The Relevance of Financial Statements in the Industrial Revolution 4.0 Era
The emergence of Industrial Revolution 4.0 has a significant impact on the business processes. It is also expected to change the characteristics of the needed accounting information. The close ties between accounting and the Industrial Revolution 4.0 encourages researchers to conduct research regard...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Bina Nusantara University
2021-02-01
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| Series: | Binus Business Review |
| Subjects: | |
| Online Access: | https://journal.binus.ac.id/index.php/BBR/article/view/6802 |
| Summary: | The emergence of Industrial Revolution 4.0 has a significant impact on the business processes. It is also expected
to change the characteristics of the needed accounting information. The close ties between accounting and the
Industrial Revolution 4.0 encourages researchers to conduct research regarding the correlation between the two
fields. The research aimed to discuss the characteristics of companies in the Industrial Revolution 4.0 era and
identify whether a mismatch occurred between the information in the financial statements and the changes in
the characteristics of companies in the Industrial Revolution 4.0 era. It was a narrative literature review using
secondary data from various sources. Data collection was made through library research. Then, the data were
analyzed using content analysis. The results show that more and more digital-based companies emerge and develop
with a remarkably high company value even without having any underlying asset. On the other hand, several
studies indicate that assets as an element of financial statements are necessary for determining the company value
for allocating economic resources effectively. However, some studies explain that companies with high assets
have a high company value. It shows a gap that makes the relevance of financial statements in determining the
company value in the Industrial Revolution 4.0 era questionable. This matter has implications for stakeholders to
use financial statements for decision-making in Industrial Revolution 4.0 era and future research. |
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| ISSN: | 2087-1228 2476-9053 |