The introduction of accrual accounting and budgeting in the city state of Hamburg: A qualitative analysis of the reform process and its benefits

Abstract In a multiple-step reform process, the city-state of Hamburg introduced a full accruals accounting and budgeting system. Based on a document analysis, this paper describes how the reforms were implemented, who the supporters were, and what the motivation behind their support was. It also analyses what benefits users of financial information have gained from the reforms by using responses resulting from semi-structured interviews. The authors find that the main actors were the state parliament and the state government, whose primary aim was to increase transparency about public resources and their consumption. These actors benefitted from the reforms because they now have information available that enables them to fulfil their respective roles within the budget process, and to achieve their political objectives. The authors conclude that under these conditions information use is encouraged and, thus, contribute to a better understanding of how reforms in public sector financial management succeed.