link chuẩn của w88 relationships among accounting, accounting information system and Blockchain technology

ABSTRACT:

Since link chuẩn của w88 introduction of link chuẩn của w88 Internet in link chuẩn của w88 early 1990’s, link chuẩn của w88 adoption of Internet technologies grown exponentially. Most new echnological applications are either used or developed by using Internet technologies. Blockchain technology, which was used to invent link chuẩn của w88 best-known crytocurrency Bitcoin. link chuẩn của w88Blockchaintechnology has significantly affected  accounting. This article presents an overview on link chuẩn của w88 Blockchain technology and analyses relationships among accounting, accounting information system and link chuẩn của w88 Blockchain technology.

Keywords: Accounting, accounting information system, Blockchain.

1. Introduction

Blockchain technology has experienced exponential growth and innovation is driven by developers, start-ups and enterprise in all areas. link chuẩn của w88 World Economic Forum has listed blockchain as one of link chuẩn của w88 top ten emerging technologies of 2016 (CMA U Lakshmana Rao and Pandurangiah 2018). Major changes in established business systems can take place very quickly in our times. Those business that are not prepared suffer irreparable damage. Similarly, those in higher education should also be prepared for this upcoming major shift in business information systems, not just in link chuẩn của w88 MIS field, but in accounting, banking, finance, economics, law, and beyond. People across link chuẩn của w88 world have been demanding more “transparency” in corporate and government dealings, and blockchain public ledgers can also satisfy this global need (Brandon 2016). Distributed Ledger Technology, link chuẩn của w88 so-called Blockchain, is revolutionizing link chuẩn của w88 Internet. On link chuẩn của w88 other hand, link chuẩn của w88 Internet itself is changing, following link chuẩn của w88 requests of those who wish that it became not only a place of information exchange, but also a virtual place to exchange actual values. Blockchain is set to be one of link chuẩn của w88 most disruptive technologies to impact a variety of industries. One of these industries is accounting, with link chuẩn của w88 introduction of blockchain link chuẩn của w88 way that transactions are processed, retained and data audited will be vastly different. To understand these impacts we have to first examine link chuẩn của w88 history of Blockchain technology (Iansiti and Lakhani 2017).

Today, link chuẩn của w88 information about blockchain technology has attracted a lot of attention. However, one thing that people may know less about is that blockchain technology has a great influence on Accounting and is certainly a technology trend that employees in Finance - Accounting math cannot be "ignored" in link chuẩn của w88 future.

2. Overview

2.1. Blockchain Technology

Currently there are many different documents about Blockchain. In this article, link chuẩn của w88 author will summarize some concepts to help us better understand Blockchain and its activities. Blockchain has been enabled by a set of modern technologies including link chuẩn của w88 internet, open-source peer-to–peer protocols (BitTorrent), rapid digital communications, enormous computing power, and modern cryptography. It is an electronic shared, replicated, distributed (organizationally and geographically), and decentralized transactional file. CIA is a central trait of a blockchain since a transaction is committed in real time to link chuẩn của w88 blockchain and connected via a hash to all those transactions that came before it. link chuẩn của w88 transactions persist forever and cannot be deleted nor modified. To ensure availability, link chuẩn của w88 entire block chin of transactions is continuously replicated across many servers so that there is no central point of failure. Privacy is guaranteed by rigid credential checking techniques and protected through modern encryption (Brandon 2016).

Blockchain is a technology that is based on distributed ledgers.  link chuẩn của w88 ledgers consist of “blocks” of information that are tied together cryptographically.  This allows multiple parties to view link chuẩn của w88 contents inside link chuẩn của w88 block while what is inside link chuẩn của w88 block remains protected. Common characteristics of blockchain include real-time distribution, authentication of each block by consensus (use of cryptography), and validation of each block. It is difficult to alter link chuẩn của w88 historical records as each transaction and addition is time stamped. link chuẩn của w88 blockchain also includes programmability to execute certain transactions without further action by users (U.S. House).  link chuẩn của w88 blockchain is further described as “a digital ledger of economic transactions that is fully public, continually updated by countless users, and considered impossible to corrupt.  It is a list of continuous records in blocks” (Carlozo 2017).

In link chuẩn của w88 study of CMA U Lakshmana Rao and Pandurangiah (2018) said that, Blockchain is a kind of distributed database and is one of link chuẩn của w88 Distributed Ledger Technologies (DLT) where data is recorded, stored and sorted into blocks. Unlike centralized database, in Blockchain data is stored in various participating nodes. Blockchain is an enumerated list of records containing information. link chuẩn của w88 individual enumerated records are called blocks and chained together using a cryptographic hash that is linked to previous block. Together these blocks are called as distributed ledger. link chuẩn của w88 origin of link chuẩn của w88 block is called genesis block and is link chuẩn của w88 starting point of link chuẩn của w88 chain. link chuẩn của w88 data stored in Blockchain are immutable which means blocks created once cannot be altered without having cascading effect on previous blocks. Since it is distributed ledger technology, Blockchain facilitates peer-to-peer transaction without involvement any other third party. A Blockchain is a type of distributed ledger can contain financial or non-financial transactions replicated across link chuẩn của w88 network on peer-to-peer network using cryptography. Bitcoin is a type of unregulated digital currency know as cryptocurrency. Whereas, Blockchain is a distributed ledger technology that enables and maintains Bitcoin transaction ledger over peer-to-peer network without central authority. Distributed Ledger Technology (DLT) is a technological protocol that enables data to be exchanged directly between different contracting parties within a network without link chuẩn của w88 need for intermediaries. link chuẩn của w88 network participants interact with encrypted identities (anonymously). Each transaction is coded and added to an immutable transaction chain. This chain is distributed to all network nodes (ledgers), thus preventing link chuẩn của w88 alteration of link chuẩn của w88 chain itself (Iansiti and Lakhani 2017).

Blockchain technologywas developed to aid in link chuẩn của w88 operation of cryptocurrencies, most notably Bitcoin. It essentially is a new way of storing information online securely and with greater transparency. Most online information is currently stored on servers, including cloud technologies. Data using this model is only as secure as link chuẩn của w88 server that it is located on as link chuẩn của w88 entirety of data is placed in a single location. Data on servers are also not transparent as they can only be viewed by users that have access to link chuẩn của w88 server. Blockchain technology utilizes a different method of storing data, instead of storing link chuẩn của w88 entire data set on a single server, data is fragmented into blocks stored over multiple servers using a peer-to-peer network. Each block of link chuẩn của w88 data is verified and then assigned to a server where it will be stored. Blocks that relate to link chuẩn của w88 same set of data is strung into a chain. Data is secure as multiple servers in multiple locations hold data and it is practically impossible to hack all link chuẩn của w88 necessary servers to obtain link chuẩn của w88 full set of data. Further, data contained in each block is inherently resistant to modification and can only be altered by accessing all data in link chuẩn của w88 entire chain. link chuẩn của w88 inability to access link chuẩn của w88 entire chain by an unauthorized person creates a safe environment and leads to data being widely viewable, which in turn leads to greater transparency as data can be viewed but not altered by multiple users (David Rose and Volschenk 2018).

Figure 1: How Blockchain works

Source: (CMA U Lakshmana Rao and Pandurangiah 2018)

2.2. Blockchain and accounting

Blockchain is an accounting technology, which deals with transfer of ownership of assets and maintaining ledger of accurate financial information.  Use of Blockchain can increase link chuẩn của w88 potential of accounting profession by reducing link chuẩn của w88 cost of maintaining and reconciling ledgers. This may be a threat to accountants as automated reconciliations take away link chuẩn của w88 work of accountants.  But, Blockchain empowers link chuẩn của w88 accountants that an asset exists with proven authenticity.  However, link chuẩn của w88 economic reality or economic value has to be validated by accountants (CMA U Lakshmana Rao and Pandurangiah 2018).

Blockchain technology may represent link chuẩn của w88 next step for accounting: instead of keeping separate records based on transaction receipts, companies can write their transactions directly into a joint register, creating an interlocking system of enduring accounting records. Since all entries are distributed and cryptographically sealed, falsifying or destroying them to conceal activity is practically impossible. To explain link chuẩn của w88 notion of Blockchain-based accounting some researchers use link chuẩn của w88 term Triple-Entry Accounting which is described as an enhancement to conventional double  entry accounting where link chuẩn của w88 accounting entries of link chuẩn của w88 involved parties are cryptographically sealed by a third entity (link chuẩn của w88 Blockchain). (Grigg 2005, Mills, Wang et al. 2016)

Fig. 2.  Centralized vs Distributed Ledger

Source:(Bansal and Batra 2018)

Blockchain is anaccounting technology, which deals with transfer of ownership of assets and maintaining ledger of accurate financial information. Use of Blockchain can increase link chuẩn của w88 potential of accounting profession by reducing link chuẩn của w88 cost of maintaining and reconciling ledgers. This may be a threat to accountants as automated reconciliations take away link chuẩn của w88 work of accountants. But, Blockchain empowers link chuẩn của w88 accountants that an asset exists with proven authenticity.  However, link chuẩn của w88 economic reality or economic value has to be validated by accountants (CMA U Lakshmana Rao and Pandurangiah 2018). Blockchain Technology can be potentially used in accounting and audit function.  Blockchain ensures traceable audit trails, automated accounting and reconciliations, tracking of ownership of assets, authentication of transactions.  Blockchain can be used as a source of verification for reported data.  link chuẩn của w88 days of sample based will soon be a history, as link chuẩn của w88 auditors may soon use Blockchain Technology to test link chuẩn của w88 entire population of transactions of a period under audit.  This will extensively improve link chuẩn của w88 level of assurance (CMA U Lakshmana Rao and Pandurangiah 2018).

According to Blockchain accounting applications are sometimes called “triple entry bookkeeping”. In double entry bookkeeping, every transaction is entered twice: as a debit and as a credit. With blockchain there are three entries that occur: link chuẩn của w88 debit, link chuẩn của w88 credit, and link chuẩn của w88 cryptographic signature of link chuẩn của w88 transaction. There are really three parties also, such as: link chuẩn của w88 buyer, link chuẩn của w88 seller, and link chuẩn của w88 blockchain network. With link chuẩn của w88 blockchain, all of link chuẩn của w88 transactions exist on many networked computers instead of just one mainframe (or server farm) with backups. link chuẩn của w88 concept is similar to that of link chuẩn của w88 US DOD Arpanet that was link chuẩn của w88 foundation for link chuẩn của w88 Internet. A distributed network with many servers and communication lines was built so that link chuẩn của w88 loss of one (or a few) would not take link chuẩn của w88 entire system down. For link chuẩn của w88 accounting application it is possible that link chuẩn của w88 account balance part of link chuẩn của w88 application data would remain in a relational form on link chuẩn của w88 organization’s mainframe or server and link chuẩn của w88 transactions would be placed in a NoSQL blockchain, as illustrated in link chuẩn của w88 figure 3 below.

Figure 3:  Blockchain is secured in terms of compatibility of has string

(Source: Brandon 2016, Sarkar 2018)

However, link chuẩn của w88 advantages of blockchain in accounting go far beyond just providing a more efficient and secure IT process for large organizations. Both internal and external accounting audit procedures involve confirming transactions and balances that are stated on link chuẩn của w88 organization’s financial books. However, link chuẩn của w88 transactions on link chuẩn của w88 blockchain ledger can be confirmed as true and accurate without having a third party auditor confirm these transactions. This accounting application of blockchain can be extended beyond a single company. Now consider this on a countrywide or even worldwide basis for all organizations and their vendors and trading partners. If there was just one blockchain, instead of one for each company, then link chuẩn của w88 redundancy reduction and cost/time savings would be huge. Essentially blockchain provides an automatic capability to verify accounting transactions between multiple business partners while maintaining data privacy. Conceivably external audits could be fully automated, and thus, link chuẩn của w88 role auditors would be significantly reduced and perhaps even completely eliminated. link chuẩn của w88 Depository Trust and Clearing Corporation is already testing a blockchain distributed ledger in short term lending markets to reduce risk and allow financial firms to share information in real time. (Pilkington 2015)

Blockchain had put an end to link chuẩn của w88 traditional methods of billing, documentation, processing, registering, inventory systems, and paying for business. link chuẩn của w88 technology will allow companies to record both sides of a transaction simultaneously in a shared book in real time, rather than keep audited records of financial transactions in separate privately created databases or accounting books. link chuẩn của w88 need for traditional double-entry accounting will disappear, as link chuẩn của w88 legality of accounting will be fully automated. Therefore, consideration of issues related to link chuẩn của w88 use of link chuẩn của w88 blockade accounting infrastructure in link chuẩn của w88 block is important and relevant (Aleksy Kwilinski 2019).

2.3. Blockchain and accounting information systems

Today, companies are trying to implement Blockchain into their Enterprise Resource Planning (ERP) systems, particularly for tasks such as procurement and supplier management. Blockchain ledger-based technology can simplify link chuẩn của w88 procurement process because it enables secure recording of transactions in a way that can lead to unprecedented transparency and increased operational efficiency (Tysiac 2017).  Potekhina and Riumkin (2017) said that Real-time Blockchain Accounting System (RBAS) is a software solution that enables transactions of currency, financial derivatives, and other digital documents between two or more counterparts, stores link chuẩn của w88 transaction data in cryptographically protected blocks whose integrity is verified through link chuẩn của w88 process of mining, and allows link chuẩn của w88 composition of financial statements at any time. For companies and their stakeholder to obtain all link chuẩn của w88 benefits provided by link chuẩn của w88 technology it is necessary that a RBAS possesses link chuẩn của w88 following properties:fist, Transparency - link chuẩn của w88 transactions must visible in real-time as it is link chuẩn của w88 case with bitcoin;second, Immutability - there must not be a programming possibility to change any data once they were entered, to ensure this, link chuẩn của w88 company using link chuẩn của w88 system must not control link chuẩn của w88 mining power;Third,Accessibility – link chuẩn của w88 data must be easily accessible to a broad range of stakeholders. Financial statements are prepared at regular intervals and sum up what has happened in a firm’s ledger throughout a certain period. An auditor then issues an opinion on link chuẩn của w88 accuracy of link chuẩn của w88 financial statements. Outsiders, such as investors and credit risk managers, have to trust both that link chuẩn của w88 auditing is thorough and unbiased and that link chuẩn của w88 firm has not given false information to link chuẩn của w88 auditor. That is, link chuẩn của w88 concept of trust is critical in both link chuẩn của w88 preparation of link chuẩn của w88 financial statement and in link chuẩn của w88 auditing process.  This is where link chuẩn của w88 Blockchain technology behind link chuẩn của w88 bitcoin can play an integral role.

3. Discussion and Conclusion

It may be remarked that while link chuẩn của w88 landscape for Blockchain technology is still in its infancy, its potential is transformational. Blockchain transaction tools offer link chuẩn của w88 greatest opportunities for change in various accounting mechanisms, and creating a new platform to reshape link chuẩn của w88 accounting and accounting information systems. Blockchain is arguably link chuẩn của w88 most discussed technology of this decade and there is every reason for that. As a sort of indestructible and incorruptible ledger, blockchain accounting offers to record data in a way which can be simultaneously accessible by auditors and regulators. This could potentially reduce link chuẩn của w88 need for accountants to record transaction in separate locations with almost no way to consolidate and validate link chuẩn của w88 same.Blockchain accountingis capable of providing a much more transparent and secured accounting framework to track transaction and assets. Hence traditional accounting is at link chuẩn của w88 verge of a disruption which will redefine link chuẩn của w88 role and need of accountants in an industry. Instead of record keepers, accountant will soon require to become interpreters and direct facilitators in decision making. Blockchain came to link chuẩn của w88 world’s attention thanks to its role as link chuẩn của w88 underlying technology behind Bitcoin, link chuẩn của w88 most popular cryptocurrency. However, Blockchain has much farther reaching possibilities than digital currency. Blockchain, a distributed ledger technology, has link chuẩn của w88 potential for applications in link chuẩn của w88 stock market, banking, and beyond. One industry that is sure to see disruption from Blockchain is accounting. From audit to bookkeeping, Blockchain has link chuẩn của w88 potential to improve efficiency, reporting, and data access in a way never before seen.

REFERENCES:

1. Aleksy Kwilinski (2019). Implementation of blockchain technology in accounting sphere.Academy of Accounting and Financial Studies Journal, 23(2), 2-3.
2. Brandon, D. (2016). link chuẩn của w88 blockchain: link chuẩn của w88 future of business information systems.International Journal of link chuẩn của w88 Academic Business World, 10(2),33-40.
3. Carlozo, L. (2017). What is blockchain?Journal of Accountancy, 224(1), 29.
4. Rao, U. L., & Pandurangiah, S. (2018). Blockchain Technology Will it Disrupt or Discipline Accountants?link chuẩn của w88 Management Accountant Journal, 53(6), 42-46.
5. David Rose, & Volschenk, E. (2018). Blockchain & Accounting.https://vincents.com.au/blockchain/7. 7.
6. Grigg, I. (2005). Triple entry accounting.Systemics Inc journal, 15(4).https://www.researchgate.net/profile/Ian_Grigg/publication/308640258_Triple_Entry_Accounting

/links/57e99c4408aed0a291304588/Triple-Entry-Accounting.pdf

7. Iansiti, M. and K. R. Lakhani (2017). link chuẩn của w88 truth about blockchain.Harvard Business Review, 95(1), 118-127.

8. Mills, D. C., Wang, K., Malone, B., Ravi, A., Marquardt, J., Badev, A. I., . . . Kargenian, V. (2016). Distributed ledger technology in payments, clearing, and settlement. https://globalintelhub.com/wpcontent/uploads/2013/07/2016095pap.pdf

9. Pilkington. (2015). Research Handbookd on Digital Transformations:Edward Elgar Publishing. ISBN 1784717762.

MỐI QUAN HỆ GIỮA KẾ TOÁN, HỆ THỐNG THÔNG TIN KẾ TOÁN

VÀ BLOCKCHAIN

ThS. Nguyễn Cao Quang Nhật

Khoa Quản trị Kinh doanh, Trường Cao đẳng Sonadezi

ThS. Nguyễn Văn Dũng

Khoa Tài chính Kế toán, Trường Đại học Lạc Hồng

TÓM TẮT:

Kể từ khi Internet ra đời vào đầu những năm 1990, việc sử dụng Internet đã tăng lên theo cấp số nhân. Hầu hết các ứng dụng công nghệ mới đều được sử dụng hoặc được xây dựng dựa trên công nghệ Internet. Trong thời gian gần đây, công nghệ Blockchain đã thu hút sự chú ý trên thế giới với vai trò là công nghệ cơ bản của loại tiền điện tử Bitcoin. Công nghệ Blockchain có ảnh hưởng lớn đến Kế toán. Bài viết này trình bày nội dung cơ bản của công nghệ Blockchain và phân tích mối quan hệ giữa kế toán, hệ thống thông tin kế toán với công nghệ Blockchain.

Từ khóa: Kế toán, hệ thống thông tin kế toán, Blockchain.