Accounting Essay Assignment. Effect of Changing Information Technology to Accounting Culture

Effect of Changing Information Technology to Accounting Culture
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Effect of Changing Information Technology to Accounting Culture
In the current economic world, the most critical issue is the changing nature of accounting practice driven by the adoption of information technology. This has made several accounting processes become obsolete and that creates a demand for a working current situation (Lev, 2018). In their 2016 book “ The End of Accounting,” Feng Gu and Baruch Lev have noted that in recent decades, corporate financial information, conveyed by those voluminous and increasingly complex quarterly and annual reports has lost most of its worth to investors. As a result, the authors suggest mechanisms of revitalization and restructuring to meet the current need (Lev & Gu 2016). The aim of this paper is to identify issues that accountants need to think about and resolve for effective process implementation in accounting practice.
Borrowing from Lev and Gu (2016), in every corporate setting, financial reports such as balance sheets, income and expenses statement, and quarterly and annual reports are the backbone for any decision made by investors, individuals, and institutions, as well as lenders to business enterprises (Lev & Gu, 2016). These are the reports that guide on restructuring, mergers, and acquisitions. This overdependency on accounting information is the reason behind the complexity, and thus the need for constant development. The traditional accounting information has lost relevance since it provides as little as 5% of the information used by investors (Lev & Gu, 2016). Lev and Gu (2016) have suggested the application of “ Strategic Resources and Consequences Report” focused on the items that create a sustained economy as the remedy. This is a report based on value creation where the focus is on strategy and execution to recognize and evaluate the company&rs...