Research Article Open Access

Recognition and Measurement Obstacles of the Conceptual Framework of Financial Accounting Underlying E-commerce Business

Abstract

The remarkable growth in electronic commerce constitutes another new challenge for the accounting profession in its effort to meet the rapid and continuing revolution of information changes. Therefore, the objective of this study is to investigate the important obstacles facing corporations working in the business of E-commerce. This study also aims to investigate the production of accounting information as related to level three (recognition and measurements) of the conceptual framework underlying financial accounting. Therefore, to achieve the primary objectives of this study the researcher has developed a questionnaire that has been distributed to Jordanian external auditors. A total of 77 questionnaires were distributed; however, only 71 questionnaires were suitable for the analysis. A sample t- test was used to test the hypotheses of the study. The main results of the study revealed high arithmetic mean related to the obstacles of the accounting concepts (principles, assumptions, and constraints) at level three of the conceptual framework that underlies financial accounting. This requires attention in the preparation of the financial reports of a corporation operating in E-commerce Business. Moreover, the research concludes that the obstacles are connected, interdependent and interrelated with each other. Therefore, the accounting principle obstacles have implications over the application of accounting assumptions and constraints. Consequently, the researcher recommends the need to make changes in the concepts of recognition and measurements in the conceptual framework that underlies financial accounting. This is to ensure the qualitative characteristics of accounting information for E-commerce business corporations.

Maswadeh, Sana’a. N

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