Accrual accounting in the public sector. Evidences from Italian public universities

Objectives. The research aim is to analyze the Financial Statements both as a document and as a process, taking into account major critical elements that state universities have encountered in implementing the Italian accounting reform. Methodology. The methodology used for research is qualitative (Hair et al. 2003), in the perspective of proposing an updated concept concerning the modifications that have taken place within the accounting system of the Italian universities, which can be used by the scientific community and also by professional practitioners. Findings. The findings of the study outline some arguments about advantages and drawbacks of the introduction of accrual accounting in Italian public universities, whose implications are currently under development, so that different practical solutions are likely to affect them. Research limits. The research is focused on the financial statements without dwelling on the role of the other accounting tools. Practical implications. The paper offers a depiction of “the state of the art” in such shifting from cash to accrual accounting, debating on specific features and arguing about the foreseeable evolution of the accounting system in the investigated context. Originality of the study. The research is conceived as applied research and should provide useful insights to practitioners, managers and other actors of the public entities, thus being a “legitimate means for bridging the research–practice gap, through producing theoretical and practical research outputs” (Dumay and Baar, 2017).