Discussion paper on financial accounting in the context of the network economy
Summary: the network economy has had a significant impact on the accounting environment. In order to adapt to changes in the accounting environment, profound changes in accounting theory are inevitable. It also analyses the impact of the network economy on the accounting environment and on traditional accounting theory, taking into account the characteristics of the network economy, and then analyses the issues to be considered in developing network accounting in the age of the network economy and the corresponding policy responses。
Keywords: network economy; financial accounting; impact; development
Change in the accounting environment in the age of the network economy
(i) meaning of the cyber economy. The cyber economy is a new economic form based on computer and internet technology, with modern information technology at its core. Its essence is the gradual transfer of economic development centres to the network economy through the use of evolving and well-developed technological means, covering global production and marketing networks, regrouping factors of production, reducing costs, improving efficiency and widening markets。
(ii) the accounting environment in the network economy. The rapid growth of the network economy has led to dramatic changes in the traditional accounting environment, encompassing political, economic, cultural, legal, educational and other aspects. Accounting theory and practice cannot be separated from the accounting environment. From the meaning and characteristics of the networked economy, it is clear that the networked economy is a digital economy and a knowledge-based economy, and that this emerging pattern of economic development is bound to have a significant impact on human productive life and that the accounting environment will face profound changes。
Impact of the age of the network economy on financial accounting
(i) impact of the age of the network economy on accounting. For accounting, the development of the network economy has made corporate accounting more flexible and effective, moving further away from cost, labour and technology constraints towards integration and modernization。
1. In terms of costing. Using computer technology, and using costing methods, the accounting methods required are selected at the time of costing issuance and based on price movements, avoiding the impact of the first-in-first-out method on cost accounting during periods of greater price movements. Inventory can also be managed on an individual basis in normal times to overcome the disadvantages of the weighted average。
In respect of depreciation of fixed assets. The use of a comprehensive computer approach maximizes the advantages of the various approaches, taking into account seasonal, industrial differences and more realistic accounting for depreciation。
(ii) impact of the age of the network economy on accounting objectives. Accounting objectives in the context of the network economy should focus on:
1. Shift in focus of accounting objectives. Competition among enterprises in the new century will be a competition for knowledge, information and talent, elements that will become the core competitiveness of enterprises. The development of the network economy has gradually highlighted the importance of knowledge and information, so that the focus on accounting objectives in the context of the network economy should shift to reflecting knowledge and information。
2. Expansion of the target audience for accounting services. Under the web economy, investment information and accounting information are being synchronized in real time with highly developed networks, which allow potential shareholders to download useful information about businesses easily from the enterprise website or via search engines. Thus, the target audience for accounting objectives in the age of the network economy must transition from users of traditional accounting information to potential shareholders, and this will inevitably become an unstoppable trend。
3. The manner and content of the information provided are more extensive. Based on internet technology, users of accounting information have easy and fast access to accounting information through the enterprise website, and can search for it on their own, on their own initiative, more humanely and intelligently. The development of the networked economy has made the organizational structure of enterprises even more flat, and information is freely circulated within the enterprise and made available externally. Through the processing of accounting information systems, enterprises will be able to provide a wealth of information, including management information, accounting information and a range of useful information for decision-making。
(iii) impact of the age of the network economy on accounting reporting. In the age of the network economy, the development of traditional accounting reporting has focused on two main areas:
1. Formal development of accounting reporting. On the one hand, advances in computer technology have enabled users of accounting information to access corporate accounting reports through web pages and search engines. On the other hand, accounting reporting will shift from modeling to individualization, from passive acceptance of standardized accounting reports to private customization of accounting reports. Enterprises should establish databases containing information on their resources, talents, knowledge, etc. Shareholders and various potential investors can access the enterprise's original accounting information autonomously and quickly from the database, in accordance with their own competencies, and complete the processing of the information using intelligent software to facilitate decision-making。
2. Developments in the content of accounting reports. The growth of the network economy has led to important structural changes in enterprises. The flat structure of business organizations now facilitates the horizontal exchange of information across sectors, the speed at which information is transmitted, and the rapid exchange of management, business and accounting information through the accounting information system. In such cases, an enterprise accounting report is based on the accounting information system, which integrates and processes the various information flows of the enterprise and uploads them to the enterprise information database, providing external information on management, operations, etc. Thus, the inclusion of management information in accounting reports is bound to become a trend in the age of the network economy。
Iii. Problems and responses to the accounting of networks in the era of the network economy
(i) problems in developing network accounting
1. Online accounting theory is extremely poor. General accounting software has matured with competition for its own accounting processing software from congress planners such as tomoes group and goldfly, but the accompanying theory is extremely poor. First, accounting theory, methodology and practice are now largely rooted in traditional accounting models and are not applied in such a way as to take into account the impact of advances in computer and network technology on them; second, the computerization of accounting currently available on the market is a presentation focused mainly on the development process of accounting software, with simple analysis of theoretical and technical methods, many of which are already seriously lagging behind technological developments and do not provide theoretical guidance at all。
Network accounting data are less secure. Under the conditions of the network economy, changes in electronic vouchers and electronic books can leave no trace, making it difficult to identify financial responsibilities. Web-based blackx can also be used to steal and trade business accounting information and information, or even to tamper with accounting data, resulting in the disclosure of business secrets and significant economic losses。
3. Delays in our accounting legislation and systems. At present, accounting laws and regulations have been adjusted mainly by traditional accounting practices, which are not well adapted to network accounting relationships. It is impossible for businesses and users of accounting information to defend their rights and interests in the context of the network economy, and many cyber-infringements have difficult access to evidence. Moreover, the existing accounting systems do not meet the requirements of the network economy and are constraining the development of cyber-age accounting。
(ii) development of web-based accounting responses
Improved financial accounting theory in the context of the network economy. We need to take full advantage of the theoretical results of foreign research in this area and, on that basis, incorporate them and improve them in the context of our specific realities. The refinement of theoretical research should focus on the whole spectrum of economic development, taking full account of future circumstances and adapting to evolving circumstances. Accounting theory should be studied in the following areas: (1) improvement of the existing theory of basic accounting assumptions to preserve the original four underlying assumptions, with additions of transactional staggered assumptions adapted to the network economy, project operating assumptions, non-monetary and monetary assumptions, and comparative accountancy body assumptions; (2) transition of the centre of accounting recognition from tangible to intangible assets; (3) introduction of multiple accounting and recognition methods to maximize their respective advantages; and (4) increase in the number of assets measured at fair value。
Improved security of enterprise network information systems. (1) establish strict and well-established rules and regulations for the operation of web-based accounting and strictly enforce them. Establish privileges for operating system personnel and supervise their operation. Corresponding accounting data are regularly printed and stored to prevent data loss and manipulation. (2) strengthen equipment management. For external disks, cd-roms, pre-screen the virus and secure management. Specialized maintenance and maintenance of system equipment should be arranged for professionals. (3) the installation of a network firewall, the encryption of important documents and the periodic upgrading of the system to detect viruses。
3. Improving laws and regulations. Strengthen accounting legislation in the network economy and provide a sound legal environment for the development of network financial accounting as a means of promoting the network economy and safeguarding the interests of users of enterprise accounting information. To speed up the improvement of the relevant legal policy and to draw on the results of research from abroad, on the basis of which we will incorporate and improve it in the light of the country's specific realities, in order to develop a web-based accounting code that is appropriate to our national situation。
