Linking Knowledge to Accounting Transactions: A Database Approach
18 Pages Posted: 14 Jan 2008
Date Written: December 1, 2007
The REA model was first developed McCarthy (1982) as a way to model business events rather than recording accounting transactions simply for financial statement preparation. Since its development it has been expanded to reflect different types of resources, events and agents, as well as adaptations allowing the models to cater for commitments, and instigation events (Geerts and McCarthy, 2003). In order to better serve business decision making, systems need to collect information pertaining to unstructured, non-event based activities and link these to accounting events. The transaction knowledge model presented here allows knowledge related to accounting transactions to be linked to events, in particular, to events in an REA based system. This approach also allows a temporal dimension to be included in the analysis of these activities by collecting information pertaining to business events at different temporal moments as well as under various business conditions, recorded though the eyes of different stakeholders at various stages in a transaction lifecycle. The model also allows for easy integration into existing REA based models and is scalability based on integration rather than design.
Keywords: knowledge base, transaction systems, REA
JEL Classification: M40, M46
Suggested Citation: Suggested Citation