Keywords
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| E-commerce; Conceptual framework; Principles; Assumptions; Constraints |
Introduction
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| The development of E-commerce has brought about great changes to accountancy and business mechanisms. It is necessary for accountants and auditors to be aware of the changes and their impact on their respective professions, as well as the conditions of the legal environment related to the profession. |
| It is particularly noted that E-commerce has lack the factor of documentation in most of the stages. The lack of the documentation factor has a negative effect on recognition and measurement basis since most operations are intangible in nature. |
| The remarkable growth in the use of the international network of information online, as a mean for the implementation of E-commerce business, constitutes a tangible change in business patterns in general. In addition to that, 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. In general, this research presents the obstacles caused by the adoption of a company's E-commerce systems in the production of accounting information. As well as in particularly also presents the basis for measurement and recognition which constitutes the third level of the accounting conceptual framework. Therefore, it has become necessary for those who are interested in organizations related to the accounting profession, to find in-depth solutions and adopt principles and specialized technological standards that work together with operating concepts underlying traditional commerce. |
| Consequently, the objective of this study is to investigate the most important obstacles related to the concepts of measurement and recognition (principles, assumptions, and constraints) that requires in the conceptual framework underlying financial accounting, related to transactions of E-commerce underlying the E-commerce environment. Moreover, it will be one of the scientific literature that deal with the obstacles of measurement and recognition in E-commerce from the viewpoint of Jordanian external auditors. This may help create solutions for specialists and for those who are interested in Ecommerce business. |
Significance of the Study
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| This study is important due to the relationship between Ecommerce and the components of the accounting system pre-existing in Jordan, similar to other developing and developed countries. Therefore, the important of this study identifies the following points: |
| • Identify the most important obstacles in accounting recognition and measurement within the conceptual framework related to the accounting principles, assumptions, and constraints, from the viewpoint of Jordanian external auditors in the E-commerce business. This is because the spread and development of electronic commerce have raised the importance of auditing information. It is an essential element in accounting system outputs. |
| • Investigate the conceptual framework of financial accounting principles, assumptions, and constraints in order to demonstrate their adequacy underlying E-commerce business. This may help those interested in the development of the accounting profession to create perceptions and suggestions where there is an inadequacy in the current accounting conceptual framework in dealing with transactions under E-commerce business. It may help them innovative and develop modern methods to face these obstacles. |
| • Help develop legal legislations needed to keep up with the actual advancement in communication processes considered to be the basis of E-commerce business. This is especially crucial since online networks in Jordan has achieved a remarkable achievement in scientific and services fields. |
| • Highlight the most important obstacles facing the accounting profession underlying E-commerce in developing countries, including Jordan. To investigate the most important ways and future plans, that contributes to the development of electronic commerce. Further, it is necessary to help catch up with technology and the modern era of the Internet, particularly in developing countries, where E-commerce in these countries is still on the rise. |
Problem of the Study and its Components
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| The main problem of the study lies in the attempt to identify the most important obstacles related to recognizing and measuring accounting transactions conducted through E-commerce business, as well as recognizing and measuring earnings and losses resulting from it. The problem also lies in determining how recognition and measurement can be achieved and appreciated for these transactions. |
| It is also important to mention that E-commerce has become a significant part of business engaged by most countries of the world in general; Jordan included in particular [1] “mentioned throughout the past 5 years, Jordan has been a suitable environment for startups and taking the e-commerce landscape in the country to another level. Moreover, according to another report done by Arab Advisors group; internet users in Jordan spent around $370 Million on products and services online in 2011 which is a 92% increase from the $192 Million that was spent in 2010”. Also, different study supports the significant increasing in E-Commerce transactions over the world such as: Sami [2] Oguttu et al. [3], Oduntan [4]. Therefore, this study aims to answer questions related to the most important obstacles to the third level of the conceptual framework recognition and measurement in all its concepts of assumptions, principles and constraints, related to the accounting of transactions underlying E-commerce business, from the viewpoint of the Jordanian external auditors. |
| The research questions are as follows: |
| Q1-What are the obstacles of recognition and measurement of accounting principles within the third level of the conceptual framework underlying financial accounting, in E-commerce business corporations? |
| Q2-What are the obstacles of recognition and measurement of accounting assumptions within the third level of the conceptual framework underlying financial accounting, in E-commerce business corporations? |
| Q3-What are the obstacles of recognition and measurement of accounting constraints within the third level of the conceptual framework underlying financial accounting, in E-commerce business corporations? |
Hypotheses of the Study
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| The hypotheses of the study were built in order to answer the questions of the study that raised the importance of measurements and recognition concepts in an outstanding conceptual framework of financial accounting which put to fit transactions related to traditional commerce. Also, Oguttu et al. [3] mentioned that E-commerce has lacked the factor of documentation in most of the stages. The lack of the documentation factor has a negative effect on recognition and measurement basis since most operations are intangible in nature. |
| In addition, the fairness of presentation is associated with financial reports of corporations that are involved in E-commerce. This is done on the basis of agreement on the concepts, including a conceptual framework that underlie financial accounting in all its levels, and the bases of measurement and recognition in all its concepts of assumptions, as well as accounting principles and constraints related with the preparation of the financial reports. These, in turn, provide qualitative information in terms of relevance and reliability, as well as help achieve the objectives for the users of financial reports. |
| Then, the study will test the following hypotheses: |
| • There are no obstacles of recognition and measurement of accounting principles (Measurement, Revenue Recognition, Expense Recognition, Full Disclosure) within the third level of the conceptual framework underlying financial accounting, in Ecommerce business corporations. |
| • There are no obstacles of recognition and measurement of accounting assumptions (Economic Entity, Going Concern, Monetary Unit, Periodicity) within the third level of the conceptual framework underlying financial accounting, in E-commerce business corporations. |
| • There are no obstacles of recognition and measurement of accounting constraints (Cost-Benefit, Materiality, Industry Practice, Conservatism) within the third level of the conceptual framework underlying financial accounting, in E-commerce business corporations. |
Theoretical Framework and Literature Review
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| The World Trading Organization (WTO) defines E-commerce as: "The production process, advertising and the sale and distribution of products by networks, relying on the Internet as the most important mean underlying E-commerce" [5]. And the Organization for economic co-operation and development defines E-commerce as: "The commercial deals and transactions in which people and institutions interfere. They are based on the conversion and analysis of the electronic data on different forms, where these transactions are based on as a basis on the Internet" [5]. And E-markets define as: "the place in which the dealings, transactions, and relationships for the exchange of products, services, information and money are done. In addition, when the body of the market is electronic, the commerce center is considered to be as an online place that includes commercial dealings. Moreover, the participants in the electronic market from buyers, sellers and brokers are not only in different places, but rarely know each other. Also, the ways of communication among individuals in the electronic market differ from one individual to another and from one case to another" [2]. |
| There are several forms of e-commerce business depending on the technical degree of the product, process and the broker or agent. So any agent, commodity or process can either be tangible or digital. |
| Consequently, commerce is divided into three sections: Pure Traditional Commerce, Pure Electronic Commerce, and Partial Electronic Commerce. Thus, when the agent, commodity and the process are tangible, the type of commerce will be pure traditional commerce. In contrast, when the agent, commodity and the process are digital, then the type of the commerce will be purely electronic commerce. However, if one of the three factors becomes digital while the rest are tangible, there will be a mix between traditional and electronic commerce. This mix is called a "partial electronic commerce". |
| The conceptual framework underlying financial accounting is considered to be the constitution for commerce. It is also a consistent system of interconnected bases and objectives that can lead to consistent standards which can describe the nature, function and the limits of financial accounting and financial reports. And the conceptual framework is also considered to be as a guide that can be referred to and rely on its standards in order to resolve the problems faced in the accounting profession or in the process of preparing financial reports. |
| The conceptual framework consists from three levels: The first level is concerned with identifying the objectives of financial reports. The second level presents the qualitative characteristics of accounting information and the specific definitions for the elements of financial reports. The third-level illustrates the concepts of recognition and measurement used by accountants in the formulation and application of accounting standards. This includes the use of principles, assumptions and constraints that describe the financial reporting environment. |
| This study will also deal with the most important obstacles related to the recognition and measurement within the third level of the conceptual framework underlying financial accounting in E-commerce business corporations. They are divided into: |
| • The basic accounting principles related to the Measurement principle or Historical Cost, the Revenue Recognition principle, Expenses Recognition principle, or the Matching principle, and Full Disclosure principle. |
| • Basic assumptions related to economic Entity assumption, Going Concern, Monetary Unit, Periodicity assumptions and finally accounting constraints that affect financial reports information related to the constrains of Cost Benefit, Materiality, Industry Practice and that of Conservatism. |
| • Kurdi [6] showed that E-commerce led to the liberation of corporations from constraints and numerous laws. In the past, a particular corporation needs a certain license and needs to undergo many of the laws as well as bear the cost of establishing a new branch, or hire others in foreign countries. Also, it didn't need a tangible market, and the trader can access this intangible market anytime and anywhere. |
| • Oduntan [4] also showed the most important challenges facing the State of Nigeria, the United States and the European Union in Ecommerce business. The study also clarifies taxes that should be paid but found that the existing laws in the United States, the European Union and the State of Nigeria were not strict enough control and monitor E-commerce transactions. |
| • In a study by Oguttu et al. [3] the researchers pointed out the most important challenges in electronic commerce by the concept of permanent entity. It is based on the idea of the tangible presence of E-commerce business entity in the country. The researchers concluded that the determination of a permanent E-commerce entity is facing significant challenges. This is because E-commerce allows an entity to deal with consumers in any country in the world without the need to establish a permanent entity in its traditional image. It is possible for business transactions between an entity and customers to be fully achieved or exchanged via the Internet, including the stages of bidding, approval, acceptance, the development of terms of the contract and payment as well. |
| • Zayoud [7] also showed that a large part of E-commerce is considered as being the intangible trade; difficult to be restricted and identified. He also mentioned that E-commerce does not keep up with local tax legislations at the country level in terms of rapid growth underlying the various forms of E-commerce. Finally, he added that E-commerce suffers from the lack of sufficient documents and evidence to identify its volume and earns. |
| • Amari [8] was interested in the measurement of revenues underlying the E-commerce business. The researcher highlighted that revenue is measured according to the value expected to be obtained via the sale of commodities or the provision of services. As well as revenue is measured according to the current value of the expected cash values obtained from the revenue resulting from the exchange of products on the market. The researcher also showed that in E-commerce business, the sale of commodities and provision of services in different parts of the world and through multiple currencies result in inconsistent cash unit revenues, which leads to the inconsistent unit of measurement for such operations. |
| • A study by Siam et al. [9] focused on the recognition of revenue in the age of electronic commerce. The researchers confirmed that the process of recognition via revenue may have evolved in Ecommerce in many corporations, and the revenues are usually achieved during the exchange of commodities and services for cash, or claims by cash. As a result of this, the process may take the form of revenues from the sale of the products, which are recognized through the date of sale or the date of delivery of the commodities to the customer. |
| • A study prepared by Hamid [10] focused on the fact that many individuals believe that the revenue in E-commerce business represents cash payments in exchange of commodities and services; this impression is true despite its simplicity. However, this pattern represents only a small percentage of E-commerce business patterns. The fact is the commodities might be sold and services are provided without getting the cash money; It is also possible for the cash money to be paid before delivering the commodities and provision of services; the service or the delivery of commodities is done through stages that are difficult to be identified; therein lies the problem of revenue recognition as a whole. |
| • Downer [11] showed that it is important to search for evidence that can be relied upon to prove that all electronic commerce transactions or some of them have been done in the country through a fixed place permanently. Therefore, it is necessary to search for means that can be considered as evidence for existing a permanent entity. |
| • Dahmash et al. [12] showed that the absence of documentation is one of the major problems that can threaten the accounting profession when dealing with the electronic business environment. Further, the accounting profession has yet to be developed to the desired level in order to interact with the surrounding environment of E-commerce business. |
| • Tawfiq [13] pointed out that there are no international or local accounting standards available to organize various accounting transactions made with electronic means of cash payment. With the growing expansion of electronic communications networks and continuous development in the areas of banking technology, the researcher recommended for the central bank and the Egyptian Ministry of Trade to issue a group of regulations and accounting standards for the implementation of electronic banking for the various means of electronic cash transactions. |
| A study by Yahya [14] showed that operating in E-commerce business will affect the main fundamentals of accounting information systems that are represented by each of the documentary group, booking group, chart of accounts, as well as financial reports. Consequently, it is necessary to take into account these effects and their results on the design of accounting information systems and pay attention to human resources represented by the individuals working with the accounting information systems. |
| The results in the study of AL-Abdali [15] showed that accessing into the era of new economy or the so-called digital economy requires the enactment of legislation and appropriate regulations for transactions via the Internet and intellectual rights. It is also important to have qualified human resources that are able to deal with information technology. |
| A study by Al-Batali [16] stressed the need to reconsider accounting theory and upgrade its concepts in line with E-commerce environment. He claimed that, with the intensification of studies in this field, it is also necessary to reconsider the international accounting standards and formulate them in line with the changes brought by Ecommerce. |
Research Methodology
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| In order to achieve the primary objectives of this study, a theoretical literature review has been done in order to develop a questionnaire. The questionnaire was distributed to external auditors working in Jordanian Auditors office who are registered with the Jordanian Association Certified Public Accountant. |
Sample of the study
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| The sample was selected using simple random sampling with a sample size of 25 Jordanian Auditors office from 500 certified auditor's office registered under the Jordanian Association, Certified public Accountant. A total of 77 questionnaires were distributed and returned back from external auditors by hand with the help of enumerators and students. |
Instrumentation
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| The data of this study were obtained through a survey, in which of a total of 77 questionnaires were distributed to external auditors. The questionnaire is divided into two sections. The first section includes the demographic information of the auditor (i.e. age, certification, occupation, educational level, and expertise). In the second section, there were 32 items to investigate the obstacles faced by E-commerce business corporations that are related to level three of the financial accounting conceptual framework (Recognition and Measurements). The auditors were asked to indicate the level of acceptance toward these 32 items on a five-point Likert-scale, ranging from 1 – not accepted to 5- fully-accepted. |
Procedure
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| The questionnaires were distributed to 77 Jordanian external auditors in a period of three months; between January to March 2015 with the help of enumerators. Out of 77 questionnaires, only 71 were fit for analysis. |
Statistical method
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| The responses obtained from the survey were tested for internal consistency and reliability using Cronbach alpha tests, in order to measure the level of credibility of the data collects from sample study. One sample t-test was used to test the hypotheses of the study. Hence, if the level of significance is less than or equal to 0.05 at 95% confidence level, or (t) calculated more than or equal 1.67 the value of (t) table at a significant level (5% ), then the researcher would accept the alternative hypothesis. A null hypothesis is also accepted if the level of significance is greater than 0.05 or (t) calculated less than 1.67 the value of (t) table at the significant level (5%). |
Statistical Analysis and Testing the Study’s Hypothesis
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| In this part of the study, the researcher will test the hypotheses of the study as follows: |
| Testing the first hypothesis: There are no obstacles of recognition and measurement of accounting principles (Measurement, Revenue Recognition, Expense Recognition, Full Disclosure) within the third level of the conceptual framework underlying financial accounting, in E-commerce business corporations. |
| Table 1 shows the obstacles related to the recognition and measurement of accounting principles in financial transactions for corporations working under electronic commerce business. These obstacles have emerged clearly in relation to the principle of accounting measurement ( historical cost). The most prominent one is associated with the obstacle of measuring financial items due to the difficulty in complying with laws and regulations of various countries and regions where these corporations work; the mean is 4.79. This is followed by the obstacle in measuring human resources. Human resource plays a very clear and important role in conducting electronic commerce business; the mean is 4.71. Further, the obstacle of measuring technical assets adopted by E-commerce corporations has also merged, because the nature of these assets is characterized by rapid development and modernization, and the values are exposed to rapid obsolescence, where the mean is 4.54. The dependence of Ecommerce upon a group of technical assets that should be fully available and integrated makes it difficult to distinguish between tangible and intangible assets and measured in accounting. Moreover, the existing obstacle related to measuring the assets underlying Ecommerce corporations because it dependence upon a group of tangible and intangible assets that should be fully available. The tangible assets should not work in isolation from intangible assets like software necessary to operate these assets; the mean reached 4.03. Also, obstacles related to the revenue recognition principle have appeared, because it was found that the difficulty in verifying the essence of electronic commerce business and the transfer of risk related to the commodities or services to customers will increase within a mean of 4.72. Further, the mean for the difficulty in verifying revenue is 4.43 as a result of the lack of existing tangible document that supports the occurrence of electronic commerce transactions. |
| Another obstacle appears to be related to the lack of a mechanism for measuring electronic commerce transactions based on historical and current information according to specific rules; the mean reached is 4.58. |
| The responses of the individuals study samples have confirmed the expectations of the researcher associated with revenues recognition obstacles will lead to the expenses recognition obstacle. As a result, the difficulty to match the expenses incurred by a financial period in Ecommerce business revenues, due to the difficulty in corporate revenues recognition; the mean reached 4.43. In addition, the difficulty in revenue recognition underlying E-commerce business makes the process of matching expenses unreliable and unfair, with a mean equal to 4.25. |
| This study has shown that there are obstacles related to the disclosure principle, where E-commerce business corporations face difficulty concerning disclosing the volume of manipulation, fraud, piracy and penetrating website business, with a mean at 4.55. This is followed by another obstacle that assesses the proposed alternatives for the expansion of the disclosure, which is suitable for users of financial information, with a mean reaching 4.11, in order to make rational decisions in the various countries of the world. |
| Table 1 shows the t-test results for the first hypothesis related to the obstacles of recognition and measurement of accounting principles in the conceptual framework underlying financial accounting in Ecommerce business corporations. The arithmetic mean for the total items related to the first assumption is 4.32 with a significance level is equal to or less than 0.05 and (t) calculated was 19.53 more than 1.67 the value of (t) table at significant level (5%). This allows the researcher to accept the alternative hypothesis. "There are obstacles of recognition and measurement of accounting principles within third level of the conceptual framework underlying financial accounting, in Ecommerce business corporations". And reject the null hypothesis. |
| Testing the second hypothesis: There are no obstacles of recognition and measurement of accounting assumptions (Economic Entity, Going Concern, Monetary Unit, Periodicity) within third level of the conceptual framework underlying financial accounting, in Ecommerce business corporations. |
| Table 2 shows many obstacles of recognition and measurement of accounting assumptions of the conceptual framework underlying financial accounting, in E-commerce business corporations. An obstacle to determining the economic unity of the corporations working underlying the electronic commerce business has appeared because it consists of a mix of ready-made programs and electronic data with a mean reaching 4.76. Further, another obstacle emerged related with the state to determine the main site for the management of electronic commerce business corporations as a basis for determining economic entity; the mean reaches 4.57. The responses of the individuals study samples agree that the revenue recognition obstacle according to the conditions of the agreement among the interested parties, limits the application of Periodicity assuming in E-commerce business corporations with a mean reaching 4.44. This result is expected by the researcher. As a result of difficulty to separate between the concepts and components of the conceptual framework; that is to say, the obstacles related to the measurement and recognition, in turn, lead to the emergence of obstacles underlying the application of accounting assumptions. For example, with the obstacles in revenue and expense recognition in the field of E-commerce business; result in an obstacle associated with the application of periodicity assumption. |
| Further, another obstacle appears to be associated with the monetary assumption related with electronic commerce business corporations. In such a case, their financial transactions are achieved in units of various and inconsistent cash and through different markets on a global scale. Their monetary value fluctuates daily depending on the prices of prevailing exchange at the date of the financial transactions, as well as the date of preparing the financial reports; the mean reaches 4.31. The obstacle of applying the going concern assumption also appears difficult by the ease of transfer the corporation operates in E-commerce business to various countries around the world; the mean reaches 3.87. |
| A corporation engaged in E-commerce business where a server or the Internet service provider exists, will in turn increase the obstacle of corporation going concern; the mean reaches 3.63, especially this sites may not continue for long periods of time. |
| Table 2 shows the t-test results for the second hypothesis related to the obstacles of recognition and measurement of accounting assumptions in the conceptual framework underlying financial accounting in E-commerce business corporations. The arithmetic mean for the total items related to the second is 4.04 with a significance level is equal to or less than 0 .05,and (t) calculated was 18.21 more than 1.67 the value of (t) table at significant level (5%). This allows the researcher to accept the alternative hypothesis "There are obstacles of recognition and measurement of accounting assumptions within third level of the conceptual framework underlying financial accounting, in E- commerce business corporations". And reject the null hypothesis. |
| Testing the third hypothesis: There are no obstacles of recognition and measurement of accounting constraints (Cost-Benefit, Materiality, Industry Practice, Conservatism) within the third level of the conceptual framework underlying financial accounting, in Ecommerce business corporations. |
| Table 3 shows many obstacles related to the accounting constraints that have emerged at the recognition and measurement of financial transactions of electronic commerce business corporations. The most obstacles are: The absences of verification of the security and documentation, as well as the possibility of website hackers, make it more difficult conservatism in estimating potential losses and allowances with a mean reaching 4.77. Also the high risks and uncertainties posed by future technical changes that may lead to increasing difficulty in applying conservatism constrain; the mean is 4.38. |
| There also appears to be the obstacle to determine the relative material characteristics of error in the financial items of published financial reports related with E-commerce corporations; the mean is 4.53. This is due to the speed of achieving financial transactions in these corporations. |
| Another obstacle that has appeared concerns relying on personal judgment to assess which elements are more material when treating elements that contain tangible and intangible assets such as, the attached programs in a computer system; the mean is 4.25. |
| The obstacle to determine the industry practice of the sector where these E-commerce corporations belong to has a mean of 3.63. This is due to their ability to diversity activities they carry out which belong to different sectors. The obstacle for these corporations to commit to the laws and the specific regulations related with their activities and the industry practice they belong to has a mean of 3.77. This is due to their existence in different countries around the world. |
| Finally, The responses of the individuals study samples agree that there are obstacles related with the benefits that E-commerce corporations can gain as well as, their ability to cover the costs to design and develop the system that ensures adequate and efficient accounting system transactions for these corporations has a mean of 3.42. |
| Table 3 shows the t-test results for the third assumption related to the obstacles of recognition and measurement in the conceptual framework of financial accounting of accounting constraints for electronic commerce business corporations; the arithmetic mean of the total axle paragraphs is 3.97 with a presumptive level <= 5%. |
| This allows the researcher to accept the alternative assumption and reject the assumption of nihilism; the existence of obstacles of recognition and measurement in the conceptual framework of financial accounting of accounting constraints for electronic commerce business corporations. |
| Table 3 shows the t-test results for the third hypothesis related to the obstacles of recognition and measurement of accounting constrains in the conceptual framework underlying financial accounting in Ecommerce business corporations. The arithmetic mean for the total items related to the third assumption is 3.97 with a significance level is equal to or less than 0.05 and (t) calculated was 10.94 more than 1.67 the value of (t) table at a significant level (5%). This allows the researcher to accept the alternative hypothesis "There are obstacles of recognition and measurement of accounting constrains within the third level of the conceptual framework underlying financial accounting, in E-commerce business corporations". And reject the null hypothesis. |
Results and Recommendations
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| The study has revealed an increase in the arithmetic mean related to the responses of individuals study sample associated with the obstacles of recognition and measurement in the conceptual accounting framework underlying financial accounting at all concepts (accounting principles, assumptions, constraints) when the E-commerce business corporations prepare financial reports. In addition, the obstacles of recognition and measurement are connected, interrelated and interlinked with each other. So, the researcher can mention that the obstacles related to the measurement of the financial items according to the principle of the historical cost have in turn, led to an increase obstacles in the revenue recognition underlying E-commerce transactions. The later will, in turn, lead to the emergence of obstacles in applying the expenses recognition principle (matching principle), where this matching will not be objective and fair. It is obvious that the emergence of obstacles within the three above-mentioned principles; (measurement, revenue recognition, expenses recognition) will lead to creating other obstacles related to the full disclosure principle. |
| Also, the obstacles of accounting principles will lead to creating obstacles in applying the accounting assumptions as well as constraints. For instance, the obstacle of revenues recognition and expenses recognition associated with E-commerce creates an obstacle in the application of the periodicity assumption. Also, the obstacles related to measuring intangible assets, the technical changes and rapid developments that occur will increase the obstacles of applying the conservation constraints when trying to estimate potential losses and allowances. It will also be difficult to determine the materiality constrain for the financial items of the published financial reports related to corporations underlying E-commerce business. |
| The researcher believes that under E-commerce business, the concept of accounting principles, assumptions and constraints differ from the prevailing concept in the traditional commerce business due to the fact that, the former includes electronic modern means that need greater flexibility in dealing with them compared with those applied in the traditional commerce business. This is clearly seen through the different means of dealing, and the investigation from tangible means to Electronic-means. Therefore, the concepts that control measurement and recognition in E-commerce accountancy will be affected. |
| Consequently, the researcher recommends the need to amend the international accounting standards in order to establish special mechanisms for E-commerce business, to find the required solutions for information security, to determine the implementation of the fulfillment process, as well as to provide services and commodities as agreed in the E-commerce business. |
| Further, there is a need for the board of International Accounting Standards to develop a conceptual framework underlying financial accounting in line with E-commerce business by highlighting the most important obstacles raised in this study. It is also necessary to find the most important means and solutions so as to address them. The researcher also confirms that the rehabilitation of accountants,auditors and educational accounting programs are in line with these changes. Finally, the researcher recommends for state officials and responsible parties to enact the necessary and required legislations to keep up with advances associated with communication processes and the era of the Internet and technology. This is especially necessary for developing countries like Jordan, where E-commerce is still in the process of growth and expansion. |
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