Objective - This research aims to reveal the failure of accrual accounting to create good governance and clean government in local governments in Indonesia. Additionally, the research seeks to examine the increase in accrual based rapid growth in Indonesia and the instance of corruption among government officials.

Methodology/Technique - In connection with this objective, the study explains the practical perspective of political intervention during the adoption of accrual accounting and examines the role of the community in the implementation of accrual accounting using a critical phenomenology method.

Findings - The findings of this study show that accrual-based accounting encourages deviant behaviour within the public sector and hence, good governance and clean government cannot be achieved. Accrual basis in this regard becomes a means for actors to conceal fraud by exploiting the weaknesses of accrual-based accounting to allow for creative accounting.

Novelty - This study uses a qualitative method to describe the implementation of accrual-based accounting in local governments in Indonesia, which is a new approach to this phenomenon.

Type of Paper: Empirical

Keywords: Accrual; Accounting; Public Sector; Good Governance; Clean Government; Indonesia.

JEL Classification: M10, M14, M19