Received: 15 July 2020 Revised: 14 April 2021 Accepted: 27 April 2021 DOI: 10.1111/faam.12295 RESEARCH ARTICLE Cash to accruals accounting in British central government: A journey through time John Richard Edwards Business School, Cardiff University, Cardiff, UK Abstract Departmental and central government accountability to the Correspondence John Richard Edwards, Business School, UK Parliament was based principally on cash transactions Cardiff University, Colum Drive, Cardiff, CF10 for a period of over 300 years commencing with the Glori- 3EU, UK. Email:
[email protected] ous Revolution of 1688. Beginning in the second decade of the 19th century, recurrent proposals for the replacement of cash accounting by accruals accounting were founded on the conviction that ‘commercial’ accounting practices provided a more effective basis for performance measurement, finan- cial control and public accountability. This paper studies the progress of these initiatives through time, with Treasury resistance to the adoption of private sector-type account- ing practices by administrative departments recognised as a persistent and effective barrier to innovation up until the 1980s. KEYWORDS cash accounting, commercial accounting, new public management, resistance to change, Treasury 1 INTRODUCTION New public management (NPM) is predicated on a belief in the superiority of information systems developed in the private sector. More specifically, the idea which gained momentum in the 1980s was that modernisation of central government required ‘the adoption of business-like management and accounting instruments’ (van Helden, 2005,p. 9). To achieve that outcome, so the argument went, ‘traditional’ cash accounting systems needed to be replaced by This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.