Effect of Change in Accounting University of Medical Sciences based on a cash basis to accrual basis of a complete treatment of the province is

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1 International Research Journal of Applied and Basic Sciences 2013 Available online at ISSN X / Vol, 7 (14): Science Explorer Publications Effect of Change in Accounting University of Medical Sciences based on a cash basis to accrual basis of a complete treatment of the province is Seyed Ali Malihi 1, Mojtaba Torkshavand 2, Alireza karymi 3 and Jafar Zarin 4 1. Department of Accounting, Hamedan Branch, Islamic Azad University, Hamedan, Iran. 2. Department of Accounting, Hamedan Branch, Islamic Azad University, Hamedan, Iran. 3. Department of Accounting, Hamedan Branch, Islamic Azad University, Hamedan, Iran. 4. Department of Accounting, Payam Noor University, Tehran,I.R.of Iran, Mailbox Corresponding Author Malihi57@gmail.com ABSTRACT: According to Article 16 of the Law on civil services management and article 49 of the Law of the Fourth Five-Year Development of the Islamic Republic of Iran, and article 219 of the Law of the Fifth Five-Year Development of the Islamic Republic of Iran, all executive agencies, particularly the universities and institutions of higher education and research required to provide the necessary preparation operational by the end of the fifth fiveyear budget plans are developed, so that the method of preparation of the fifth year's budget bill, drafted and submitted to parliament.in order to fulfill this purpose and operational budgeting and determining the cost of medical activities in universities and other institutions of the Ministry of Health, the full accrual method of accounting, modified cash method of accounting was replaced by the year The study, entitled ((evaluating the effects of changes in accounting systems and health services, Hamadan University of Medical Sciences of the modified cash basis to the full accrual basis)) was conducted in 1390., And this research is applied research. Community study sample consisted of all deputies, directors of finance is Vrvsay findings and test the hypothesis that the terms of the deputies and managers of universities and heads of finance: Management decisions based on accounting data based on commitment to a cash-based accounting is done the better. Accountability of managers based on accounting data based on commitment to a cash-based accounting is done the better. Evaluation of the performance of the accrual basis of accounting over the cash basis ofaccounting is done the better. Key words : Sciences based, cash basis, accrual basis INTRODUCTION Require the development of any society is the knowledge and wisdom of its members. This intelligence information is therefore timely insight exploitation in the form of goals and mission as an organization's strategy and its programs can be crystallized. Among the variety of information management for the key decisions that need financial information is a special place because the vast majority of decisions have financial implications or Btvrghyr managers directly impacts directly affect the institution's financial condition. So Information financial accounting compiled and processed as a valuable key for managers is appropriate decisions. However, despite the primacy of governance, monitoring and enforcement of laws and regulations as appliances and tools to preserve funds and public resources Accepted accounting principles in one way or another in the businesses that use of public funds, the need to provide the performance of these institutions comply with the accounting standards and principles essential to Hence the need to reform the economic Sakhtarmaly government institutions, including the universities of medical sciences by accounting reform has been emphasized.

2 Research objectives As mentioned, in order to implement relevant legislation, including Article 16 of the Civil Service Management Code and article 219 and article 49 of the Fourth Act Fifth Economic, Social and Cultural Rights, Iran. From 1388 using accrual accounting complete medical universities and institutions affiliated to the Ministry of Health, alternative accounting method cash adjusted was. Therefore the main reason for performing this study was to evaluate the effects of changing the system of accounting of the sublimity of medical science and treatment Hamadan from cash basis to accrual basis other objectives of the study are as follows:one. Compared to accounting managers making decisions based on accrual accounting on a cash basis.two. Compare managers meet with the cash basis of accounting accrual basis of accounting. History research Most public sector accounting standards, will be developed with the assumption that the government is involved in an impartial and non -profit and governmental accounting function, reporting to the rest of the budget, supply and consumption of limited funds - and the need to calculate the precise results of the performance and status no government funding.but more recently,in some countries,including Great Britain,New Zealand and Australia, using an approach based on full accrual accounting in the public sector accounting has been created. In order to analyze the costs and benefits of a full accrual accounting system it is necessary first to understand and then to consider its difference with cash accounting system. Background research Robert Bowen and his colleagues on the empirical study of 342 firms for the period to examine the association between measures of accruals ( net income plus depreciation, working capital from operations ) criteria for cash ( cash flows from operations ) of which will be.new cash flows, the cash flow from operations has an exceptionally high correlation Vfvq not guarantee a profit. One of the most important research in relation to cash flows been researching Judy Rybvrn in 1986., In this study refers to the fact that practitioners of accounting professionals for reliable high accruals on evaluation (company Vs ham it) they are questioning.rybvrn results show that the abnormal stock returns both operating cash flow between abnormal stock returns data collection obligations, there is harmony. Research hypotheses Management decisions based on accounting data based on commitment to a cash-based accounting isdone the better. meet the directors based on accounting data based on commitment to a cash-based accounting is donethe better. METHODS THE STUDY WAS PERFORMED The inductive method of research - is established in order to provide a proper analysis of change impact assessment in relation to the accounting treatment of Hamedan University of Medical Sciences completed a cash basis to accrual basis, in addition to compiling the method of library Basics theoretical research Mvark direction of the field checked, documents and questionnaires were used to gather data, which means that a questionnaire containing 16 questions related to the preparation of research Bafrzyat, and between entities involved in financial matters, such as university assistants, health care administrators, hospital administrators, chiefs Schools Vrvsay finance related units were distributed to the general consensus Nhadr issue, ensure. Five option Likert-type scale questionnaire, the questionnaire is done so in terms of quality (very low / low / somewhat / much / very much) to be rolled them into little test (5,4,3,2, 1) is given. Statistical Population and Sample Making. As previously described, participants in this study employed professionals and managers, financial experts and treatment of Hamedan University of Medical Sciences have formed. Accordingly, the population of this study consisted of heads, deputies, Vrvsay Finance Accounting units is concerned. reasons for choosing this population, and their relevance to the research question, the clashes Vkntrlhay Drmsayl administrative and finance financial. should be noted that the three parts of Hamadan University of Medical Sciences, education, Health is composed of.the population overall is 85 us altogether. Since the target population in this study is limited,so the entire target population as the sample size is considered, the sample size is equal to the statistical community. 1124

3 Analyze the data and test the hypothesis First hypothesis Null hypothesis:management decisions based on the accrual basis of accounting information than cash basis of accounting is not better.hypothesis:management decisions based on the accrual basis of accounting information than cash basis accounting is done the better. Second hypothesis Null hypothesis : the accountability of managers based on accrual -based accounting information should not be better than the cash basis of accounting.hypothesis : the accountability of managers based on the accrual basis of accounting information than cash basis accounting is done the better. First hypothesis Null hypothesis : management decisions based on the accrual basis of accounting information than cash basis of accounting is not better.hypothesis : management decisions based on the accrual basis of accounting information than cash basis accounting is done the better. Table 1. Results of dependent t-test (paired) to compare making decisions based on cash accounting managers - management decisions based on accrual accounting SIG df T Paired differences Variables ٠/٠٠٠ Management decisions on a cash basis - on the accrual basis of management decisions According to Table 10 shows the results of the first research to examine the hypothesis that the mean difference between the accounting basis 29/5 and 95 / 0 percent of the level of significance to estimate the difference between 939/3 and 633/6 was. Dependent t-test ( paired t -test ) showed that there were significant differences between conditions.(p = 0/00025; t-test paired = 7/83; df = 69).should be rejected. Second hypothesis Null hypothesis: the accountability of managers based on accrual-based accounting information should notbe better than the cash basis of accounting.hypothesis: the accountability of managers based on the accrual basis of accounting information than cash basis accounting is done the better. Table 2. Results of dependent t-test (paired) to compare responses based on cash accounting managers - managers' responses based on accrual accounting SIG df T Paired differences Variables ٠/٠٠٠ / Leaders meet on a cash basis - Leaders meet on the accrual basis of According to Table 10 shows the results of the first research to examine the hypothesis that the mean difference between the accounting basis 4.99 and 95 / 0 percent of the level of significance to estimate the difference between and was. Dependent t-test ( paired t -test ) showed that there were significant differences between conditions.(p = 0/00025; t-test paired = 7/40; df = 69).should be rejected. This assumption is based on accounting information based on research indicating that managers respond accrual basis of accounting rather than the cash it takes place will be confirmed And the null hypothesis based on managers' responses on the basis of accrual accounting information will not be better than the cash basis of accounting is rejected. CONCLUSIONS AND DISCUSSION The study, entitled "Effect of Change in Accounting University of Medical Sciences based on a cash basis to accrual basis of a complete treatment of the province is" years was conducted in the province. The overall objective of accounting from cash basis to accrual basis of variation in HamadanComparison of these two accounting systems at the University of the province heads, deputies and employees of financial affairs, Vjzyy specific objectives of the study were the words:comparison of management decisions on the accrual basis of 1125

4 accounting accrual basis of accounting.response compared with the accrual basis of accounting accrual basis of accounting managers.comparison of performance on the accrual basis of accounting to accrual basis of accounting.compared with the accrual basis of accounting university budgeting accrual basis of accounting.summary information describing the results : The results of the data showed that :Sex of respondents : Of all respondents, 50 patients ( 55 % ) were male and 38 of them ( 45 % ) women.the respondents of the totalrespondents, 15 patients ( 55 % ) directors, managers, and 63 patients ( 45 % ) of employees Finance.Education: Graduate of 20 patients ( 25 % ) Associate, 32 patients ( 50 % ) BA, 2 patients ( 4 % ), unknown in 10 patients ( 12 % ) MS and 3 patients ( 5 % ) is a doctor.field of respondents : Course No. 46 ( 1/65 % ), accounting for 10 cases ( 29 / 14% ) Management 6 ( 57/8 % ), 8 patients eco nomy ( 43/11 % ), other fieldsare HamyRespondents experience : experience of 25 cases ( 71/35 percent ) with 0-5 years of work experience, and 5 ( 14/7 %) with 5-10 years of work experience, 12 ( 14/17 %) with work experience years, and 8 patients ( 43/11 %) with work experience of years and 20 patients ( 57/28 percent ) with a work experience of 20 years and formed the Familiarity of respondents with the cash basis of accounting : total 2 ( 86/2 %) of the options very low, 4 ( 71/5 %) and low in 29 patients ( 43/41 %) and moderate in 24 ( 28/34 %) and high, 11 ( 71/ 15 percent ) were very familiarwith the cash basis of accounting.familiarity of respondents with the cash basis of accounting modified : 7 ( 10 %) were very low, 13 patients ( 57/18 %) wer e low, 27 ( 57/38 %) had moderate, and 16 patients ( 86/22 %)and 7 patients (10% ) were familiar to very high accru al accounting on a cash basis.familiarity of respondents with a basis of accounting accruals : total 2 ( 86/2 %) were very low, 1 ( 43/1 %) were low, with 32 cases ( 71/45%) and moderate in 24 ( 29/34 %) and 11 patients ( 71/15 %) and were very familiar with accrual basis ofaccounting.talk Drntayj hypothesis test:the paired t test was used to test the hypothesis. In this study, the scores of the two groups is used to determine the position of the non-homogeneous groups are not considered independent of this test is being used. The results of the test the following hypothesis is First test Paired t-test to compare the results of management decisions on the basis of accrual accounting is done better than a cash basis. Results indicate that the mean differences between the accounting basis 29/5 and 95/0 per cent level of significance for estimating the difference between 939/3 and 633/6, respectively. Dependent t-test (paired t-test) showed that there were significant differences between conditions(p= 0/00025; t-test paired= 7/83; df= 69). The research is based on the assumption of management decisions based on accrual-based accounting information than cash basis of accounting is done it will be approved And the null hypothesis based on management decisions based on accrual-based accounting information should not be better than the cash basis of accounting is rejected.this result suggests that the accrual basis of accounting in the management decisions that have a high capacity Therefore, the results should be interpreted in this way that the management decision, the accrual basis of accounting rather than the cash basis of accounting better, stronger, were more Vsmr. Verifying during several previous research, Abbas Zare (1385) in their study of the evaluation of the cash basis of accounting to accrual has been found that the accrual basis of accounting rather than the cash basis of better management accepts. Second test Accrual based accounting information management based on accountability towards cash based accounting is done the better.the research results indicate that the mean differences between the accounting basis 99/4 and 95/0 per cent level of significance for estimating the difference between 684/3 and 288/6, respectively. Dependent t-test (paired t-test) showed that there were significant differences between conditions.(p= 0/00025; t- test paired= 7/40; df= 69).This assumption is based on accounting information based on research indicating that managers respond accrual basis of accounting rather than the cash it takes place will be confirmed and the null hypothesis regarding the accountability of managers based on accrual accounting information based on the cash basis of accounting is better than rejected rejected is Implemented during the survey results with previous studies, Abbas Zare (1385) Khvdk h disertation research to evaluate the change in accounting basis from cash to accrual is paid. Understands the accrual basis of accounting rather than the cash basis for better management takes place. Arab M. Yazdi (1995) Khvdk h disertation research investigates the incremental information content of accrual flows Vnqdy company has found that the incremental information content of cash flows with respect to data streams is a commitment of a significant relationship between unexpected changes in cash flows unexpected changes in the operations of the stock market does not exist. 1126

5 CONCLUSION This study compares two cash accounting basis in both the commitment of management decisions, accountability of managers is much more effective than the cash basis of accounting. Therefore, we can replace this style accounting to cash accounting. REFERENCES Babajani J Governmental accounting and financial control., Second edition, Tehran: Allameh Tabatabai University Press Babajani J. assess the accountability of governmental accounting system, financial reporter, Ph.D. Dissertation, University of Allameh Tabatabai Conceptual Statement of accounting standards board, Number One financial reporter on the GASB, United States Barret P Managing in an Accrual Accounting Environment. Budget of Fiscal Statistics Administration, Bureau of the Assembly Budget Plan cash basis to accrual" Master's thesis, University of Hamedan Diamond J.2002.Performance Budgeting - is Accrual Accounting Required?, International Monetary Fund, Mark Graim W, brain o roark J Impact of performance Based budgeting on state fiscal performance,journal of Economic and Governance Paper Presented to RIPA.Conference(Canberra,26 February). Rafii A "Application of accrual basis in government accounting", audit Walters H, Tome JR performance Based Budgeting and performance Based Costing,Disam Journal of International security Assistance Management, Zarei A "Assessing the effects of municipal accounting system from 1127