Innovation in Accounting Assessment

Running head: INNOVATION IN ACCOUNTING
Innovation in Accounting
Name of the Student:
Name of the University:
Author’s Note

1INNOVATION IN ACCOUNTING
Table of Contents
Background of the Research..........................................................................................2
Research Questions and Research Objectives................................................................2
Literature Review...........................................................................................................2
Ethical Consideration.....................................................................................................3
Reference........................................................................................................................4

2INNOVATION IN ACCOUNTING
Background of the Research
Accounting as a field has undergone tremendous changes which have mainly focused
on making the process more efficient and transparent. The innovative development which
have taken place in accounting make be related to implementation of software for accounting,
upgrade or introduction of accounting standards. The research would be showing what
innovations are brought about in the accounting framework and how the same impacts the
operations of a business (Raghavan and Thomas 2014). The research paper would be
critically discussing the recent developments which have taken place in the field of account
and what are the significance of the same. The analysis would be considering secondary data
available for the literature review of the topic. In addition to this, the research would be
identifying prospective research questions and also analyse relevant journal articles which
can be for reviewing the viewpoints of different scholars.
Research Questions and Research Objectives
This research proposal would be adhering to the following objectives which are shown
below in details:
1. Pointing out the developments and innovation which has taken place in accounting.
2. Establishing how business can gain from the innovation which has taken place in
accounting process.
3. To identify if there is any further scope for development in the field of accounting.
The research questions which can be identified from the research work on the topic are
effectively listed below:
1. What innovations and developments have taken place in the field of Accounting?
2. How such improvements do impacts the reporting process which is followed by
different businesses?
3. What are some further scope of developments which can take place in the accounting
process?
Literature Review
Accounting can be recognised as the oldest discipline in any business organization
and several improvements have been brought about in the same along the way. As per
Songini, Gnan and Malmi (2013), accounting in a business allows management to record
financial information in a systematic manner. The method of accounting has undergone
changes over the years as technological improvements have introduced numerous software’s
which can be used for record maintenance process (Songini, Gnan and Malmi 2013). This has
made the overall process of accounting more systematic in nature and therefore promoted
simplistic approach for maintaining records.
As per the opinions of Yigitbasioglu (2016), different information systems have been
introduced in the market which makes both management and financial accounting process
much more sophisticated and transparent. The research paper shows that companies needs to
implement information systems that are relatively flexible and segmental, as well as
encourage cooperation between stakeholders (Yigitbasioglu 2016). This is to be done so that
it can help in decision making process of business. The research journal shows that
management relies on the results or reports generated from such information system to take
important decisions regarding the operational process of the business. The researcher argues

3INNOVATION IN ACCOUNTING
that adaptability is an important constant for the success of the business with the new
information system and therefore a proper choice is required to be made. The findings of the
paper shows that innovation and more development in the software used for financial
reporting as well as management accounting creates effectiveness in the decision making
process and reporting framework of the business.
As per Dainienė and Dagilienė (2014), accounting process has undergone significant
changes from its traditional stages considering the modern practices of accounting. The
auditor appropriately reflects that several treatments of transactions such as intangible assets
have changed for making the reporting framework more logical and accurate. The changes
which are made in the accounting system is done through issuance of accounting standards
which are issued by regulating authorities so that a level of transparency is maintained in the
accounting process (Dainienė and Dagilienė 2014). The researcher further points out that
valuation process has also changed for several items such as assets so that better reporting
can be done for such assets. The findings also shows that better accounting practices are still
being initiated by making amendments to the accounting standards which impacts the
efficiency of the reporting process of a business. These changes made to the reporting
framework make the accounting reporting process more accurate and ensures that the
business follows the policy of full disclosure.
The innovation process in accounting is considered to be important from the
perspective of better reporting framework for a business. Some of the main changes which
can be identified in the field of accounting is information system application for maintaining
ledger accounts and also generating reports custom made for the business. The introduction
of information system has made the entire process more effective and ensured that better
quality of reports are available to the stakeholders and also to the management for taking vital
decisions for the business (Sanchez-Matamoros, Gutiérrez-Hidalgo and Macías 2015). In
addition to this, further changes can be expected in the accounting process which would be
brought about in future (Hueske, Endrikat and Guenther, 2015). The changes can be better
software available or changes in the accounting standards which would change the basis of
reporting. The opinion of several researchers is that more changes can be anticipated in future
considering the current corporate environment.
Ethical Consideration
The analysis shows that accounting as a process has undergone several changes for
improving the reporting framework of a business but it is to be noted that a standard of ethics
also needs to be maintained (Ezzamel et al. 2014). The different accounting standards which
are being introduced is for ensuring that no manipulations takes place in the reporting process
and the stakeholders have access to accurate financial position of the business. In case of
information system, proper layers of security are required so that the same cannot be misused
in any manner.

4INNOVATION IN ACCOUNTING
Reference
da Silva Vicente, C.C., Machado, M.J.C.V. and da Silva Laureano, R.M., 2016. Innovation in
accounting tasks: empirical study in two professional groups. Business: Theory and
Practice, 17(3), pp.270-279.
Dainienė, R. and Dagilienė, L., 2014. Accounting-based valuation of innovation: challenges
and perspectives. Procedia-Social and Behavioral Sciences, 156, pp.589-593.
Ezzamel, M., Hyndman, N., Johnsen, A. and Lapsley, I., 2014. Reforming central
government: An evaluation of an accounting innovation. Critical Perspectives on
Accounting, 25(4-5), pp.409-422.
Hueske, A.K., Endrikat, J. and Guenther, E., 2015. External environment, the innovating
organization, and its individuals: A multilevel model for identifying innovation barriers
accounting for social uncertainties. Journal of Engineering and Technology Management, 35,
pp.45-70.
Raghavan, K. and Thomas, E.R., 2014. Instability, Innovation and Accounting
Education. Journal of Accounting & Finance (2158-3625), 14(2).
Sanchez-Matamoros, J.B., Gutiérrez-Hidalgo, F. and Macías, M., 2015. Innovation in
accounting thought and practice–An introduction.
Songini, L., Gnan, L. and Malmi, T., 2013. The role and impact of accounting in family
business. Journal of Family Business Strategy, 4(2), pp.71-83.
Yigitbasioglu, O., 2016. Firms’ information system characteristics and management
accounting adaptability. International Journal of Accounting and Information Management.