The Implementation of the Financial Accounting System in Algerian Institutions and the Need for Its Modernization A Field Study in Southeastern Algeria During the year 2025

Abstract

The rapid evolution of the global economic environment and the increasing convergence toward international financial reporting standards have intensified the need for modernizing national accounting systems to enhance transparency, improve financial reporting quality, and support economic decision-making. Within this context, this study aims to examine the reality of the implementation of the Financial Accounting System (SCF) in Algerian economic institutions, identify the requirements for its updating within the Algerian accounting environment, and assess the importance of such modernization in light of contemporary economic transformations. The study adopted a descriptive–analytical approach supported by an empirical field investigation targeting taxation and accounting specialists from both professional and academic backgrounds. A systematic sampling method was employed, whereby 120 questionnaires were distributed across three regions in southeastern Algeria (Ouargla, Hassi Messaoud, and Touggourt). After data collection and methodological screening, 80 valid questionnaires were retained for statistical analysis. Data were analyzed using descriptive statistics and one-sample T-tests to evaluate the study hypotheses. The findings indicate that Algerian economic institutions generally apply the Financial Accounting System; however, implementation remains uneven, with continued reliance on historical cost accounting and limited application of fair value measurement due to structural constraints within the financial and institutional environment. The results also reveal strong consensus regarding the necessity of updating the accounting system to align with international accounting developments, enhance financial transparency, and support integration into global markets. The study concludes that updating the Financial Accounting System constitutes a strategic reform imperative rather than a purely technical adjustment, requiring institutional modernization, professional participation, and the development of a supportive accounting environment capable of accommodating contemporary accounting practices