Professional Doctorate Thesis

Accrual Accounting Reform in Saudi Arabia

by Dr. Saad Hussain Alshahrani

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Research Overview

This study, titled “Accrual Accounting Reform in Saudi Arabia,” examines the transition from cash-based to accrual-based accounting within Saudi government entities as part of the broader Vision 2030 reform agenda. It emphasizes that accrual accounting provides a more comprehensive and accurate representation of financial performance by recognizing revenues and expenses when they are incurred rather than when cash is exchanged. The reform is positioned as a critical step toward enhancing transparency, accountability, and fiscal sustainability in public financial management.

The research evaluates the impact of this transformation across key areas, including financial reporting quality, expenditure efficiency, asset and liability management, internal controls, and decision-making. It finds that accrual accounting has significantly improved the completeness and reliability of financial statements, strengthened budget control through better tracking of commitments and obligations, and enhanced asset and liability visibility. Additionally, the reform has improved auditability and risk management by requiring more detailed documentation and standardized processes aligned with international standards such as IPSAS.

Despite these advancements, the study identifies ongoing challenges, including data gaps, limited technical expertise, system integration issues, and resistance to organizational change. It concludes that while the reform has made substantial progress in modernizing public financial management in Saudi Arabia, continued investment in capacity-building, system integration, and policy refinement is necessary to fully realize its benefits. Overall, the transition is presented as a transformative initiative that strengthens governance, supports performance-based budgeting, and aligns Saudi Arabia with global best practices.