Abstract:

This paper examines the perception of preparers and users regarding the usefulness of government financial statement in Indonesia. The measurement of the usefulness government financial statement is based on qualitative characteristics of accounting information. The questionnaire is distributed online and 100 valid responses will be analyzed as the sample of this study. The research method used is a descriptive study and mean difference test. Overall, the result shows that both preparers and users agree that government financial statement is useful for decision making. The analysis based on each qualitative characteristic show that preparers perceive that government financial statement is more useful that users in term of relevance, reliability, comparability and understandability. The results of this study can be used as an input for regulator to increase the trust of users to fully utilize accounting information presented in government financial statements for the decision making.