Will Disruptive Technologies Also Disrupt Accounting Practices?

• In Event: Cases and International Accounting

Abstract

This study examines new technology and how it is reshaping business and accounting in a fundamental way. This article explains why technology is referred to as “disruptive,” and examines the implications of disruptive technologies on accounting and accounting systems departments. A report by Deloitte explains that technology is advancing rapidly, and the role of accounting is often overlooked. The choice of how to account for production using advanced technology can significantly affect financial reporting. To demonstrate the potential impact, this paper provides an example of one rapidly advancing technology, 3D Printing, and shows how the adoption of this technology might affect the firm’s financial reporting. Firms are already experimenting to determine the ways they can benefit from technologies such as 3D Printing in some surprisingly cost-efficient ways. A real life example describes how one firm has found a cost-efficient way to test 3D printing by borrowing from an academic institution in Ohio.

Authors

• Heidi H Meier, Cleveland State University

• Etzmun Rozen, Cleveland State University

• Deborah Smith, Cleveland State University