The Road to Accrual Accounting in the United States of America

This information paper considers the experiences of the United States of America in its movement to accrual accounting. It outlines the development of administrative arrangements for formal standards setting over 70 years at the local, state and federal government levels in the US and highlights key factors shaping the standards setting structure. It also provides a detailed overview of the conversion to accrual accounting by state and local governments, the standards issued by the Governmental Accounting Standards Board to lead and support that conversion, and identifies key milestones in the conversion process.