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Transformation of accounting through digital standardisation

Transformation of accounting through digital standardisation Corporate reporting infrastructure and communication are being transformed by the emergence of digital technologies. A key element of the digital accounting infrastructure underpinning international corporate reporting is the IFRS Taxonomy, a digital representation of international accounting standards that is required by firms to produce digital corporate reports. The purpose of this paper is to trace the development, governance and adoption of the IFRS Taxonomy to highlight the implications for accounting practice and standard-setting.Design/methodology/approachThe authors mobilise Actor Network Theory and a model of transnational standardisation to analyse the process surrounding the formation and diffusion of the IFRS Taxonomy as a legitimate “reference” of the IFRS Standards. The authors trace the process using interview, observation and documentary evidence.FindingsThe analysis shows that while the taxonomy enables IFRS-based reporting in the digital age, tensions and detours result in the need for a realignment of the perspectives of both accounting standard-setters and taxonomy developers that have transformative implications for accounting practice and standard-setting.Originality/valueThe study explains how and why existing accounting standards are transformed by technology inscriptions with reflexive effects on the formation and diffusion of accounting standards. In doing so, the paper highlights the implications that arise as accounting practice adapts to the digitalisation of corporate reporting. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Accounting, Auditing & Accountability Journal Emerald Publishing

Transformation of accounting through digital standardisation

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0951-3574
DOI
10.1108/aaaj-11-2016-2794
Publisher site
See Article on Publisher Site

Abstract

Corporate reporting infrastructure and communication are being transformed by the emergence of digital technologies. A key element of the digital accounting infrastructure underpinning international corporate reporting is the IFRS Taxonomy, a digital representation of international accounting standards that is required by firms to produce digital corporate reports. The purpose of this paper is to trace the development, governance and adoption of the IFRS Taxonomy to highlight the implications for accounting practice and standard-setting.Design/methodology/approachThe authors mobilise Actor Network Theory and a model of transnational standardisation to analyse the process surrounding the formation and diffusion of the IFRS Taxonomy as a legitimate “reference” of the IFRS Standards. The authors trace the process using interview, observation and documentary evidence.FindingsThe analysis shows that while the taxonomy enables IFRS-based reporting in the digital age, tensions and detours result in the need for a realignment of the perspectives of both accounting standard-setters and taxonomy developers that have transformative implications for accounting practice and standard-setting.Originality/valueThe study explains how and why existing accounting standards are transformed by technology inscriptions with reflexive effects on the formation and diffusion of accounting standards. In doing so, the paper highlights the implications that arise as accounting practice adapts to the digitalisation of corporate reporting.

Journal

Accounting, Auditing & Accountability JournalEmerald Publishing

Published: Jan 15, 2019

Keywords: IFRS; Translation; Standardisation; Actor network theory (ANT); Circulating reference; IFRS Taxonomy

References