Application of Blockchain Technology in Increasing Financial Statement Transparency: An Overview of Financial Accounting Aspects

Abstract

Transparency and integrity of financial statements are crucial elements in building stakeholder trust in business entities. However, a number of massive financial scandals have shaken public confidence in the reliability of reported financial information. This research aims to explore the application of blockchain technology in improving the transparency of financial statements from a financial accounting perspective. Using qualitative approaches and literature study methods, this research analyzes the concept, architecture, and operational mechanisms of blockchain, as well as examines case studies and best practices that have been applied. The results show that blockchain has the potential to improve the transparency and integrity of financial statements by creating a reliable and immutable audit trail, as well as providing a distributed and decentralized platform that eliminates the need for third parties vulnerable to data manipulation. However, blockchain deployments also face challenges such as regulatory issues, lack of standardization, resistance to change, and technical constraints. The research recommends closer collaboration between stakeholders, development of effective implementation frameworks and guidelines, as well as advanced research to explore the technical, regulatory, and social aspects of implementing blockchain in financial accounting.