Advertisement

Application of Blockchain Technology in the Integration of Management Accounting and Financial Accounting

  • Yanhong Wu
  • Xiao WangEmail author
Conference paper
  • 50 Downloads
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 1147)

Abstract

Blockchain is one of the most popular technologies nowadays. The birth of blockchain technology has solved the problem of reliability of accounting data. The accounting industry should seize the opportunity and actively use blockchain technology to promote industry innovation. At the same time, accounting professionals must also improve their professionalism to adapt to industry changes. The two major branches of modern accounting, financial accounting and management accounting, have become disconnected in practice. Both of them need to rely on different information processing systems for their actual operation. This is not economical for the enterprise, and it is also not conducive to management accounting to play its function of serving the economic management of the enterprise. To this end, the in-depth analysis of the differences between management accounting and financial accounting, and the introduction of “enterprise economic value added”, the unification of the theoretical differences between the two is of great significance to the development of the accounting field. This paper introduces the current research status of accounting information distortion and accounting fraud through the review and analysis of domestic and foreign literatures. Based on the research purpose of this article, it analyzes the characteristics and advantages of blockchain technology, and the impact of blockchain technology on the accounting industry The current status of research on the impact of issues such as research has determined the research theme, ideas, and methods. It also expounds the theoretical basis that will be used to study and build the credibility guarantee mechanism of the accounting information system based on blockchain technology, and then defines and divides the related concepts. This paper uses the basic principles of blockchain, information asymmetry theory, and moral hazard as the theoretical basis. Through questionnaire surveys, it is believed that the current accounting information system makes the original transaction information and the accounting information processing process unreliable, and the quality is worrying. The study found that only 14.5% of the qualified accountants in the experiment. The extreme shortage of accountants, especially senior accounting professionals, is the primary factor restricting the implementation of advanced management accounting methods in China on a large scale.

Keywords

Blockchain technology Management accounting Financial accounting Technology integration Accounting information system 

Notes

Acknowledgements

This work was supported by Innovation and Strengthening School Project: Practical Research on Improving Professional Judgment Ability of Accounting Majors (Project No.: CJ19CXQX022); College Students Innovation and Entrepreneurship Project: Research on Innovation and Entrepreneurship Development Mechanism of College Students under the Background of Internet Big Data (Project No.: CJQC2019005).

References

  1. 1.
    Berman, M.: New lease accounting and health care. Healthc. Financ. Manag. J. Healthc. Financ. Manag. Assoc. 70(5), 78–83 (2016)Google Scholar
  2. 2.
    Fratto, V., Sava, M.G., Krivacek, G.J.: The impact of an online homework management system on student performance and course satisfaction in introductory financial accounting. Int. J. Inf. Commun. Technol. Educ. 12(3), 76–87 (2016)CrossRefGoogle Scholar
  3. 3.
    Choi, J.J., Mao, C.X., Upadhyay, A.D.: Earnings management and derivative hedging with fair valuation: evidence from the effects of FAS 133. Acc. Rev. 90(4), 1437–1467 (2015)CrossRefGoogle Scholar
  4. 4.
    Elliot, V.H.: Institutional entrepreneurship and change: a contemporary history of the Swedish banking industry and its performance management systems. J. Acc. Organ. Change 12(2), 223–251 (2016)MathSciNetCrossRefGoogle Scholar
  5. 5.
    Daly, A.: The incremental informativeness of public subsidiary earnings. Int. J. Acc. Inf. Manag. 26(2), 272–290 (2018)MathSciNetCrossRefGoogle Scholar
  6. 6.
    Hillier, D., Hodgson, A., Ngole, S.: IFRS and secrecy: assessing accounting value relevance across Africa. J. Int. Financ. Manag. Acc. 27(3), 237–268 (2016)CrossRefGoogle Scholar
  7. 7.
    Dinh, T., Kang, H., Morris, R.D.: Evolution of intangible asset accounting: evidence from Australia. J. Int. Financ. Manag. Acc. 29(3), 247–279 (2017)CrossRefGoogle Scholar
  8. 8.
    Ghasemi, R., Mohamad, N.A., Karami, M.: The mediating effect of management accounting system on the relationship between competition and managerial performance. Int. J. Acc. Inf. Manag. 24(3), 272–295 (2016)CrossRefGoogle Scholar
  9. 9.
    Jung, W.O., Park, S.O.: Stock market response to the financial regulations in the mortgage-lending market in Korea. J. Int. Financ. Manag. Acc. 28(2), 105–130 (2017)CrossRefGoogle Scholar
  10. 10.
    Altman, E.I., Iwanicz-Drozdowska, M., Laitinen, E.K.: Financial distress prediction in an international context: a review and empirical analysis of Altman’s Z-score model. J. Int. Financ. Manag. Acc. 28(2), 131–171 (2017)CrossRefGoogle Scholar
  11. 11.
    Feng, M., Li, C., McVay, S.E.: Does ineffective internal control over financial reporting affect a firm’s operations? Evidence from firms’ inventory management. Acc. Rev. 90(2), 529–557 (2015)CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Guangdong Ocean University Cunjin CollegeZhanjiangChina
  2. 2.Jiangsu Polytechnic College Agriculture and ForestryJurongChina

Personalised recommendations