Impact of Technology on Financial Accounting Standards in the UK

This report delves into the transformation of financial accounting within the United Kingdom, examining the interplay between evolving technology and accounting standards. It addresses key research questions, including the necessity for adapting accounting standards to technological advancements, the effectiveness of current standards, the presentation of financial statements without standardized accounting practices, and the crucial role of financial reporting in fostering customer confidence. The report synthesizes insights from various sources, providing a comprehensive overview of the challenges and opportunities presented by the evolving financial landscape in the UK. It underscores the significance of maintaining up-to-date accounting practices to ensure the reliability and relevance of financial information, ultimately contributing to the success and stability of businesses.

Business Dissertation

Contents
INTRODUCTION...........................................................................................................................2
TASK...............................................................................................................................................2
1.In there is a need of change in accounting standards with evolving technology:...............2
2.Whether the current accounting standards are ideal standards:...........................................2
3.How the financial statements look like without accounting standards:..............................2
4.Whether the financial reporting is critical enough to ensure customer confidence:...........2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Financial accounting has been the integral part for every enterprise and plays the vital role for the
success or failure of any of the organization. This report consist of the research on how the
financial accounting has been transforming in UK. On such topic certain research question has
been addressed in this statement accordingly.
TASK
1.In there is a need of change in accounting standards with evolving technology:
From the point of view of Giancarlo Attolini and Paul Thompson (2017), with the use of excel
for the purpose of accounting and financial reporting had played a vital role the accounting
profession the most of the time. With the use of the remote access to the servers help the auditors
a lot at the initiating the audits when conducted overseas. Due to technological advancement and
complexity in the accounting process, the change in the accounting standard becomes necessary
for the organisation. If accounting standards are not updated than the authenticity of the financial
statements always remain in doubt.
2.Whether the current accounting standards are ideal standards:
According to Jamie Johnson (2021), the accounting standards support the business men and their
business to manage the accounting of their business in a systematic way. The accounting
standards helps the business, accountants and other bookkeepers when they are engaged in
maintaining their financial records. The current accounting standards are ideal as the accounting
is complete based on them and those standards which does not meet them will be regarded as
incomplete. Such standards are not relied upon neither by the company nor by the user who
invest their funds in market on the basis of those standards.
3.How the financial statements look like without accounting standards:
From the view point of Fraser Sherman (2019), as the business owner knows regarding the
accounting but does not concerned about accounting standards. But the user, investors and
regulators will go beyond the ledgers too as they want to check the effect of the transaction that
has been taken place on the overall financial statements. If statements are prepared without
making compliance to Accounting standards, then the value they drawn will become zero as

without complying the accounting principles the output they generate will not be trustworthy at
all.
4.Whether the financial reporting is critical enough to ensure customer confidence:
From the point of view of Bernandita Calzon (2022), Financial reporting plays a vital role for the
smooth running of the organisation. Financial reporting is important as disclosure of such
reporting is mandatory to various regulatory authority’s. The customer confidence will
automatically get enhances as such statement are already complied with accounting standards
and not only this, auditor also certifies them that enhance automatically its creditability.
CONCLUSION
This report is based on the research topic relating to financial accounting impact on United
Kingdom. This broader topic has been divided into various question like whether there is a
change in accounting standards with the change in technology, whether current accounting
standards are ideal or they need a change etc. and these question are being addressed on the basis
of Literature review.

REFERENCES
Books and Journals
Giancarlo Attolini and Paul Thompson (2017) [Online available through]<
https://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/
discussion/evolution-accounting-practice-impact-technology>
Jamie Johnson (2021) [Online available through] <https://www.businessnewsdaily.com/2664-
accounting-standards.html>
Fraser Sherman (2019) [Online available through]< https://smallbusiness.chron.com/importance-
accounting-standards-44927.html>
Bernandita Calzon (2022), [Online available through]
< https://www.datapine.com/blog/financial-reporting-and-analysis>