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This research examines the financial accountability of local governments, based on the audited Regional Government Financial Statements. Data collected from the financial statements focussed on the village funds transferred from the Central Government to local governments in Papua Province, Indonesia. The regional authorities function as intermediaries to transfer the funds to villages. For analysis, the research applies a qualitative content analysis, using criteria from the Government Financial Accounting Standards (GFAS). The analysis reveals that financial reports still have many deficiencies; almost all reports do not utilise the GFAS. The study resolves that insufficiencies of reporting indicate the shortfall of financial accountability. [ABSTRACT FROM AUTHOR]

The proposal for a role for accounting information in globalization and internationalization automatically generates the response of convergence with international standards. However, although functional to the current model, this response does not provide the means to solve the country's serious social and political crisis partly caused by the way the country has decided to insert itself. Thus this theoretical work and review of the international relations, globalization and financial accounting and corporate responsibility literature suggests that accounting should assume a role different from the functional role of IFRS, showing instead, in a broader and deeper way, the current social effects of existing globalization and internationalization processes, qualifying public debate, and even contributing to new directions for such insertion to take place in a way that differs from the prevailing one. [ABSTRACT FROM AUTHOR]