Implications of Next Step Blockchain Applications for Accounting and Legal Practitioners: A Case Study

Smith, Sean Stein

doi:10.14453/aabfj.v12i4.6

Cited by 27 publications

(22 citation statements)

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“…A total of seven focus on audit particularities, while 11 approach both accounting and auditing as parts of the vast accounting profession. In total, seven refer to other sectors connected to accounting and auditing, for example, law (Smith, 2018a) and finance (Fanning and Centers, 2016). Papers focusing on more closely related areas include internal audit (Rooney et al , 2017; Gomaa et al , 2019), control and fraud detection (Dai et al , 2017; Rückeshäuser, 2017), smart contracts (Rozario and Vasarhelyi, 2018; Rozario and Thomas, 2019), financial management and accounting information systems (AISs) (Gomaa et al , 2019; Sheldon, 2019) and blockchain's respective impacts on financial services and transactions with cryptocurrency (Fanning and Centers, 2016; Zadorozhnyi et al , 2018).…”

Section: A Glimpse Into the Evolution Of The Literaturementioning

confidence: 99%

“…However, practically and empirically, the implications of this technology have still not been sufficiently researched (Fanning and Centers, 2016; Dai and Vasarhelyi, 2017; Kokina et al , 2017; O'Leary, 2017; Chedrawi and Howayeck, 2018; Kozlowski, 2018; Tan and Low, 2019). Therefore, more empirical evidence is required regarding blockchain's benefits and challenges for our two fields of interest, accounting and auditing (Dai and Vasarhelyi, 2017; Smith, 2018a; Carlin, 2019; Sinha, 2020).…”

Section: Introductionmentioning

confidence: 99%

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Managing change with and through blockchain in accountancy organizations: a systematic literature review

Tiron-Tudor

Deliu

Farcane

et al. 2021

JOCM

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PurposeThe purpose of this paper is to facilitate blockchain innovation immersion in accountancy organizations by providing tools that allow organizations to manage the change. The paper approaches blockchain technology (BT) through the lens of organizational change management, with a specific focus at the organization level.Design/methodology/approachA hybrid systematic literature review of relevant literature is presented based on recent research papers published in highly ranked scientific journals that capture how accounting organizations might manage the changes induced by BT.FindingsThe findings of the review indicate that implementing BT requires some new modus operandi. From individual behavior to organizational structure, the advantages of blockchain must be emphasized in all accounting and auditing organizations. Managers should forge a plan that takes advantage of employees' skills, competencies and talent, implementing forward-looking company procedures and actively deciding how to navigate workplace dynamics, personalities and responsibilities.Research limitations/implicationsThe main limitations of the study refer to the infancy of the BT and require the development of knowledge through future studies to allow a more accurate outline of the overall picture and a detailed one of the BT phenomena with applicability to accounting and auditing. At this stage, it is not yet possible to fully envision the implications of BT on professional accounting and auditing organizations. However, there will be clients who adopt BTs, so firms should work with them to understand BT-based accounting and auditing applications. That is, accounting and auditing organizations should expand their skills and knowledge to anticipate and meet clients' needs.Practical implicationsIn a constantly digitalizing world, the traditional accounting and educational environment is changing but not quickly enough to meet the requirements of a blockchain accounting system yet. For this reason, practical implications on the daily activities of the organizations and the restructuration of their internal architecture have been revealed in this paper.Originality/valueThe paper approaches blockchain using the lens of organizational change management with a specific focus on the accounting and audit organizations, and it proposes solutions to cope with the arising technological challenges. A challenge itself is the implementation of blockchain, especially when an entity is not ready for the process. Therefore, the SWOT analysis elaborated in this paper and focused on the accounting and auditing firms is an element of novelty and at the same time, a helpful tool highlighting the main strengths, weaknesses, opportunities and threats of this technology, supporting organizations in assessing how ready they are for its adoption. The research on blockchain in accountancy organizations is still necessary for at least seven key areas which have been proposed and detailed at the end of the paper, bringing in this way clarity in regards to the most endorsed avenues for future research directions.

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Section: A Glimpse Into the Evolution Of The Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Managing change with and through blockchain in accountancy organizations: a systematic literature review

Tiron-Tudor

Deliu

Farcane

et al. 2021

JOCM

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“…On a theme of emerging technologies, Talukder (2019) explores whether the individual business leader's personal comfort with technology (their use of a mobile phone, for example) will influence the wider adoption of technology of the business. Also on the theme of the challenges of new technology, Stein Smith (2018) discussed the implications of blochchain and cryptocurrency use for auditors into the future. Talukder, Quazi and Sathye (2014) also discussed developments in technology as regards banking in Australia and Prabowo, Hamdani and Sanusi (2018) discussed social media technology's influence on the anti-corruption movement in 1 University of Wollongong, Australia 2 University of Canberra, Australia Indonesia.…”

Section: To 2019 In Review In the Australasian Accounting Business Amentioning

confidence: 99%

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2019

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“…Accounting professionals will need to be able to deal with new emerging business issues, like for example recording bitcoin operations (or cryptocurrency in general). There is potential for creating new opportunities for motivated professionals to offer consulting services related to dealing with various types of cryptocurrencies or to perform the role of a professional technology consultant related to accounting and auditing [13].…”

Section: Introductionmentioning

confidence: 99%

Specifics of Cryptocurrencies from an Accounting, Tax and Financial View in a Globalized Environment

2021

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Research background: With the advancing entrance of digital technologies into all areas of private and business life in the past 10 years a new digital asset referred to as virtual currency or cryptocurrency had been invented. This virtual currency is not yet regulated in most countries and there is a need to establish a legal framework for accounting, taxation and recording of financial transactions so the treatment of transactions with these digital assets is the same across the globalized environment, as different approaches may affect the decision-making of the management and investors or can alter the tax base for income tax purposes. Purpose of the article: The aim of this paper is to compare and discuss the different possible approaches of recording and reporting of the virtual currencies for accounting and tax purposes and to compare the approaches among the Czech Republic, the Slovak Republic and Germany to point out the need for a harmonized solution in a global environment, as dealing with cryptocurrencies is not included in the accounting and tax legal framework in many other countries. Methods: Methods of description, analysis, comparison and synthesis are used to achieve the set aim of the paper. Different approaches to the topic are demonstrated and compared in illustrative Tables. Findings & Value added: The paper highlights the need for a uniform approach for the accounting and tax treatment of virtual currency by comparing the level of legal definitions and different approaches. The most elaborate legal implementation of this topic is in the Slovak Republic where the treatment of virtual currencies is included in the Accounting Act and the Income Tax Act. The Czech Republic approaches cryptocurrencies only on the basis of recommendations from the Ministry of Finance, which is not legally binding to obey. Germany has included cryptocurrencies in the Banking Act, the accounting definition is missing and the tax solution is in the Income Tax Act.

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Implications of Next Step Blockchain Applications for Accounting and Legal Practitioners: A Case Study

Cited by 27 publications

References 4 publications

Managing change with and through blockchain in accountancy organizations: a systematic literature review

Managing change with and through blockchain in accountancy organizations: a systematic literature review

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Specifics of Cryptocurrencies from an Accounting, Tax and Financial View in a Globalized Environment

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