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A Critical Approach to Accounting in the Digital Era: Assessment of the Impacts of Industry 4.0 on Financials

  • Vildan Evrim AltukEmail author
  • Ali Kablan
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Abstract

The Information Age has led to the emergence of Industry 4.0 with rapidly developing technological devices making the data collection process much easier. Industry 4.0, which is also called the Second Machine Age, is expected to shorten the process, reduce margin of error and costs with the inclusion of self-learning robots in the production process. This shift will definitely have an impact on financial statements which depict the performance of a business organization. In addition, the items in a financial statement will undoubtedly change because of the use of virtual money, just-in-time production, and the decreasing role of humans in the production process being replaced by robots. In consequence, the financial analysis ratios will be modified in accordance with the changes in financial statements. This chapter focuses on the effects of Industry 4.0 on financial statements and financial statement analysis from a theoretical perspective. The possible effects of developing information technologies on financial statements and ratio analysis will be discussed.

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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Department of AccountingUzunköprü School of Applied Sciences, Trakya UniversityUzunköprüTurkey
  2. 2.Department of Banking and InsuranceUzunköprü School of Applied Sciences, Trakya UniversityUzunköprüTurkey

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