Financial Accounting in the Era of Blockchain - A Paradigm Shift from Double Entry to Triple Entry System

11 Pages Posted: 24 Apr 2021

See all articles by Emon Kalyan Chowdhury

Emon Kalyan Chowdhury

Chittagong Independent University; Chittagong Independent University

Date Written: April 16, 2021

Abstract

This paper aims to conceptualize the impact of blockchain technology on the financial accounting from technical and non-technical perspectives. It further investigates the way blockchain can improve the quality of accounting data. By reviewing the published research papers. this study observes that blockchain technology can create a platform for the organizations to disclose their information voluntarily in the short-run while it decreases errors in financial disclosure, enhances the quality of accounting information and reduce information redundancy in the long-run. A harmonized movement of accountants, auditors, regulatory authority and other relevant parties can extract the optimum benefits of blockchain technology in accounting ecosystem. This study indicates necessary way outs to improve the quality of accounting information by applying blockchain technology. It further identifies potential threats in implementing blockchain technology and recommends appropriate remedies. It is expected that, the findings of this study will encourage top management and policy makers to introduce blockchain technology in their business for log-term sustainability as well as to increase the quality of data and acceptability of their financial reports.

Keywords: Financial accounting, blockchain, information quality, distributed ledger technology, triple entry system

JEL Classification: M41, M42, L86, C55

Suggested Citation

Chowdhury, Emon Kalyan and Chowdhury, Emon Kalyan, Financial Accounting in the Era of Blockchain - A Paradigm Shift from Double Entry to Triple Entry System (April 16, 2021). Available at SSRN: https://ssrn.com/abstract=3827591 or http://dx.doi.org/10.2139/ssrn.3827591

Emon Kalyan Chowdhury (Contact Author)

Chittagong Independent University ( email )

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Chittagong
Bangladesh

Chittagong Independent University ( email )

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Chittagong, 4000
Bangladesh
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