Abstract: “This study was conducted to identify the problem of implementing government accrual accounting system in the first year. The case study was conducted in Indonesia when Indonesia prepared government financial reporting based on accrual accounting in 2015. Indonesia government changed the accounting system and financial reporting from the old system, cash toward accrual basis, to the new system, accrual accounting basis, in 2015 to comply the regulation. Implementing a new system in government financial reporting system created a big problem. Indonesia was a country that had some accounting units which were about 24.000 accounting units. It was thought that the problem could be solved by designing good government policies and good action. Government stakeholder doubted whether Indonesia succeeded in implementing accrual basis for government financial reporting in the first year. Some experts predicted that the quality of government accounting became worse. The opinion of financial report”

Keywords: government accounting, accrual, problem, system, implementing