Research on the Influence of Informatization

For as long as businesses have existed, so has accounting. With time, it has become more complicated and detailed, but it is still a process of keeping financial accounts in order. Through accounting, or financial reporting, a system is set up to keep track of, maintain and audit the financial proceedings. Because accounting and financial reporting of a business is so important for its accuracy and in general, a lot of ethical, technological and legal concerns are involved. In this paper, we will look identify and explore the concerns of each of these.

All recorded data related to accounting can be managed under the accounting information system database. The confidential information in AIS must be available and protected with authorizations only each division should have access to. Each user has a personal identification and authentic password for authorization to the system and departmental data access. Some AIS also has security resets to users so their access isn’t compromised. This eliminates risk associated with internal data abuse and unauthorized department access. AIS have virus, disaster recovery and system updates. A virus will be a disaster for AIS. Whether internal or external, a threat can destroy a system data. Information security has keep accounting systems protected from

China has more than 5000 years of history, and was a mysterious country to most occidental people. Because of the influence of the culture and history, China use to be closed to foreign countries until 1979. Chinese people have their own accounting rules that are totally different from occidental countries’ accounting rules. With the development of China’s economy and the implementation of the reform and opening policy, Chinese economic system became from planning economy to free- market economy, more and more occidental countries focus on China -a fast developing country. More and more international cooperation and trade appeared. In order to get the best investment, to know well Chinese accounting system

From the early release of the International Accounting Standards, the most measurements are in accordance with the historical cost basis, such as inventory, fixed assets and other criteria. One important reason is that these assets are measured at historical cost in accordance with both demands of the reliability and relevance. However, with the rapid development of economic in recent years, the greatly upgrading technology and innovation business bring out new challenges of traditional historical cost measurement. In particularly, the financial instruments, especially the derivative financial instruments, become complexity. Some financial instruments create contractual rights or obligations before the transactions actually occur. However, rewards and risks have been shifted. In order to enable users of accounting information to know the influence of the business which has been taken place and currently operating, the information of transactions need to be recognised and measured. However, the

One of the most significant purposes of General Purpose Financial Reports is providing useful and valuable accounting information, which is an important basis to making appropriate decisions for information users. The quality of accounting information is directly related to information users in decision-making and its consequences. Hence, the four qualitative characteristics, namely Understandability, Relevance, Reliability and Comparability are set out in the conceptual framework to ensure that information users can make the right decisions. This essay will definitely and intensively evaluate and examine the four qualitative characteristics of accounting information.

Since the society has become progressively dependent on networks for business, the management of company’s information online has developed into an issue to be concerned. AIS, which is short for Accounting Information System, is not merely related to accounting information management as the business develops around the world. In the various explanations of AIS in the Lecture 1, p12130 Accounting Information System, presented at the University of Nottingham Ningbo by Trevor Bayley, Vaassen (2002) defined AIS as provides information for decision-making and accountability to internal and external stakeholders providing the right conditions for decision making and ensures that no assets illegitimately exit the organisation. In terms of

Accounting information system is a transaction based information system as it deals with the economic events taking place in the enterprise. Most of these economic events take place in the course of day-to-day operations of the business enterprise. In the past, ac¬counting information systems were designed primarily for report-ing to statutory bodies such as tax authorities, regulatory authori¬ties and investors. Very little information was generated to meet the information needs of managerial decision making. The focus of accounting information has changed. It focuses more on generation of information for use in managerial decision making process. An accounting information system that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources.

Accounting is the art of measuring and communicating financial information. To maintain uniformity and consistency in preparing and maintaining books of accounts, certain rules or principles have been evolved. These rules or principles are classified as concepts and conventions. One of the important concept in accounting is “Measurement” (Mattessich, 1977)

A business environment changed rapidly because of the unstable factor like devaluation of Malaysia Ringgit in these few months. The market value of current value accounting better presents the economic reality compare with the historical cost accounting. Current value accounting provides useful and relevant information to the users even the measurement of current value is less liable because current value is not recorded based on actual transaction. It may be subjective to measure a current value. We can easier to view the assets or liability are at risk or not through the financial statement in current value accounting like the value of securities. However, current value accounting cannot provide the same relevant and reliability in case of measuring the

There exists a perpetual need for businesses to have a reliable and accurate accounting system irrespective of the nature of business whether it is manufacturing concern or an organization belonging to a service industry. An accounting information system is not optional but mandatory. To understand why an AIS (accounting information system) is so vital for an organization, it is necessary to first have a comprehension of what actually an accounting information system is.

There are sure advantages, which given by the utilization of Contemporary administration bookkeeping framework in the business ventures. It helps the clients in different routes by filling their different needs and needs later on (Ashworth and Perera, 2015, p.89). It picks up an upper hand over others keeping in mind the end goal to endeavor in the market. The idea of contemporary administration bookkeeping helps an awesome arrangement in enhancing the productivity of the specialists and in the meantime enhances the client esteem. The working expenses are being lessen and the strategies of the organization are analyze with a specific end goal to serve the requirements and advantages of the organization. The above expressed idea expands the effectiveness of the organization in the long haul (Heagney, 2016, p.96). The quality enhances later on. The idea of action based costing assumes a huge part in this perspective. This idea takes care of the different needs and requests of the client and gives openings keeping in mind the end goal to meet them. Likewise, the idea of key cost administration assumes an adverse part in this impact. It advances the hypothesis of separation of its items from its rivals to make due in the economic situation.

Then computers were implemented, and Excel made accounting easy. Still, Excel needs for the user to create spreadsheets required for accounting. Accounting evolved in the last years from manual accounting to computerized systems. Excel, classified as a manual system in business, is not reliable for real financial statements. Nowadays, financial statements require accurate information for managerial accounting and Excel is not one hundred percent efficient. The software allows mistakes, provides the manipulation of the accounts and makes it difficult to monitor or supervise the real status of companies.

The accounting cycle is the process by which companies produce their financial statements for a specific period of time. It consists of ten steps, each step depending on the information generated in the previous step. Any business that fails to follow the steps of the accounting cycle, or omits any piece of vital information, risks ending up lost in a wave of inaccurate numbers or accounts that don’t balance correctly.

To begin with, measurement is an essential part in every human’s daily activity. People apply measurements in Mathematics, in Science, in calculations, in Economics, or in their typical calculation for the simplest estimation of market price when buying any products or services. Measurement’s role in Accounting is by then not any less than a vital role. Indeed, all transactions or assumptions provided in the Accounting Information Systems are presented by numbers, which are results of the measurement process.

“There is no business like show business, but there are several business like accounting.” – David Letterman (AZ Quotes) Accounting is the systematic and comprehensive recording of a financial transaction pertaining to a business. It also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities. Accounting is one of the main key function for any business. This paper talks about the history of accounting, the pros and cons of accounting, how to prepare for accounting field.