Accrual Discretion Policy on the Excess/Less Budget Financing at the Provincial Level

Abstract

This study aims to analyze the excess/less budget financing (SILPA/SIKPA) as an impact of accrual discretion. Accrual discretion is proxied by total accruals, changes in income, and plant, property, and equipment (PPE) in accordance with the Jones Modification model. The data used is the Provincial LKPD LHP in Indonesia. Data testing was performed by using multiple regression analysis methods. The test results prove the accrual discretion through total accruals, income changes, and PPE simultaneously have a significant effect on SILPA/SIKPA in the provinces in Indonesia.