accounting reform is an important agenda in realizing more transparent, accountable, and performance-oriented government financial governance. This study synthesizes the literature of the last five years to examine the development of accrual accounting implementation, the digitization of accounting information systems, and the application of value-for-money principles in public financial reporting and evaluation. The results of the synthesis show that accrual-based accounting is able to provide a more comprehensive fiscal picture, especially related to asset recognition, long-term liabilities, and real government expenses. However, these benefits are highly dependent on the readiness of human resources, regulatory clarity, and consistency of operational procedures. Digitalization has been proven to speed up the reporting process and increase data openness, but its effectiveness requires system integration, data standardization, and strengthening of employee technical capacity. Meanwhile, the value-for-money concept encourages the orientation of reporting towards efficiency, effectiveness, and public value generated from government programs. This study concludes that public sector accounting reform will be optimal if implemented through a holistic approach that includes institutional, technological, supervisory, and organizational culture changes.