Understanding accounting as a social and institutional practice: possible exit of accounting science from crisis

  • Received May 10, 2020;
    Accepted June 15, 2020;
    Published June 17, 2020
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  • Article Info
    Volume 3 2020-2021, Issue #1, pp. 11-22
  • Cited by
    3 articles

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This article highlights the transformation of views on the understanding of accounting as a science in the new conditions for the functioning of enterprises operating in globalized markets in a dynamic competitive environment. The necessity of considering external factors (corporate scandals, financial crisis, etc.) in the development of accounting as a science is emphasized. The reasons for the need to confirm the scientific status of accounting are considered, the hypotheses concerning the gradual crowding out and replacement of accounting by information systems with artificial intelligence are refuted. Accordingly, the study aims to confirm the scientific significance of accounting and justify the need for its further development as a social science aimed at solving social issues and having a deeper social context. Various accounting models and identification of factors affecting their construction, as a result of which the goals of accounting are transformed, make the theoretical basis of this study. It is concluded that accounting is a social science that studies the features of the functioning of the accounting system as a social and institutional practice. Such an understanding of accounting science is considered one of the ways out of the existing crisis. The reasons for the lack of understanding among Ukrainian researchers of accounting as a social science are highlighted, and the ways to overcome them are suggested. It is proved that accounting, on the one hand, is a product of the social environment, an instrument for reflecting the economic reality of an enterprise. On the other hand, it influences the formation of social reality, being an instrument for shaping social processes and relations arising from the functioning of accounting as a separate socio-economic institute.

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    • Figure 1. Changing the purpose of the “accounting science”: a traditional approach
    • Conceptualization
      Serhii Lehenchuk, Iryna Zhyhlei
    • Investigation
      Serhii Lehenchuk
    • Methodology
      Serhii Lehenchuk, Iryna Zhyhlei
    • Project administration
      Serhii Lehenchuk, Olena Syvak
    • Resources
      Serhii Lehenchuk, Olena Syvak
    • Writing – original draft
      Serhii Lehenchuk, Iryna Zhyhlei
    • Formal Analysis
      Iryna Zhyhlei
    • Funding acquisition
      Iryna Zhyhlei
    • Validation
      Iryna Zhyhlei, Olena Syvak
    • Supervision
      Olena Syvak
    • Visualization
      Olena Syvak
    • Writing – review & editing
      Olena Syvak