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: | , |
---|---|
Format: | Article |
Language: | English |
Published: |
Bina Nusantara University
2021-02-01
|
Series: | Binus Business Review |
Subjects: | |
Online Access: | https://journal.binus.ac.id/index.php/BBR/article/view/6802 |
_version_ | 1797714375776141312 |
---|---|
author | Haryani Chandra Chandra Ferdinand Wijaya |
author_facet | Haryani Chandra Chandra Ferdinand Wijaya |
author_sort | Haryani Chandra |
collection | DOAJ |
description | 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. |
first_indexed | 2024-03-12T07:50:58Z |
format | Article |
id | doaj.art-9caae018d8784583a1ea41c1074b2822 |
institution | Directory Open Access Journal |
issn | 2087-1228 2476-9053 |
language | English |
last_indexed | 2024-03-12T07:50:58Z |
publishDate | 2021-02-01 |
publisher | Bina Nusantara University |
record_format | Article |
series | Binus Business Review |
spelling | doaj.art-9caae018d8784583a1ea41c1074b28222023-09-02T20:36:43ZengBina Nusantara UniversityBinus Business Review2087-12282476-90532021-02-01121758410.21512/bbr.v12i1.68025875The Relevance of Financial Statements in the Industrial Revolution 4.0 EraHaryani Chandra0Chandra Ferdinand Wijaya1Universitas Katolik ParahyanganUniversitas Katolik ParahyanganThe 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.https://journal.binus.ac.id/index.php/BBR/article/view/6802company characteristicsfinancial statementsindustrial revolution 4.0 |
spellingShingle | Haryani Chandra Chandra Ferdinand Wijaya The Relevance of Financial Statements in the Industrial Revolution 4.0 Era Binus Business Review company characteristics financial statements industrial revolution 4.0 |
title | The Relevance of Financial Statements in the Industrial Revolution 4.0 Era |
title_full | The Relevance of Financial Statements in the Industrial Revolution 4.0 Era |
title_fullStr | The Relevance of Financial Statements in the Industrial Revolution 4.0 Era |
title_full_unstemmed | The Relevance of Financial Statements in the Industrial Revolution 4.0 Era |
title_short | The Relevance of Financial Statements in the Industrial Revolution 4.0 Era |
title_sort | relevance of financial statements in the industrial revolution 4 0 era |
topic | company characteristics financial statements industrial revolution 4.0 |
url | https://journal.binus.ac.id/index.php/BBR/article/view/6802 |
work_keys_str_mv | AT haryanichandra therelevanceoffinancialstatementsintheindustrialrevolution40era AT chandraferdinandwijaya therelevanceoffinancialstatementsintheindustrialrevolution40era AT haryanichandra relevanceoffinancialstatementsintheindustrialrevolution40era AT chandraferdinandwijaya relevanceoffinancialstatementsintheindustrialrevolution40era |