Assets Accounting in Local Financial Manager Perspective: Interpretive Study

The accounting treatment of assets in local government tends to adopt an accounting system in the private sector is not as easy as imagined. The different characteristics governmental sectors as public organizations are in many ways different from private organizations lead to the views of the government in reporting its assets. This study aims to reveal the meaning of asset accounting understood by local financial management actor. In this study researchers used an interpretive paradigm with a phenomenological approach. The study shows that asset accounting is interpreted based on the source of funding, functions, and benefits of the asset. Meaning assets in the perspective of asset funding sources is understood as capital goods which only includes fixed assets. Based on the function, asset understood as economic assets and social assets. Benefits of economic assets are important, but social assets much more important in the effort to improve the welfare of society, for it is seen as an important asset to be reported.