Conventional Accounting Research Articles

Penganggaran dan Pembiayaan Pendidikan yang Efektif dan Efisien

In several ways, the sharia accounting system is different from conventional accounting. However, there are axiomatic technical similarities between the two. By using descriptive qualitative methods, this research aims to provide the author with an understanding of accounting theory and practice in Islamic economics. The research results show that the perspective of accounting science in Islamic economic practice focuses on the use of an accounting system that is in accordance with sharia principles, which prioritizes truth, accuracy and fairness. Surah Al-Baqarah verse 282 emphasizes clear and accurate transaction recording, the use of honest writers, financial accountability, zakat, and transparency and fairness in accounting. The results of this research conclude that there are many ways to see the economic implications of Islam today. First, Islamic economics must adapt to technological changes because they have influenced the way people think and act. Second, the history of Islamic economics has changed in the modern era, and third, Islamic economics is now real and relevant with the development of digital technology. Fourth, the concept of Islamic economics is based on the Koran and Sunnah. Compared to Conventional Accounting: Sharia accounting systems differ from conventional accounting in several key aspects. However, there are axiomatic technical similarities between the two.

Analysis of intangible assets reporting standards and automation in KSA within an Islamic context – a case study

Purpose This paper aims to the significance of intangible assets in boosting financial credibility and accounting transparency in Saudi Arabia and other Islamic countries, aligning with Saudi Vision 2030. Moreover, it articulates the indispensable role of information and communication technology (ICT), including cutting-edge technologies such as artificial intelligence (AI) and blockchain, inefficaciously mitigating manual challenges while safeguarding the authenticity and reliability of financial information. Design/methodology/approach This study examines relevant literature on national and international standards to define the significance of intangible assets within conventional and Islamic Shari’ah principles in the Kingdom of Saudi Arabia (KSA). It delves into how automation technologies can improve accuracy and verifiability in reporting intangible assets while adhering to Islamic Shari’ah Compliance (ISC) principles, providing valuable insights into standardization and automation benefits. Findings The study highlights that ISC laws affect intangible asset reporting. Integrating conventional accounting principles with ISC is necessary to establish a unified international standard. Adopting ICT, AI and blockchain is crucial for automating and ensuring consistent, verifiable reporting of intangible assets. Research limitations/implications This case study highlights the importance of intangible assets in KSA, but its findings require validation through workshops with scholars, stakeholders and policymakers to ensure broader acceptance and applicability beyond the specific context. Practical implications This study provides guidance on using AI, blockchain and other ICT tools to ensure accurate financial reporting by validating and verifying intangible assets, benefiting stakeholders, policymakers, accountants, auditors and ISC professionals. Originality/value This study underscores the importance of reporting intangible assets according to Islamic principles in KSA, with relevance to other Islamic countries. Promoting International Financial Reporting Standards and Saudi Organization for Certified Public Accountants standards enhances accurate reporting and supports Saudi Vision 2030 goal of boosting global investment and trade.

Accounting for sustainability in water supply: the case of the ‘Bottini Aqueduct’ in medieval times

ABSTRACT Drawing motivation from the importance of water for life on Earth in current times and the past, this article investigates the role of accounting in favouring the sustainability of water supply in medieval times by discovering and integrating its financial, social, and environmental dimensions. This period was characterised by demographic and economic growth, which led to increasing water needs and interventions for water supply. We analyse a historical case study, whose conventional accounting is reinterpreted according to the ‘accounting for sustainability’ framework. The case of reference is the city of Siena (Italy) in medieval times with its peculiar water supply system, the ‘Bottini Aqueduct’, undertaken primarily during the thirteenth century. First, this article delves into the pivotal role of conventional accounting in unveiling and monitoring the financial, social, and environmental dimensions of water supply interventions; second, by proposing the metaphor of the ‘tree of life’, it emphasises the role of accounting in favouring the integration of these dimensions by supporting the incorporation of environmental resources – such as water – in the life of society and economy, as sap flows from the roots to the branches in a living tree.

Enhancing the accuracy of stock return movement prediction in Indonesia through recent fundamental value incorporation in multilayer perceptron

PurposeThe study aims to explore how integrating recent fundamental values (RFVs) from conventional accounting studies enhances the accuracy of a machine learning (ML) model for predicting stock return movement in Indonesia.Design/methodology/approachThe study uses multilayer perceptron (MLP) analysis, a deep learning model subset of the ML method. The model utilizes findings from conventional accounting studies from 2019 to 2021 and samples from 10 firms in the Indonesian stock market from September 2018 to August 2019.FindingsIncorporating RFVs improves predictive accuracy in the MLP model, especially in long reporting data ranges. The accuracy of the RFVs is also higher than that of raw data and common accounting ratio inputs.Research limitations/implicationsThe study uses Indonesian firms as its sample. We believe our findings apply to other emerging Asian markets and add to the existing ML literature on stock prediction. Nevertheless, expanding to different samples could strengthen the results of this study.Practical implicationsGovernments can regulate RFV-based artificial intelligence (AI) applications for stock prediction to enhance decision-making about stock investment. Also, practitioners, analysts and investors can be inspired to develop RFV-based AI tools.Originality/valueStudies in the literature on ML-based stock prediction find limited use for fundamental values and mainly apply technical indicators. However, this study demonstrates that including RFV in the ML model improves investors’ decision-making and minimizes unethical data use and artificial intelligence-based fraud.

Respectable standards of living: The alternative lens of maintenance costs, Britain 1270–1860

AbstractThis paper argues that in all societies there is considerable agreement about what goods and services are needed to provide a decent living, and that this standard can be measured by the expense involved in maintaining people of good standing. Maintenance costs include two components of living costs that are neglected in conventional approaches. First, in contrast to the usual focus on a fixed basket of commodities, maintenance costs capture changes in the composition and quality of the goods required for a respectable lifestyle. Second, unlike conventional accounting, they include the costs of the household services required to turn the basket commodities into livings. Ignored in the conventional methodology, the inclusion of these costs represents a core innovation. More than 4600 observations, drawn mainly from primary sources, trace levels and trends in maintenance costs for Britain from 1270 to 1860. These can be compared with established cost of living indicators to offer a complementary perspective on real consumption that accommodates aspirational goods and the input of household labour. The struggle to support families at respectable standards emerges as driving industriousness and motivating prudence among a class that played a major role in economic development.

Analisis Perbedaan Pendistribusian Laba Bersih dalam Akuntansi Konvensional dan Akuntansi Syariah pada Sektor Perbankan Tahun 2019

This study aims to determine differences in the distribution of profits between conventional accounting and Islamic accounting at the banks listed on the Indonesian Stock Exchange (IDX). This study uses a qualitative descriptive analysis method in which company data used are financial statements and an explanation of the desired data in this study is the 2019 financial statements.The result showed that BCA that using convensional accounting distributed their profits to stakeholders who participate in its acquistion. Meanwhile, profit distribution of BRISyariah that using Syariah Accounting also distributes their profits to stakeholders. The difference in profit distribution between conventional accounting and syariah accounting lies in how profits are shared with customers. In conventional accounting, banks distribute profits through interest, and banks using syariah accounting distribute profits through a profit-sharing system. Additionally, one key difference is in zakat distribution; only banks using Islamic accounting allocate a portion of their profits for zakat.

Factors Influencing the Adoption of Artificial Intelligence (AI) Based Accounting System in Malaysian Organization: A Conceptual Paper

As technology rapidly changes, digital technology has been introduced to the accounting field, forcing businesses to adapt. The accounting profession is expected to embrace the new era of digitalization that will change traditional accounting practices. The roles of the accountants will shift to more challenging. Some of it predicted that this technology would take over the accountant's job, but the roles of accountants in this digital economy are still noteworthy. Amidst COVID-19, the transition to online operations is imperative for all businesses, compelling the accounting sector to embrace this technology alongside others. This study aims to discuss how artificial intelligence (AI) impacts the organization in Malaysia in this digital era. This research is anticipated to incorporate the reasons behind the organization's potential transition from conventional accounting methods to AI-driven accounting systems and analyze the resulting impact on the company's efficiency.

New Waves in Academic Accounting Research: Capturing the Future

The science of accounting is continually evolving alongside changes in economic landscapes and development in technology. As a result, accounting academic research must adapt to address these new facts. This paper delves into the most significant areas that are shaping the field, highlighting the exciting possibilities for future research. One major force driving this change is technological growth. Blockchain, with its secure and transparent ledger system, holds immense potential for streamlining financial reporting. Going further, academic research is exploring how this new technology can revolutionize fields such as supply chain management and intellectual property tracking. Moreover, automation is becoming a significant element in changing the method tasks are accomplished. The use of artificial intelligence and robotic process automation is revolutionizing the way accountants handle repetitive tasks. This process allows professionals to concentrate on higher-level analysis and strategic decision-making. Research is being conducted to understand the impact of automation on the accounting workforce and figure out how to develop the necessary skill sets to succeed in this new environment. Going further, the amount of data we have access to is increasing rapidly, and it’s becoming more complex. As a result, accounting research is now more focused on data analytics and visualization tools. These tools help accountants find important insights from financial and non-financial data, which can be used for better decision-making and enhanced forecasting. More deeply, the concept of “agile accounting” is becoming increasingly popular. This method prioritizes adaptability and up-to-date information to offer constant images to firms. Experts are studying how conventional accounting practices can adjust to become more agile and better respond to the changing requirements of modern firms. In addition, the profession of accounting is undergoing a significant change. According to research, there is a shift towards a more advisory role for accountants. This means that accountants are now expected to act as strategic partners to businesses. To fulfil this new role, accountants need to develop new skill sets such as strong communication, data analysis, and problem-solving abilities. Thus, the field of accounting is constantly evolving, and many exciting trends are shaping its future. Researchers in this field will play a crucial role in developing innovative solutions and ensuring that the profession remains relevant and valuable in the years to come. These are just a few of the trends that we can expect to see in accounting research as it continues to evolve. Based on the foundation laid earlier, let’s go deeper into some of the new areas in academic accounting research: Blockchain: Beyond the Hype Blockchain’s potential extends beyond secure transactions. Researchers are exploring its applications in various areas. (A) Auditing: Blockchain-based audit trails can provide a tamper-proof record of financial transactions, increasing audit efficiency and reducing fraud risks. (B) Financial Reporting: Real-time and transparent financial reporting becomes possible with blockchain, enhancing investor confidence and stakeholder decision-making. Automation: Efficiency with a Human Touch While AI and RPA promise significant efficiency gains, research is exploring the human element alongside automation. Key areas of focus include: (A) Impact on Jobs: Studies are analysing how automation will affect the accounting workforce, identifying skillsets needed for future success. This could involve areas like data analysis, critical thinking, and client relationship management. (B) Human-AI Collaboration: Research is exploring how AI can augment human capabilities, freeing accountants for tasks requiring judgment and expertise. This could involve AI handling routine tasks while humans focus on interpreting data and providing strategic insights. Data Analytics: From Numbers to Narratives The explosion of data necessitates new approaches to analysis and interpretation. Accounting research is delving into: (A) Advanced Analytics Techniques: Machine learning and big data analytics are being explored to uncover hidden patterns and predict future trends within financial data. (B) Data Visualization: Research is examining how to effectively communicate complex data insights to stakeholders through clear and compelling visualizations. Agile Accounting: Embracing Change Traditional accounting practices are being re-evaluated through the lens of agility. Research is focusing on: (A) Real-time Reporting: Developing methods for continuous reporting and analysis to provide businesses with up-to-date insights for faster decision-making. (B) Integration with Technology: Research is exploring how to integrate accounting systems with other business functions for a holistic view of operations. The Evolving Accountant: Consultant, not Calculator The accountant of tomorrow is envisioned as a strategic partner, not just a number cruncher. Research is exploring: (A) Developing Advisory Skills: Studies are focusing on how to equip accountants with strong communication, problem-solving, and business acumen to provide valuable strategic advice to clients. (B) The Future of the Profession: Research is examining how accounting education and training can be adapted to prepare future accountants for the evolving demands of the profession.

Implementation of a dynamic planning algorithm in accounting information technology administration

Accounting professionals are increasingly being encouraged to shift their focus from conventional accounting to accounting information as a result of new management strategies and ideas. Cybercrime and other attempts to exploit weaknesses in online systems have become more common in recent years. By introducing the concept of cloud computing and analyzing its logical structure, this research applies the technology and design model to the development of an Accounting Information Management System (AIMS). In accounting information technology administration, efficient resource allocation and decision-making are crucial for optimizing financial performance and strategic planning. Algorithms for dynamic planning are a useful tool in meeting these issues. To maximize efficiency in an accounting group’s allocation of resources, this study employs a dynamic planning method called value iteration. The research presented a new Bayesian optimized Restricted Boltzmann machine (BO-RBM) for acquittal IT management. The data set was first gathered and then pre-processed using z-score normalization. Then, an improved genetic algorithm was used to feature selection. After the system’s design and construction are complete, BO-RBM utilizes to both specify the cloud platform’s distributed storage mode and assess the cluster’s performance. The results show that the algorithm may boost financial performance, increase cost management, and accomplish strategic goals in the IT administration of accounting. The research in this study demonstrates that the cloud platform for handling massive amounts of data may accelerate processes and complete tasks quickly.

Exploring the Potential Applications of Blockchain Technology in Accounting Practice: A Systematic Literature Review

This study aims to examine the potential of blockchain technology in revolutionizing conventional accounting processes and mitigating persistent inefficiencies and problems. This study introduces the potential of blockchain technology to revolutionize conventional accounting processes and address persistent inefficiencies and challenges. By employing a rigorous search methodology, establishing specific criteria for selection, and conducting meticulous data analysis, this paper presents significant discoveries pertaining to the implementation of blockchain technology in the field of accounting. The results suggest an increasing fascination with the potential of blockchain technology to bring about a transformative impact on the accounting sector. The use of blockchain technology in the field of accounting encompasses several areas such as the recording of transactions, automation of accounting operations, and enhancement of auditing procedures. Application of this technology contributes to the improvement of transparency, integrity, and efficiency in financial reporting. However, for widespread adoption to occur, it is imperative to overcome many difficulties like standardisation, interoperability, scalability, legal compliance, and data protection. The study emphasizes the importance of investigating the possibilities of blockchain technology in the field of accounting to address conventional accounting obstacles. The findings of this study may be utilized by researchers to discover potential areas for further research. Additionally, practitioners can acquire valuable insights into the advantages and difficulties associated with implementing these findings.

ACCOUNTING PRACTICE AND SUSTAINABILITY REPORTING IN INSTITUTIONAL THEORY PERSPECTIVE

This article documents and classifies sustainability accounting practices carried out by companies based on the frame of institutional theory. To achieve this goal, article writing is carried out based on reviews of articles published in various academic journals. The articles that were the object of the review were research papers that investigated the accounting implementation process and sustainability reporting in business entities. In the framework of institutional theory, the implementation of accounting and sustainability reporting by companies to date can be called a change (isomorphism) from conventional accounting practices. Based on the results of the research that has been done, the isomorphism can be further classified into three dimensions of the change process, namely (a) coercive isomorphism; (b) change through mimetic isomorphism; and (c) changes due to need or obligation (normative isomorphism). Thus, the results of the research show that not all of the accounting and sustainability reporting practices carried out by the company are based on the needs and obligations according to norms, but some are simply imitating or following along, some are even based on compulsion.

Community Service Training on Material Flow Cost Accounting (MFCA) for Micro, Small, and Medium Enterprise (MSME) Entrepreneurs

In the last two decades, concern for environmental issues has become a regulatory concern at the international and national levels. Many methods have been developed to reduce negative impacts on business activities, including Material Flow Cost Accounting (MFCA) technology that shows an increasing trend among companies and Micro, Small, and Medium Enterprises (MSMEs) in developing countries. The benefit of MFCA technology is its superiority in identifying material losses (harmful products) during production. At the same time, this is known at the end of the process in the conventional accounting system. Then by implementing MFCA technology, business people can take initiatives to reduce material losses and achieves resource efficiency. In addition to efforts to reduce material losses, MFCA technology will encourage business-enhancing practices by reducing costs, reducing carbon emissions, and increasing operational efficiency. This Community Service Program aims to provide training on sustainable business principles by applying MFCA technology for MSME Entrepreneurs at Bina Amanah School of Entrepreneur Cordova in South Tangerang, Banten Province. Using the action research method increases participants' knowledge after the MFCA training.

Akuntansi Keperilakuan Pada Akuntansi Sumber Daya Manusia dan Akuntansi Sosial

In the rapidly evolving landscape of global business entites, organizational effectiveness plays an increasingly crucial role. The success or failure of an organization is heavily dependent on the quality of human resources, recognized as the most vital organizational assets. This research aims to measure human resource accounting and explore the concept of behavioral accounting in two critical contexts: human resource accounting (HRA) and social accounting. The research method employed is qualitative, focusing on past and current phenomena. Findings indicate that, from a conventional accounting perspective, human resources have not been fully recognized as assets. Human resource accounting is a novel concept in financial accounting, requiring further research. This understanding emphasizes that employees are considered organizational assets through a cost or human value approach. The implication is the need for integrating behavioral dimensions in human resource management and social aspects in accounting decision-making to enhance organizational effectiveness holistically. This research is expected to contribute to the development of behavioral accounting theory and practice, providing insights into the role of accounting in social and human resource contexts.

Analisa Instrumen Keuangan Perbankan Syariah Studi Kasus PT Bank Tabungan Negara. Tbk

Islamic financial institutions use an accounting system that is different from conventional accounting. The basis of sharia banking accounting follows the principles of Islamic economics which include the prohibition of interest or what is often called usury (including other usurious practices), then the prohibition of investment in businesses that are considered haram, as well as encouraging fair wealth and economic growth.

Akuntansi Hijau: Konsep dan Perspektif Maqashid Syariah

Profit oriented is the core of conventional accounting concepts and ignores profit oriented which has implications for environmental pollution. The phenomenon of environmental issues is increasingly interesting to study and is the basis for the birth of a new accounting paradigm, namely Green Accounting. Green accounting principles are in line with Islamic teachings contained in the sharia maqashid theory. This study aims to describe the concept of green accounting and green accounting in terms of maqashid sharia theory. This study uses a qualitative approach to the analysis of literature studies using data collection techniques in the form of documentation. The results of green accounting research contain guidelines for companies in compiling financial reports by including social and environmental responsibility cost components in their financial reports. Judging from the theory of maqashid sharia, the concept of green accounting has the same goal as maqashid sharia, namely protecting religion, protecting the soul, protecting the mind, protecting offspring, and protecting property.

Adoption of blockchain as an open accounting information system in Vietnam: A triple-entry accounting approach

Blockchain technology has emerged as an indispensable force driving economic development across various sectors in Vietnam. However, prior research in the realm of blockchain technology has predominantly focused on areas such as logistics, journalism, and banking, neglecting the pivotal domains of accounting and auditing. Recognizing this theoretical gap and the significant role played by accounting and auditing in economic systems, this paper endeavors to augment our understanding of blockchain technology through the lens of a novel "triple-entry accounting method." Additionally, it seeks to assess the level of acceptance of this potentially transformative innovation within the Vietnamese business landscape. Blockchain, renowned for its decentralized architecture and distributed data system, represents a fundamental departure from conventional accounting practices. It functions as an open accounting information system, wherein data is distributed among multiple computers with identical copies, devoid of central administration but validated by a network of participants. Drawing upon responses from a sample of 225 participants and employing statistical analysis with SPSS, this study investigates attitudes and intentions regarding the adoption of blockchain technology in the field of accounting in Vietnam. The results of this analysis reveal a positive correlation between four variables-perceived usefulness, perceived ease of use, comparability, and complexity-and the attitude toward blockchain application, further positively influencing the intention to use it. However, the variable of Perceived Risk does not exhibit statistical significance. These findings underscore the necessity of establishing intelligent accounting procedures through blockchain adoption and underscore the importance of understanding factors influencing attitudes and intentions to enhance the widespread acceptance of this innovation in the Vietnamese business context.

Green Accounting Practices and their Influence on the Performance of Commercial Banks: A Conceptual Analysis

The role of the banking sector in India extends beyond promoting economic growth and ensuring financial stability to include offering secure financial services to the population. However, the rapid growth of the economy has led to various environmental challenges. Consequently, the banking sector now faces a new challenge arising from environmental concerns, specifically financial risks stemming from loan defaults and environmental liabilities caused by borrowers. To ensure their stability, banks must embrace green accounting practices when making lending decisions to address these risks and comply with environmental regulations. Green accounting, also known as environmental accounting or sustainable accounting, is an accounting framework that integrates the economic value of natural resources and environmental impacts into conventional accounting practices. By incorporating environmental considerations into their operations, banks can contribute to the development of a more sustainable economy and meet the increasing demand for environmentally responsible financial services. This research paper focuses on exploring the concept of green accounting, its practices, and its implementation by the banking industry in India. Keywords: Banking sector, Economic growth, financial stability, Environmental challenges, Green accounting practices

Research on Accounting Information Integrity Verification Method based on Blockchain

Conventional accounting information integrity verification method mainly uses SOA mode to obtain verification parameters, which is susceptible to the influence of cloud memory verification transmission bandwidth, resulting in high information integrity verification overhead, therefore, this paper designs a new accounting information integrity verification method based on blockchain. The experimental results show that the designed blockchain-based accounting information integrity verification method has a smaller verification overhead under different data blocks, which proves that the designed accounting information integrity verification method has a better verification effect, has the advantage of low energy consumption, has a certain application value, and makes certain methodological innovations for solving the distortion problem of accounting information.

Akuntansi yang Bagaimana yang Mampu Meredam Sifat Materialistik?

<span lang="EN-US">The discovery of materialistic phenomena among accounting students is a form of the bad reality of conventional accounting education. This study aims to find out how accounting can reduce these characteristics in accounting students. Research using qualitative methods using grounded theory Methods of data collection through interviews, observation, and literature study to produce a theory. The results of the study show that sharia accounting, which is oriented towards immaterial aspects such as love and spirituality, is finally able to bring selfawareness and reduce the materialistic nature that has been embedded previously. In order to make it happen, non-mainstream sharia accounting topics are needed, which address the developing field of sharia accounting but have not yet been accommodated by a professional association. Through the appointment of this topic, it is also proven that science is not selfish because it does not stop at students but also talks back to the surrounding environment. </span>

Rastin partnership accounting part III: Instalment Financial Sharing (IFS)

Purpose: This paper aims to explain a new system of accounting for partnership financing that applies in Rastin Profit and Loss Sharing Banking. In this system, the interest rate is not used in calculations and accounting; and instead, the "time value" of capital based on the amount and duration of the partnership is used. In this part, we will go to the details of removing Riba in instalment payments accounting details.Design: Rastin Partnership Accounting principles have been founded on off-balance-sheet items and on the basis of the institutions' obligations to the depositors and receivers of financial resources, and they are in compliance with the nature of the intermediary financial activity (a partnership of depositor in the yields of the fund receiver via the bank).Findings: The distribution of profit among stakeholders (including workforce and capital owners) is accomplished according to the share of each beneficiary in the created value added. In this regard,Euler's theorem, as the best mathematical-economic innovation for the distribution of income, is applied.Research limitations: This system is novel, and it is required to be more elaborated for further practical development and adjustment.Practical implications: In this accounting system, the return of the partnership is distributed among sharers based on the amount and duration of their partnership. The penalty for delay in payment is calculated from the amount of the incurred loss due to negligence or blameworthy of the undertaker and not upon a penalty interest rate.Social implications: Interest rate as an essential factor in conventional accounting is not usable in Islamic banking and other similar institutions that work based on partnership, such as mutual funds and saving and loan associations. The proposed system removes this shortage and is fairer than conventional accounting.Originality/value: The approach of this accounting system is fully different from conventional accounting because of the intrinsic characteristics of the intermediary role of financial partnership institutions and Islamic banks.