Running head: RESEARCH ON THE INFLUENCE OF INFORMATIZATION 1 Research on The Influence of Informatization On The Accounting Theories and Practices and Real-time Control in China Yang Lu Fairleigh Dickinson University RESEARCH ON THE INFLUENCE OF INFORMATIZATION 2 Abstract The 21st century is an information age of rapid development and the computer is more and more widely used in every country. As a development country, China is effecting by the increasing improvement of modern science technology in every field.
In the accounting field, with the appearance of computerization, accounting information processing has a qualitative leap and its pattern is changing from the traditional accounting mode to network accounting. With rapidly development of the global information network, computer network will become the new trend of financial development which will give accounting fields bring a lot of influence. In this paper, the influence of informatization on accounting field such as practice and theory of accounting and the real-time control about accounting are preliminary discussed about China.
Keywords: China, accounting informatization, real-time control, practice and theory RESEARCH ON THE INFLUENCE OF INFORMATIZATION 3 Research on The Influence of Informatization On The Accounting Theories and Practices and Real-time Control in China In China, with the rapid development of modern science technology, informatization is gradually playing a most important role in numerous fields such as business administration, finance and hospitality management. Accounting as an indispensable field in the modern society, is also influenced by the development of informatization.
Therefore, researching on this topic is very necessary and this paper will choose the following two important sections to analysis this impact. Accounting information (Giunta, & Biscani, 2012) refers to changing the accounting pattern from traditional one to the modern accounting mode again based on the existing information technology. Then reasonable using the accounting information resources to establish a open accounting information system (AIS) in order to increase the rate of utilization of accounting information resources. Therefore, accounting informatization is a development process in this field.
In the section of theory of accounting, the accounting informatization has a great influence on the four aspects such as accounting objective, basic assumptions of accounting, accounting information quality and accounting measurement. First of all, accounting objective is the accounting work in the enterprise should reach the certain requirement and standard in a fixed social condition (Ausloos, 2012). Accounting objective is to make accounting function more specific. However, according to the variable external environment, accounting objective has a great change and accounting measurement will
RESEARCH ON THE INFLUENCE OF INFORMATIZATION 4 be rapidly develop. Under the support of modern technology, accounting information processing will look forward to automation, webified and systematization. At the same time, taking advantage of intellectual technology make the decision-making much more accurate. Secondly, basic assumptions of accounting that mainly include the following parts: subject hypothesis influence, going-concern assumption influence and periodicity assumption influence.
Among these, the periodicity assumption has the most impact from accounting informatization. The accounting period is that the enterprises divide the all activities into several short periods combining with accounting accounts and financial statements to provide the accurate financial position and operation result to the decision maker. However, for periodicity assumption, it is the supplement of the going-concern assumption. In the information age, accounting period shorten the spatial distance between the enterprise and he entity. At the same time, network technology provides the possibility of the financial management to understand financial position and business performance. Therefore, in this circumstance, accounting period is a week or a month, however, it could not be shorter because the business of some enterprises have periodicity and continuity. If the division of accounting cycle is too small, it is difficult to reflect the various business position and evaluate the business of enterprise and the development in the future.
Quality of accounting information includes reliability, relativity, timeliness and some other features, and it directly connect with the decision-making and operating result. Impact from accounting informatization, accounting information system (AIS) belongs to the management control layer and presents the accounting principle. At the same time, it will make for the improving of accounting information quality. RESEARCH ON THE INFLUENCE OF INFORMATIZATION 5 Last of these aspects is accounting measurement that generally utilizes the historical cost to measure.
However, due to accounting informatization, the measurement is gradually developing a new mode of cost-based and combination with market value. Under this situation, accounting information not only can reflect cost, but also the current value. For the practice of accounting, accounting analysis method is the core of the entire accounting practice (Chulwoo &Youngmin, 2012). Accounting analysis is not only the component of each enterprise economic activity, but also the one-more development of accounting.
Accounting information is the rational basis of accounting analysis, combined with the business accounting, statistical accounting and other related material. The use of reasonable method will have all the economic indexes to analysis and contrast so as to find out the various economic activities of enterprise, financial revenues and expenditures as soon as possible, and the reason of the correct evaluation of the budget that make sure what have done with the performance. In addition, the existing gap should be found out and constantly sum up experience and lessons, and make a more rational and scientific measures.
Continuously improving business management method is to greatly improve the economic benefit of enterprise. By the influence of network technology, the enterprise accounting information system collects the information and make the processing and settling an make the use of the accounting information which stored in a database, combined with the corresponding format and content provide accounting analysis. Also the system can combine the user’s actual demand that will make database processing into a more personalization accounting information.
RESEARCH ON THE INFLUENCE OF INFORMATIZATION 6 Besides accounting analysis, accounting method also impacts for accounting informatization. According to the complicity of traditional accounting method, many enterprises just focus on the simpleness of method after deciding the accounting method, but regardless of the scinetificalness and reasonability. Furthermore, it will waste a lot of human resource when copying the data of account books vouchers and statements.
However, after appearance of accounting computerization, accountants can have the aid of computer to solve some problems that cannot be figured out by hand. Then it will make the work accounting measurement better and sufficiently bring into play the management function. In the section of the real-time control, the definition of it is that under the environment of network, accountants utilize modern technology and three quantity information to compare and analysis about the process of enterprise operational activities (Kicsiny ;amp; Varga, 2012).
Then with the guidance, adjustment, constraint, accountants will promote the business activities in order to improve the enterprise management efficiency and benefit that is the ultimate goal of value enhancing. The accounting information impact it mainly presents two aspects, one is related theoretical support of the real-time control, the other is accounting control mode conversion (Kicsiny ;amp; Varga, 2012). The same as any other theory, accounting control theory continuously become more and more perfect, enrich and developmental with the experience of the Times and the environment changes.
Presently, with the rapid development of the information technology, the free-market economy is gradually improving. Under this circumstance, it exactly meets the requirement of enterprise management. Nowadays, not only the enterprise survival environment, RESEARCH ON THE INFLUENCE OF INFORMATIZATION 7 but also the enterprise management concept, mode or method, have had the massive changes on the basis of the development of information technology.
For instance, the application of ERP, CRM, SCM, XBRL (Yuting, 2010) and other enterprise management software, not only achieve the fund flow of the enterprises and the integration of logistics and information flow, but also provide an advantage to conduct the real-time control more roundly. On the other hand, the impact of accounting informatization on the real-time control is accounting control mode conversion. Nowadays, the achievement of information sharing among the internal of enterprise and the entire supply chain ascribes the efficient and wide application of information technology.
Specifically, it is a process of building a new accounting control mode based on the traditional control mode. It means that the enterprise of pattern of accounting control has transferred from Just-In-Time (JIT) to the real-time control and accounting control has gradually changed from afterwards to matter. In conclusion, the application of accounting informatization brings the great influence on the accounting field. It makes not only the massive change in the drivers of information and data processing tools, but also the accounting method and theory. The data storage form and data processor also have the change.
Especially, network applying into the financial software will generate a profound impact on accounting information system (AIS). At the same time, accounting control must establish accounting real-time control to strengthen the effectiveness and controlling force. RESEARCH ON THE INFLUENCE OF INFORMATIZATION 8 References Duhigg, C. (October 04, 2008) Pressured to Take More Risks, Fannie Reached Tipping Point. The New York Times. Poster, M. (August 07,1999). National identities and communications technologies.
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