Investigating the Effect of Environmental Factors on Governmental Accounting Reform Process in Iran by Contingency Model

Any military transformation requires knowledge of environmental factors are influencing the system. Accounting system of government of Iran is no exception. Therefore the present study investigated the previous literature on this system toExplanation necessary reforms in public accounting to the adoption of accrual accounting and finally Through scientific research method, a contingency model, that is a simplified form of the international contingency model presented by Professor Lüder (FMR), to explain how environmental factors effects on innovation and reform process, has provided. Survey finding indicates the fact that government accounting is now on the verge of a fundamental transformation. Increasing demand for more information, after proposed reforms of public sector management, including legal requirements concerning operational budget, is the primary driver of this transformation. The model for predicting future trends of reform in Iran has also been used, to confirm the predictive power of the model is provided by the Lüder.