The Blockchain Evolution and Revolution of Accounting

Information for Efficient Decision Making: Big Data, Blockchain and Relevance

21 Pages Posted: 7 Oct 2020 Last revised: 8 Nov 2021

See all articles by Kimberlyn Munevar (George)

Kimberlyn Munevar (George)

University of California, Berkeley - Haas School of Business

Panos N. Patatoukas

University of California, Berkeley - Haas School of Business

Date Written: March 1, 2020

Abstract

Blockchain, the technology behind digital currency, is a decentralized, distributed ledger that records transactions in digital assets. By authenticating and recording immutable transactions, decentralized blockchains perform the same function as many intermediaries in our society that establish trust and maintain integrity between transacting parties. Due to its natural relation to accounting and possible uses in accounting functions, business operations and financial services, it is important that accountants learn about blockchain technology and its opportunities and limitations. This chapter explores applications of blockchain technology in finance, auditing, financial reporting and supply chain. We first discuss the classification, characteristics and issuance of cryptoassets and the evolving regulatory environment. Then, we address potential innovative uses of blockchain in auditing and financial reporting, keeping in mind the limitations of its application. Finally, we explore how blockchain technology can enhance communication and trust between organizations in a supply chain or in contracting relationships.

Keywords: Blockchain, Cryptosassets, Triple-Entry Accounting, Real-Time Reporting, Open Book Accounting, Smart Contracts

JEL Classification: G10, G20, G30, O31, 032, 033, M10, M20, M40, M41, M42

Suggested Citation

Munevar, Kimberlyn and Patatoukas, Panos N., The Blockchain Evolution and Revolution of Accounting (March 1, 2020). Information for Efficient Decision Making: Big Data, Blockchain and Relevance, Available at SSRN: https://ssrn.com/abstract=3681654 or http://dx.doi.org/10.2139/ssrn.3681654

Kimberlyn Munevar

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States
2817946040 (Phone)

Panos N. Patatoukas (Contact Author)

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

HOME PAGE: http://https://sites.google.com/berkeley.edu/panos

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