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Journal of Humanities, Arts and Social Science

ISSN Online: 2576-0548 ISSN Print: 2576-0556 CODEN: JHASAY
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ArticleOpen Access http://dx.doi.org/10.26855/jhass.2023.06.008

Optimisation of the “Fourth Statement” in the Era of Digital Economy

Qiqi Li*, Yelong Jin

School of Finance and Accounting, Chengdu Jincheng College, Chengdu, Sichuan, China.

*Corresponding author: Qiqi Li

Published: July 14, 2023

Abstract

As the digital economy continues to evolve, technology is being updated and the economy is growing at a rapid pace, information data is growing at a precipitous pace and data resources are becoming an important factor of production for enterprises. With the increasing demand for data resources, the huge amount of redundant data has brought challenges to financial management, and the limitations of traditional financial reporting have been exposed, making data assets increasingly eligible for recognition as assets. As a new strategic organizational form leading the transformation of digital technology, the digital economy has the characteristics of strong penetration, high growth and low cost. The digital economy not only accelerates the deep integration of digital technology, information network and the real economy, but also promotes the birth of new production methods, new industrial forms and new business models, which is bound to have a profound impact on the labor market. On the one hand, the digital economy provides multiple employment opportunities and promotes the effective matching of personnel and posts; On the other hand, the digital economy changes the structure of workers' knowledge and skills, and improves work efficiency, thus affecting wages and working hours. Based on the principles of relevance and materiality in accounting, the article will analyze the data elements from the perspective of both financial management and traditional financial statements and point out their inadequacy in dealing with the digital transformation of enterprises, introduce the "fourth statement" presentation, through the balance sheet and the "fourth statement" mixed presentation of three presentation options, to promote the standardization of data asset information presentation, improve the value relevance of accounting information. It will explain the necessity of constructing a "fourth statement" from various perspectives, such as enterprise risk management and value assessment, and propose governance measures and suggestions for optimisation.

Keyword

Digital economy, fourth statement, financial analysis

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Copyright

© 2023 by the author(s).
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives (CC BY-NC-ND) license, which permits non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited and is not modified or adapted.
https://creativecommons.org/licenses/by-nc-nd/4.0/

How to cite this paper

Optimisation of the “Fourth Statement” in the Era of Digital Economy

How to cite this paper: Qiqi Li, Yelong Jin. (2023) Optimisation of the “Fourth Statement” in the Era of Digital Economy. Journal of Humanities, Arts and Social Science7(6), 1088-1092.

DOI: http://dx.doi.org/10.26855/jhass.2023.06.008