Chapter IV

Conceptual Framework of Accounting and the Role of

Information and Communication Technology in Disclosure
Practices among the Tourist Companies in India.
The Conceptual Framework (or “Concepts Statements”) is a body of
interrelated objectives and fundamentals. The objectives are to identify
the goals and purposes of financial reporting and the fundamentals are
the underlying concepts that help in achieving those objectives. Those
concepts provide guidance in selecting transactions, events and
circumstances to be accounted for, how they should be recognized and
measured, and how they should be summarized and reported.
HOW DOES THE FRAMEWORK AFFECT THE APPLICATION
OF ACCOUNTING STANDARDS?
Concepts Statements do not affect practice directly. They do not change
the existing generally accepted accounting principles (GAAP). Certain
aspects of existing GAAP conflict with the framework for instance,
museum collections meet the Concepts Statements definition of an asset,
but existing GAAP does not require those assets to be recognized in the
financial statements. The framework affects practice over time because
of its influence in the development of new accounting standards.
WHO BENEFITS FROM A FRAMEWORK AND WHY IS IT
NEEDED?
The FASB is the most direct beneficiary of the framework. The
framework provides the FASB with a foundation for setting standards
and concepts to use as tools for resolving accounting and reporting
questions. The FASB staff is guided by pertinent concepts that might
provide guidance in developing its analysis of issues for consideration
by the FASB, as well as in making its recommendations to the FASB
when developing accounting standards. Consequently, those concepts
are an important aspect of the FASB’s discussions of issues and for
making its decisions about a specific standard.
The framework provides a basic reasoning to consider the merits of
alternative solutions to complex financial accounting or reporting
problems. Although it does not provide all the answers, the framework
narrows the range of alternative solutions by eliminating some that are
inconsistent with it. It thereby contributes to greater efficiency and
consistency in the standard-setting process by avoiding the necessity of
having to redebate fundamental issues such as “what is an asset?” time
and time again.
A guiding principle of the Board is to be objective in its decision making
and to ensure, insofar as possible, the neutrality of information resulting
from its standards. The use of an agreed-upon framework reduces the
influence of personal bias on standard-setting decisions. Without the
guidance provided by an agreed-upon conceptual framework, standard-
setting would be quite different because it would be based on the
personal frameworks of individual members of the Board. A framework
also should reduce political pressures in making accounting judgments.

The FASB is not the only beneficiary of the framework. The credibility
of financial reporting is enhanced when objectives and concepts are used
to provide direction and structure to financial accounting and reporting.
The framework helps by leading to the development of standards that are
not only internally consistent but also consistent with each other. As a
result, both preparers and users of financial statements benefit from
financial statements that are based on a body of accounting requirements
that are more internally consistent.
The framework further helps users of financial reporting information to
better understand that information and its limitations. It also provides a
frame of reference for understanding the resulting standards. That frame
of reference is useful to preparers who apply those standards and to
auditors who examine the resulting reports, as well as to students who
study accounting and the faculty who teach it.
Meaning of Accounting
There is no universally accepted and authoritative definition of
Accounting. It started as a practical activity in response to the needs and
further development has taken place to meet the demand made on it.
Since the need differ in different countries and different environment, it
was developed in different ways keeping in mind the different
environment, but at a general level we can say that accounting exist to
prove service. However different accounting body have given some
definition over the time.
Accounting is the systematic and comprehensive recording of financial
transactions pertaining to a business. Accounting also refers to the
process of summarizing, analyzing and reporting these transactions to
oversight agencies, regulators and tax collection entities. The financial
statements that summarize a large company's operations, financial
position and Cash flows over a particular period are a concise summary
of hundreds of thousands of financial transactions it may have entered
into over this period.
Thus in brief accounting can be considered as an information system
because it has input, processing of input, and definite output. It provides
(a) operating information (b) financial information (c) management
information
(a)Operating information
Operating information is micro level information concerned with the
financial aspects of running a company. The main area of focus are
planning, directing, and controlling. Information related to these focus
area help an entity to determine the price of the product, salaries of
employee, control of cost, and evaluation of performance and
preparation of future budget etc. the greatest amount of accounting
information is operating information and on the basis of this
information, accounting information is divided into other two parts
financial accounting information and management accounting
information.
(b) Financial information
This is the information that is used by management, shareholders, banks,
creditors’ public governments etc. to make decision regarding
organization and its operation. Financial information is the product of
operating information, which is prepared by the accountant by using
different accounting practice and is largely used by management itself
and external users. External users take decision about the business based
on the financial information. This information is useful to the external if
it is prepared on the basis of some common principles, so it possesses
qualitative characteristics like
i. Understandability. This principal of accounting states that
company financial information should be presented in such a way
that that a person with a reasonable knowledge of business and
finance should be able to understand it. The understandability of
information make wider acceptance and become useful to wide
range of users of information. Information will be more
understandable if the information presented is complete, concise,
clear and organized. Adequate disclosure and consistent use of
standard make financial information more understandable.
ii. Relevance. To be useful for the users the financial information
must contain the relevant information which is useful for decision
making. Since all the information is not relevant for users so a
critical examination is necessary by the experts to present the
relevant information. Relevance concept involves the content of
the information and/or its timeliness, both of which can impact
decision making. Relevant information helps user in proper
decision making and saves time and money of the organization.
iii. Reliability. Information is useful only if it is reliable. A reliable
information is presented based on certain logical principles and is
free from material error and bias and faithfully represent the
 information that it purports to present. Information which is
presented accurately on the basis of principles increases reliability
to users of information. Disclosure of assumption used by the
management while preparing the financial statements, consistence
in accounting policies and assessment of management in the
preparation of information increases the faithfulness of
information.
iv. Comparability. It is the quality of accounting information that the
users of financial information must be able to compare the
financial information with other information of same nature in
order to identify trends of performance and financial position.
Again users must be able to compare information with such
information of the other entity in order to judge relative financial
position, financial performance, and change in financial position.
By comparing the information it is easy for the decision makers to
determine the relative strengths, weakness and prospects for the
future between the two firms or between periods in a single firm.
Appropriate disclosure and the use of uniform principle in
presenting information help to enhance comparability.

Scope of accounting
Data creation and collection is the area which provides raw material for
accounting. The data collected is historic in the sense that it refers to
events which have already taken place. Earlier accounting was largely
concerned with what had happened rather than making any attempt to
predict and prepare for future. After the historic data has been collected,
it is recorded in accordance with generally accepted accounting theory.
A large number of transaction or events have to be entered I the books of
original entry (journal) and ledgers in accordance with the classification
scheme already decided upon. The recording and processing of
information usually accounts for a substantial part of total accounting
work. This type of activity of accounting may be called recordative. The
processing method employed for recording may be manual, mechanical
or electronic. Computer are also used widely in modern business for
doing this job.

Data evaluation is regarded as the most important activity in accounting.

Evaluation of data include controlling the activities of business with the
help of budgets and standard cost (budgetary control) evaluating the
performance of business analyzing the flow of funds and analyzing the
accounting information for decision making purposes by choosing
among alternatives courses of action .
Analytical and interpretive work
This work of accounting may be for internal or external uses and may
range from snap answers to elaborate reports produce by extensive
research. Capital project analysis, financial forecast, budgetary
projection and analyzing for recognition, takes over or merger often lead
to research based reports.
Data evaluation has another dimension and this can be known as the
auditing work which focuses on verification of transaction as entered in
the books of accounts and authentication of financial statement

Data reporting
This consists of two parts external and internal. External reporting refers
to the communication of financial information (viz, earning, financial
and funds position) about the business to outside party e.g. shareholders
government agencies and regulatory bodies of the government. Internal
reporting is concerned with the communication of results of financial
analysis and evaluation to management for decision making purposes.
Accounting as information system
Accounting is often called as a language of business. It is a means of
communicating information about the business. An accounting system
starts from (a) collection of data and selection of accounting transaction
i.e. input of the accounting system, (b) processing of transaction and (c)
output. The system flows as given below.

Input---------- > Processing of input—------ > Output = Financial

statements

The accounting activity starts with the observations of economic activity

and collection of data. An accountant observes and records the business
transactions, which can be expressed in monetary terms only. The
transactions that can take place in accounting records are the inputs of
accounting. Recorded transactions are then classified and summarized
by the accountant by using different accounting principles. The
summarized data are used to prepare accounting statement. These
activities are the processing of input. Finally, processed data are used to
prepare financial statement in concise format to ascertain periodical
operating results and financial position of the business in a
comprehensive manner to the users who have only limited knowledge.
These statements are output of accounting system. Output can assist to
accommodate special and complex needs of internal management as
well external users. Reports prepared for special needs of management
for discharging various needs of management are Popularly known as
management accounting information whereas reports prepared for
external users are known as financial accounting information.
Management accounting is that branch of accounting, which is
concerned with the provision of information useful to management.
Such types of accounting can be carried out on the principle that no
information needs to be kept secret for commercial reasons and the
preparers will have no incentive to disguise the truth. However, in actual
practice management cannot disclose all such information publicly due
to some strategic reasons and used only by the internal users to
discharge management function. So, for external reporting purpose
financial accounting becomes the only means by which business
communicate financial information to external users. Financial
accounting is that branch where accountants prepare accounting
statement to show financial effects of business transactions and these
reports are communicated to external users for making economic
decision.
Conventionally financial accounting gives information about (1)
financial position measuring assets, liabilities and equity and (2)
operating results, measuring revenue and expenses, by preparing balance
sheet and profit and loss account respectively. Public limited companies
communicate such information by publishing quarterly reports and
annual reports. Contents of the financial accounting reports can be
determined by many forces. First, it is influenced purely by a market
force. Potential suppliers of fund will be more willing to supply if there
is relevant and reliable information about use of investment and the
results of such investment. An entity providing good quality and
quantity of financial information having good record of accomplishment
will be able to obtain more and cheaper fund. Thus, enterprise has its
own market-induced incentive to provide accounting information.
Secondly, the state and some statutory body regulate the whole process
by which they specify information to be reported, time of report, forms
of report etc. considering environment of the country. Presently, some
countries have national Accounting Standards at national level set by
Accounting Standard Board of that country considering the basic rules
of financial accounting, local environment and tradition of the country.
There is an International Accounting Standards (IASs), now known as
IFRSs (International Financial Reporting Standards) at international
level prescribed by International Accounting Standard Board (IASB),
the parent organization of national accounting standard bodies.
International Accounting Standard Board has no discretionary power to
enforce such standards in any country but they urges to its members
either to set own accounting standard in conformity with such standard
or to follow such standard for preparation of accounting information to
harmonize accounting information.
In India in order to harmonize the diverse accounting policy and
practices as well as keeping eyes on international developments in the
field of accounting and finance, the council of the Institute of Chartered
Accountant of India (ICAI) constituted Accounting Standard Board
(ASB) in April 1977. From then, they have been formulating accounting
standards for Indian business entities taking into consideration the
applicable laws, customs, usages and prevailing business environment.
Being the member of International Accounting Standard Board, the
Indian Accounting Standard Board tries to maintain conformity with
International Accounting Standards but due difference in environment,
law of the land and tradition of the country, there are some differences in
Indian Accounting Standards with International Accounting Standards.
Again, some statutory bodies like Department of Company Affairs now
Department of Corporate Affairs (DCA), Securities and Exchange Board
of India (SEBI), Central Board of Direct Taxes (CBDT), Reserve Bank
of India (RBI),
Insurance Regulatory Development Authority (IRDA) etc. prescribe
some rules by passing relevant Act in the parliament of India. The
accountants have to follow such rules at the time of preparation of
accounts and disclose the relevant information specified by such Act. All
the above factors determine accounting and reporting policy of entities.
Accounting and reporting policy refers to the specific accounting
principles and methods, which are adopted by the enterprise in the
preparation of financial statement. The accounting policy prescribes the
accounting practice, which is largely influenced by the environment.
Role of an accountant
The general duties of an accountant may include some or all of the
following:
 Compiling financial statements (such as the balance sheet, income

statement, and statement of profit and loss).

 Performing financial calculations.

 Reporting on financial performance.

 Analyzing financial data to provide organizations with information

that will assist in future planning and decision-making.

 Assisting with the preparation of budgets.

 Ensuring compliance with relevant financial laws and regulations.

  Developing and implementing financial recordkeeping systems.
 Supervising bookkeepers and accounting assistants.
 Giving financial advice.

Accounting personnel

Chief Financial Officer

The chief financial officer (CFO) is in charge of all the organization’s

finance and accounting functions and typically reports to the chief
executive officer.

Controller
The controller is responsible for managing the accounting staff that
provides managerial accounting information used for internal decision
making, financial accounting information for external reporting
purposes, and tax accounting information to meet tax filing
requirements. The three accountants the controller manages are as
follows:

 Managerial accountant. The managerial accountant reports

directly to the controller and assists in preparing information used
for decision making within the organization. Reports prepared by
managerial accountants include operational budgets, cost estimates
for existing products, budgets for new product lines, and profit and
loss reports by division. (Note that some people use the term cost
accountant interchangeably with managerial accountant. Others
consider cost accounting a specific function of managerial
accounting that focuses on measuring costs. In this text, we use the
term managerial accountant and assume that cost accountants focus
on measuring costs.)
 Financial accountant. The financial accountant reports directly to
the controller and assists in preparing financial information, in
accordance with U.S. GAAP, for those outside the company.
Reports prepared by financial accountants include a quarterly
report filed with the Securities and Exchange Commission (SEC)
that is called a 10Q and an annual report filed with the SEC that is
called a 10K.
 Tax accountant. The tax accountant reports directly to the
controller and assists in preparing tax reports for governmental
agencies, including the Internal Revenue Service.
Treasurer

The treasurer reports directly to the CFO. A treasurer’s primary duties

include obtaining sources of financing for the organization (e.g., from
banks and shareholders), projecting cash flow needs, and managing cash
and short-term investments.

Internal Auditor

An internal auditor reports to the CFO and is responsible for confirming

that the company has controls that ensure accurate financial data. The
internal auditor often verifies the financial information provided by the
managerial, financial, and tax accountants (all of whom report to the
controller and ultimately to the CFO). If conflicts arise with the CFO, an
internal auditor can report directly to the board of directors or to the
audit committee, which consists of select board members.

Not All Organizations Are Alike!

Smaller organizations tend to have only one or two key finance and
accounting personnel who perform the functions described previously.
For example, one accountant might perform the financial and managerial
accounting duties while another takes care of the tax work (or the tax
work might be contracted out to a tax firm). Instead of employing its
own internal auditor, an organization might hire one from an outside
consulting firm. Some organizations may not have a CFO, or they may
have a CFO but not a controller. An organization’s structure depends on
many different factors, including its size and reporting requirements,
Accounting concepts
In order to maintain uniformity and consistency in preparing and
maintaining books of accounts, certain rules or principles have been
evolved. These rules/principles are classified as concepts and
conventions. These are foundations of preparing and maintaining
accounting records. In this lesson we shall learn about various
accounting concepts, their meaning and significance.
Business entity concept
Money measurement concept l
Going concern concept
Accounting period concept
Accounting cost concept
Duality aspect concept
Realization concept
Accrual concept
Matching concept
Accounting standards
The basic concepts mentioned above are the core elements in the theory
of accounting these concepts however, permits a variety of alternative
practices to co exists. as a result the financial results of different
companies cannot be compared and evaluated unless full information is
available about the accounting method which a have been used the
variety of accounting practices have made it difficult to compare the
financial results of different companies .Further the alternatives
accounting method have also enabled, the reporting of different results,
even by the same company.
Need for standard
These standards are needed for several reasons for instances standards
are required in order to avoid the variance which may arise between the
accounting principles and accounting practice and also to find
uniformity among diversity among the various underlying principles of
accounting. We emphasize the Accounting Standards framed by the
IASC or IAS (Indian Accounting Standard, based on IASC) for
maintaining accounting practice in our country.
However, the reasons for setting the Standards are:
(a) Comparison between two firms is possible if both of them maintain
the same principle, otherwise proper comparison is not possible. For
example, if Firm A follows the FIFO method of valuation of stock
whereas Firm B follows the LIFO method for valuing stock, the
comparison between the two firms becomes useless. The same is
possible only when both of them follow identical method of valuing
closing stock.

(b) The firms are not allowed to maintain and present their accounts
according to their own will or choice or cannot prepare report of
financial statements for various interested groups. The same is possible
only when there is some fixed standard for setting practice.

(c) The Accounting Standards recognize the principle of equity

applicable for different users of accounting information, viz. creditors,
investors, shareholders etc. Thus the purpose of setting Accounting
Standards is nothing but to find uniformity in accounting practice while
formulating financial reports and make consistency and proper
comparison of data which are contained in financial statements for the
users of accounting information. Practically, Accounting standards have
been presented in order to maintain fairness, consistency and
transparency in accounting practice which will satisfy the users of
accounting.
Accounting standard in India
Indian Accounting Standard (abbreviated as Ind-AS) is the Accounting
standard adopted by companies in India and issued under the supervision
of Accounting Standards Board (ASB) which was constituted as a body
in the year 1977. ASB is a committee under Institute of Chartered
Accountants of India (ICAI) which consists of representatives from
government department, academicians, other professional bodies viz.
ICAI, representatives from ASSOCHAM, CII, FICCI, etc.
The Ind AS are named and numbered in the same way as
the International Financial Reporting Standards (IFRS). National
Advisory Committee on Accounting Standards (NACAS) recommend
these standards to the Ministry of Corporate Affairs (MCA). MCA has
to spell out the accounting standards applicable for companies in India.
As on date MCA has notified 41 Ind AS. This shall be applied to the
companies of financial year 2015-16 voluntarily and from 2016-17 on a
mandatory basis.
Based on the international consensus, the regulators will separately
notify the date of implementation of Ind-AS for the banks, insurance
companies etc. Standards for the computation of Tax have been notified
as ICDS in February 2015.
History
India followed accounting standards from Indian Generally Acceptable
Accounting Principle (IGAAP) prior to adoption of the Ind-AS
Applicability
Companies shall follow Ind AS either Voluntarily or Mandatorily. Once
a company follows Indian AS, either mandatorily or voluntarily, it can't
revert to old method of Accounting.
Mandatory Applicability (1 April 16)-

 Every Company with Net worth of not less than 500 crores (5
billion).
Mandatory Applicability from Accounting Period beginning on or
after 1 April 2017

 Every Listed Company.

 Unlisted Companies with Net worth greater than or equal to Rs. 250
crore (2.5 billion) but less than Rs. 500 crore (5 billion)(for any of the
below mentioned periods).
Net worth shall be checked for the previous four Financial Years (2013–
14, 2014–15, 2015–16, and 2016–17)

List of Indian accounting Standard

Ind As
Name of Indian Accounting Standard
No.

Ind AS
First-time adoption of Ind AS
101

Ind AS
Share Based Payment
102
Ind As
Name of Indian Accounting Standard
No.

Ind AS
Business Combination
103

Ind AS
Insurance Contract
104

Ind AS
Non-Current Assets Held for Sale and Discontinued Operations
105

Ind AS
Exploration for and Evaluation of Mineral Resources
106

Ind AS
Financial Instruments: Disclosures
107

Ind AS
Operating Segments
108

Ind AS
Financial Instruments
109

Ind AS
Consolidated Financial Statements
110
Ind As
Name of Indian Accounting Standard
No.

Ind AS
Joint Arrangements
111

Ind AS
Disclosure of Interests in Other Entities
112

Ind AS
Fair Value Measurement
113

Ind AS
Regulatory Deferral Accounts
114

Ind AS Revenue from Contracts with Customers(Applicable from April

115 2018)

Ind AS
Leases (Applicable from April 2019)
116

Ind AS 1 Presentation of Financial Statements

Ind AS 2 Inventories Accounting

Ind As
Name of Indian Accounting Standard
No.

Ind AS 7 Statement of Cash Flows

Accounting Policies, Changes in Accounting Estimates and

Ind AS 8
Errors

Ind AS
Events occurring after Reporting Period
10

Ind AS Construction Contracts (Omitted by the Companies (Indian

11 Accounting Standards) Amendment Rules, 2018)

Ind AS
Income Taxes
12

Ind AS
Property, Plant and Equipment
16

Ind AS Leases (Omitted by the Companies (Indian Accounting

17 Standards) Amendment Rules,2019)

Ind AS Revenue (Omitted by the Companies (Indian Accounting

18 Standards) Amendment Rules, 2018)
Ind As
Name of Indian Accounting Standard
No.

Ind AS
Employee Benefits
19

Ind AS Accounting for Government Grants and Disclosure of

20 Government Assistance

Ind AS
The Effects of Changes in Foreign Exchange Rates
21

Ind AS
Borrowing Costs
23

Ind AS
Related Party Disclosures
24

Ind AS
Separate Financial Statements
27

Ind AS
Investments in Associates and Joint Ventures
28

Ind AS
Financial Reporting in Hyper inflationary Economies
29
Ind As
Name of Indian Accounting Standard
No.

Ind AS
Financial Instruments: Presentation
32

Ind AS
Earnings per Share
33

Ind AS
Interim Financial Reporting
34

Ind AS
Impairment of Assets
36

Ind AS
Provisions, Contingent Liabilities and Contingent Assets
37

Ind AS
Intangible Assets
38

Ind AS
Investment Property
40

Ind AS
Agriculture
41
Accounting information and and its application
At the outset accounting information is useful for

 Business performance management

 Create company budgets
 Making business decisions
 Informing investment decision

Business Performance Management

A common use of accounting information is measuring the performance
of various business operations. While financial statements are the classic
accounting information tool used to assess business operations, business
owners may conduct a more thorough analysis of this information when
reviewing business operations. Financial ratios use the accounting
information reported on financial statements and break it down into
leading indicators. These indicators can be compared to other companies
in the business environment or an industry standard. This helps business
owners understand how well their companies operate compared to other
established businesses.
Create Company Budgets
Business owners often use accounting information to create budgets for
their companies. Historical financial accounting information provides
business owners with a detailed analysis of how their companies have
spent money on certain business functions. Business owners often take
this accounting information and develop future budgets to ensure they
have a financial road map for their businesses. These budgets can also be
adjusted based on current accounting information to ensure a business
owner does not restrict spending on critical economic resources.
Making Business Decisions
Accounting information is commonly used to make business decisions.
For financial management, an income statement and accounting of
expenses provides an important overview of the business. Decisions may
include expanding current operations, using different economic
resources, purchasing new equipment or facilities, estimating future
sales or reviewing new business opportunities.
Accounting information usually provides business owners information
about the cost of various resources or business operations. These costs
can be compared to the potential income of new opportunities during the
financial analysis process. This process helps business owners
understand how current business operations will be affected when
expanding or growing their businesses. Opportunities with low income
potential and high costs are often rejected by business owners.
Informing Investment Decisions
External business stakeholders often use accounting information to make
investment decisions. Banks, lenders, venture capitalists or private
investors often review a company's accounting information to review its
financial health and operational profitability. This provides information
about whether or not a small business is a wise investment decision.
Many small businesses need external financing to start up or grow. The
inability to provide outside lenders or investors with accounting
information can severely limit financing opportunities for a small
business.
Accounting and control in organization
One of the tasks of the management is to control the operations of the
organization. Accounting is closely connected with control system in an
organization. To understand this system the control system of an
organization is shown in figure.

The organization is a system of inter related parts and is linked with the
environment. It deprives the inputs from the environment and transforms
them with the help of the operating system in to an output which it
delivers to the environment. To control organizational system we have
first to measure inputs, operation and outputs. The measurement
obtained then has to be evaluated against standards. This information has
to be supplied to the concerned managers so that they could take
appropriate action from future point of view. In all these activities i.e.
measuring evaluating and providing feedback the accountant is deeply
involved. The process of evaluation brings out deviation which provides
the basis for feedback in a system and lead to changes in inputs for
operations to achieve outputs.
The Role of Information and Communication Technology in
Accounting and Reporting Practices
Introduction
Tourism sector is one of the first services sectors to adapt and use
information and communication technology (ICT) for promoting its
services. Nowadays, ICT has deeply affected the way business is
performed and organizations compete (Porter, 2001; Mavri and Angelis,
2009).
Tourism is usually defined as services for people travelling to and
staying outside their usual environment for less than one consecutive
year for leisure or for business purposes. The section in Tourism
involves transportation, accommodation, restaurants (foods), cultural
and leisure activities which makes us think this as a market rather than
an industry (Mavri and Angelis, 2009). Once we introduced the
electronic and digital means in the industry it takes the shape of modern
e business similarly the case with tourism industry. Buhalis (2004)
defines e-tourism as: “e-Tourism reflects the digitalization of all
processes and value chains in the tourism, travel, hospitality and catering
industries. At the tactical level, it includes e-commerce and applies ITs
for maximizing the efficiency and effectiveness of the tourism
organization. At the strategic level, e-Tourism revolutionizes all
business processes, the entire value chain as well as the strategic
relationships of tourism organizations with all their stakeholders
(Andersen and Henriksen, 2000). In contest to many other services, e-
tourism products are almost exclusively dependent upon electronic
medium including audio-visual presentation and descriptions, that is,
they cannot be physically displayed or inspected at the point of sale.
This is, in itself, impose a challenge on the tourist industry at the origin
of the customer where information about the tourist destination has to be
presented in an attractive and convincing manner. The traditional
mediums of marketing the products for tourism industry include ads and
brochures with intriguing photos of hotels, local attractions, nature and
culture which have been widely used by these firms to sell their
products. But as (Andersen and Henriksen, 2000) argue that in the era of
the Internet an alternative channel for advertising is introduced. In a case
study conducted by (Abadi et al.(2013) in Iran argue that the constantly
growing number of travel destinations and the enhanced quality of
existing ones are putting great pressure on those responsible for Iran’s
destinations to find better ways to compete in the tourism marketplace
and to do so in a sustainable manner. The negative impacts upon our
environment, culture and Romanians’ ways of life have given rise to this
demand for a more sustainable development in tourism, too. We can
witness that a new form of tourism is emerging in the place of traditional
tourism. The new tourism takes into accounts the complexity and
segmentation of tourism demand; the greater flexibility of supply,
distribution and consumption; and the search for new sources of
profitability in the industry
With this increasing pace of tourism sector it has been acknowledged by
government, leading industry and professional associations, employers
and the education and training sector that there is an urgent need for
improved targeting of information and advice on ICT courses and
careers to school students so that they could understand the pace, and the
demand of the sector. By understanding the need of these programs the
Romanian Government is playing a major role in providing basic ICT
skills in compulsory schooling, and an important role in conjunction
with education institutions, business, and individuals in providing the
framework to encourage ICT skill formation at higher levels, in
vocational training and in ongoing lifelong learning.
The increasing importance of ICT in tourism can be seen all over the
world. From developed countries to emerging one all have given a large
emphasis in developing tourism sector in their respective state.
Worldwide, the tourism industry has experienced steady growth almost
every year. As per the report of Staistia.com, International tourist
arrivals increased from 528 million in 2005 to 1.19 billion in 2015.
Figures were forecasted to exceed 1.8 billion by 2030. Each
year, Europe receives the most international tourist arrivals. It also
produces the most travelers: with approximately 607 million outbound
tourists in 2015, the region had more than double that of the second
largest tourist origin, the Asia Pacific region. These facts indicates that
why the industry needs to adopt the modern infrastructure and ICT
development. But where this growth opens the window of opportunities
they brings various challenges with them as well. We have discussed
these challenges and opportunities for the ICT in the following section.
ICT and Tourism: Challenges and Opportunities
The revolution in ICTs has profound implications for economic and
social development. It has influenced every aspect of our life whether it
is health, education, economics, governance, entertainment etc. the
accessibility and adoption of these technologies have become the
indicator of the growth strategy of a country. The most important aspect
of the accessibility to these facilities is the increase in the supply of
information, which is shared and disseminated to larger audience.
Secondly it also give a cost advantage. Knowledge is produced,
transmitted, accessed and shared at the minimum cost. The reduction in
the transactional costs, leads to a reduction in the degree of
inefficiencies and uncertainty. Thirdly it has overcome the constraints of
distance and geography. ICTs have cut across the geographic boundaries
of the nation states. It makes possible for buyers and sellers to share
information, specifications, production process etc. across the national
borders. It enables the accessibility to the larger markets and to global
supply chains. Fourthly transparency comes in the operations as
networking and information sharing definitely leads to demands for
greater openness and transparency. Efforts are under way to integrate
ICTs to all sectors and developmental activity. Tourism is one such
potential area. Tourism and economy are closely interconnected.
Discussion on Tourism involves the discussion on economic enterprise
also. For example according to the World Travel and Tourism Council
(WTTC) (2016), tourism remains a major foreign exchange earner and a
pillar industry for many countries across the globe. In terms of a holistic
approach, it can be considered as a strongly interlinked discipline, with
ties to other sectors of the given economy. Chen et al. (2013) argued
tourism to be a powerful sector from socio-economic advancement and
development perspective. However, the development of ICT and social
media in the last ten years has influenced tourism dramatically it has the
way of how tourism and hospitality sectors produce, market and deliver
their products, with their use having, unquestionably, become an
essential tool and strategy. Karimidizboni (2013) argues that the
accelerated collision between technology and tourism in recent years has
brought about indispensable changes in the understanding of the nature
of tourism, with all its economic ramifications, within the tourism
industry as a whole. Werthner and Klein (1999) by using the example of
internet show the relationship between the overall ICT, and the variables
that are linked to it from a tourism perspective. Subsequently, this has
created a chain of communication. Since ICT and the Internet have
become the essential communication tool for the industry the overall
structure of the industry has been transformed. Bughin et al. (2011)
stated that the importance of the Internet, and of online presence, is
demonstrated by means of the high levels of Internet penetration. The
availability of Internet resources has opened a wide window of tourism
industry opportunities to provide a wide, deep and customized service
without compromising with the cost and quality (Buhalis, 2002).
According to Shanker (2008), the contemporary information society has
made tourism a highly information-rich and intensively structured
sector, as the dispersion of ICT has huge potential impacts for tourism
business. Alam (2009) states that due to the wide application of ICT the
business world has become deeply influenced by it. The impact of ICT
on businesses relates to the facilitation of communication among
organizational stakeholders, with it serving as an effective sales channel,
and providing an effective platform for engaging in marketing and other
like-minded pursuits (Wang & Xiang, 2012).
Similarly according to (Stiakakis & Georgiadis, 2011), “Due to their
increasing impact on the efficiency and effectiveness of tourism
establishments, ICTs may be seen as being a fundamental part of
modern tourism business”. The fast-tracking and synergistic interface
between information and communications technologies (ICTs) and
tourism in recent times has brought about necessary changes in the
industry. (Law et al., 2009), in both developed as well as developing
economies.
In the available literature, ICT has been broadly used as referring to
multiple communication technologies, including the wireless Internet
and smartphone applications. Digital radio, television, and cameras
(Shanker, 2008) are creating a new global marketplace that is more
competitive by the day (Sedmak et al., 2016). According to Stiakakis
and Georgiadis (2011), ICT has gradually generated a new paradigm
shift, altering the tourism industry’s structure, and developing a whole
range of opportunities and threats. Consequently, Aghaei et al. (2012)
argue that ICTs provide a powerful tool which can be considered a very
important tool from promotional and strengthening of the tourism
industry’s strategy and operations, in general. Omar (n.d.) states that, in
the near future, countries without having a proper ICT infrastructures are
likely to be behind in coping up with the fast tourism growth compare to
other countries that have a significant ICT infrastructure. Existing
literature that has focused on examining how ICT has in recent time
played an important role in reshaping the tourism industry, agree that
ICT has provided and continue to provide a range of opportunities, for
sub-sectors such as tour operators, accommodation, restaurants, travel
agencies in a globalise context (Bojnec & Kribel, 2004; Buhalis &
Kaldis, 2008; Irvine & Anderson, 2008; Spralls et al., 2011; Stiakakis &
Georgiadis, 2011; Weigel, 2004; Werthner & Ricci, 2004). Furthermore,
a major contribution that has been touted for the tourism industry also
includes improving productivity market and market share (Aramendia-
Muneta & Ollo-Lopez, 2013; Buhalis, 2003; Buhalis & Molinaroli,
2003; Chandler & Munday, 2011), improve competitive advantage
(Buhalis, 1998, 2003; Namasivayam et al., 2000) and business
performance(Shanker, 2008), as well as reducing operational costs
(Bojnec & Kribel, 2004; Buhalis & Kaldis, 2008; Buhalis & O’Connor,
2005). However despite the advances and growth in technology that
have occurred on a global scale, and the arguments made in favor of ICT
developments, Ashari et al. (2014) contend that there are few studies
which measure the impacts of ICT on tourism businesses especially in
developing countries such as India.

Financial Reporting and ICT

The literature gives a wide range of benefits a business unit can get by
adopting ICT. The above literature has shown the impact of ICT on
tourism industry as a whole. It includes the advantage of ICT from
marketing and promoting the products to the efficiency and accuracy of
functions performed by the business units. Now the question is can the
use of ICT be proved an effective tool in preparing and reporting
financial statements of the companies. There are very few literature
which have focused on the role of ICT in preparing and reporting of
financial statements. The investors are dependent on the true and fair
picture of the financial reporting to a large extent. But the increased
complexity of data and multiple operations of the companies raised an
eyebrow on the accuracy and timely availability of these information.
Here the role of ICT comes into the picture. The existing literature does
not speak much about the role of ICT in reporting practices, we have
tried to fill this gap through our study.
The next section is providing the hypothesis we made about the role of
in ICT accounting and reporting practices, followed by data &
methodology and results of the survey. The last section is conclusion.
We have enclosed the questionnaire in the Appendix section at the end
of the chapter.
Hypotheses-.
The null hypothesis is “ICT does not impact the accounting and
reporting practices of tourism industry” whereas the alternative
hypothesis is that “ICT positively influence the accounting and reporting
practices in tourism industry”.
Data and Methodology- In order to test our hypothesis of role of
information and communication technology in Accounting and reporting
practices we have conducted a survey of the firms in tourism sector. A
structured questionnaire was formulated in order to get the responses.
The questionnaire was sent to 50 companies of which only 31 companies
did respond and after screening only 17 questionnaires were able to
qualify for analysis purpose. The questionnaire consist 37 questions on
different aspects of information and communication technology
including its role in firms accounting and reporting, importance,
challenges etc. We formulated the hypothesis that there is no significant
impact of information and communication technology on firms
accounting and reporting practices. We have shown the results of the
survey in details as follows-

Results of the survey-

1. ICT and Business Operations
Percentage of the use of ICT in daily operation-
Table 1 is showing the responses regarding the role of ICT in firms’
daily operation. We cans see from the table that out of seventeen, nine
(53%) firms on an average perform 72.5% of the works by using ICT,
29% firms use it in performing their on an average 38% of the works.
However we can observed one more thing that the percentage of the
firms using IT for performing their operations above 75% is very less
that is only 6%. Similarly firm using IT for less than 25% is also very
low and consist only 12% of the total.

1. Use of ICT in daily Operations

Percentage of the No of firms Percentage of firms
usage
0-25% 2 12%
25-50% 5 29%
50-75% 9 53%
75-100% 1 6%
Total 17 100%
Reasons of using ICT in accounting and reporting of financial
statements- we tried to know the reasons behind the use of Information
and communication technology in the daily operations by the firms.
Table 2 is showing the responses along with the number of
corresponding firms. The table shows that maximum 41% firms
accepted ICT as time saving followed by cost savy (35%), efficiency
(18%) and correctness (6%) of the operations.

2. ICT in Accounting and Reporting of Financial Statements

Reasons No of firms Percentage of firms
Time Saving 7 41%
Saving of Costs 6 35%
Efficiency 3 18%
Accuracy 1 6%
Others 0 0%
Total

Increasing demand of IT facilities and the huge investment in these

facilities by the firms clearly indicate the importance of ICT in today’s
business world and especially when it comes to tourism sector. However
there is no common consensus over these advantages, firms may have
different requirements to use these facilities but still there are some
common benefits of ICT for which these services have been adopted by
the business firms. We used a Likert five rating scale in order to get the
opinions of firms operating in tourism services, on the advantages of
using information and communication technology in their business
operation. The scale consist of five scale where 1 includes strongly agree
and 5 strongly disagree. These opinions are on various advantages of
ICT which the firms taking out of it. These advantages include ease of
handling business, cost saving, fast functioning of business unit,
preparing reports, increased efficiency etc. Table 3 is representing the
opinions of the surveyed firms on the advantages they are getting
through ICT facilities.

3. Opinions on advantages of ICT

opinion Agreed Strong Neutr Disag Strongl Tot
ly al ree y al
agreed disagre
e
Making financial 8 4 4 1(6%) 0 (0%) 17
statement is safe? (47%) (23.5% (23.5
) %)
Electronic fund 6(35%) 10(59 1(6%) 0 0 (0%) 17
transfer is much %) (0%)
convenient than
going to bank

Preparing financial 10(59% 6(35% 1(6%) 0 0 (0%) 17

statement ) ) (0%)
electronically is time
savvy-

Easy to get financial 11(65% 3(17.5 3(18% 0 0 (0%) 17

information ) %) ) (0%)

Reduced the risk of 7 1(6%) 8(47% 1 0 (0%) 17

fraud- (42%) ) (6%)

Managing order is 13 1 (6%) 3 0 0 (0%) 17

easy (76%) (18%) (0%)

Handling of more 13 1 (6%) 3 0 0 (0%) 17

than one business is (76%) (18%) (0%)
easy.

Easy to grab the 10 6 1 0 0 (0%) 17

frauds (59%) (35%) (6%) (0%)

Effectively receive 13 3 1 0 0 (0%) 17

details of my (76%) (18%) (6%) (0%)
transaction through
mail-

Easy to provide real 8 5 3 1 0 (0%) 17

time information to (47%) (29%) (18%) (6%)
stakeholders
Increased customer 9 3 4 1 0 (0%) 17
base- (53%) (18%) (24%) (6%)
Chance of errors 15 0 (0%) 1 1 0 (0%) 17
have reduced (88%) (6%) (6%)

Easy storing, sharing 11 4 2 00 0 (0%) 17

and publishing of (65%) (24%) (12%) (0%)
financial data
Reduced the costs of 11 4 1 1 0 (0%) 17
financial (65%) (23%) (6%) (6%)
information.-

Reduced the 10 5 1 1 0 (0%) 17

dependency on more (60%) (29%) (6%) (6%)
number of people-

Exchange of financial 8 6 2 1 0 (0%) 17

information is easy (47%) (36%) (12%) (6%)

Easy handling of big 8 4 4 1 0 (0%) 17

data (47%) (34%) (24%) (6%)

Computerization of 13 0 (0%) 2 0 2 (12%) 17

services (Online (76%) (12%) (0%)
reservation of Hotels
and Transportation
medium) made easy
functioning of
tourism sector.
Mobile 8 7 2 0 0 (0%) 17
communication is (47%) (42%) (12%) (0%)
going to be the next
high demand service
that facilitates
tourism in India-

Table 3 presented above is reflecting the firms opinion regarding the use
and importance of ICT in tourism industry as our focus is merely limited
to the tourism industry only. In the table we have shown the various
advantages of ICT and the corresponding responses of the firm
regarding the same. If we observed the responses, we can identify easily
that most of the firms agreed on the different kind of advantages of using
ICT and there are very few firms which denied the benefits of the ICT.
These responses are clearly against the hypothesis we made initially
regarding the use of ICT. However there are several aspects left on
which we need to measure the responses of the firms. In the following
section we will go through these aspects.
Firms’ communication medium- Technology change is taking place
with a very rapid pace, and no firm wants to keep itself behind in the
race from others in adopting the changing environment, especially when
it comes to the communication medium. In the last one decade the
mediums of communications have taken a new shape and the electronic
medium is replacing the traditional medium of communications very
rapidly. However the adoption of these latest communication medium
vary from industry to industry. As our study is limited to tourism
industry we tried to examine the growth of communication medium in
the industry which is highly dependent on better communication today
than before. We included a segment in our questionnaire to get the
information on communication medium used by the firms indulged in
tourism sector. Table 4 is presenting the number of firms along with the
medium they used for the communication purpose. The responses we
have presented in the table show that almost 100% percent of the firms
have adopted the electronic medium of communication. The reason is
quite obvious, the tourism sector is so dynamic that dependency on
traditional medium of communication is no longer required in present
time.

4. Communication Medium
Communication No. of firms Percentage
Medium using
Electronic mail 12 70%
Telephone 4 24%
Letter 0 0%
Others 1 6%
Total 17

Affordability of ICT- Table 5 was showing that firms are rapidly

adopting IT facilities but with the fast development of ICT the question
of cost is obvious. Firms can afford these facilities in two way either by
their own or through outsiders, for which they have to pay some amount.
Whatever the source a firm wants to use it’s sometimes depends upon
the requirement of the facilities. The Pie chart below is showing how the
firms are affording the IT services.
The bar char presented below is clearly showing that mostly firm
affording ICT services by their own. The reason might be the recent
development in ICT due to which the cost has been reduced of affording
these services. However there are still some companies which still
looking to outsiders for using these technologies.

source of ICT facilities

12

10

0
Type of source

insource outsource

Operations performed by the firms using ICT tools- The role of

information and communication technology is so diverse that we can
experience its use in performing multiple operations. From
communication medium to preparing and reporting financial reports the
use of IT has made its prominent presence in the current business
scenario. In order to examine the dominated tasks performed through
ICT by business firms, we asked firms regarding the important roles
they performed with the help of ICT. Table 5 is presenting the
information regarding the same.

5. Operations performed by ICT

Operations No of firms Percentage
Billing 3 18%
Making and getting 3 18%
orders
Inventory 1 6%
management
Information 0 0%
Floatation
Preparing financial 3 18%
reporting
Others 5 40%
Total 17

From the results presented in the table 5 it can be observed that the
dominated tasks performed through ICT include billing, preparing
financial reporting and ordering which are equal in terms of percentage.
However there are several other use also of ICT which are not presented
in list. This also reflects the fact that the use of ICT is very diverse and
making a list of some operations is not enough to define its role.
Challenges- The development and integration of ICT is not an easy
path. It is full of challenges and especially in developing economies
where the problems of better infrastructure and skilled manpower is
already very prominent. However there are some common challenges
before the development and growth of ICT which we can identify easily.
These challenges involve the issue of privacy, fraudulent cases, better
infrastructure, skilled manpower etc. in this section we have presented
some of these challenges and firms opinion on the same.
Compromise with the privacy- The most common concern in using the
IT services is the issue of privacy. There have been various cases around
the world in the past where firms have paid a huge cost in terms of
privacy loss due to misuse of IT services. Millions of people were
victims of identity theft which led to financial loss and even legal
problems. With the increasing demand of these services the case of
frauds and leakage of private information have also been increased. But
what firms actually thinks regarding the privacy issues and use of ICT
services? To find the answer of this question we asked firms their
opinion on privacy issue. The pie chart presented below showing the
three segmentation in which one represents those firms which agreed
that they are compromising with privacy by adopting ICT services,
whereas the other segment represent the firms which think that there is
no compromise by using IT services in terms of privacy. The third one
representing those who have neutral stand on this issue.

ICT a challenge to Privacy

29%
privacy compromise
No issue of privacy
53%
Neutral

18%

As we can see from the pie chart presentation that more than 50% firms
agreed that they are compromising with privacy by adopting the ICT.
The compromise can be in terms of data, identity or any other. However
18% firms has no privacy concern in using ICT. The third segment is
showing that 29% are neutral. These are the firms which represent those
who are not clear about the privacy they are compromising in using ICT.

Level of contribution- Although there have been several issues

regarding the use of IT services, but its adoption to such a large extent
presents a different story. The fast adoption clearly indicates ICT
contribution in easing the business operation. But the question is on the
magnitude of the contribution. In order to look after the contribution of
ICT in the business operations we asked the firms included in the survey
about the contribution of these services in their operations. Table 6 is
presenting the level of contribution and the corresponded firms. The
table shows that only 35% firms agreed that the contribution of ICT is
high in the daily operation, followed by very high (12%) whereas 53%
firms says it’s normal. No single firms assumed the contribution of ICT
as low.

6. Contribution Level of ICT

Level of contribution No. of Firms Percentage
Normal 9 53%
High 6 35%
Very high 2 12%
Low 0 0%
Very low 0 0%
Total 17

Factors influencing the use of ICT in firms- From the above analysis
it is very clear that the role of ICT is becoming very important and it is
increasing day by day. But there are many factors which influence the
use of ICT including availability of infrastructure, skilled employee,
financial constraints etc. we tried to get firms opinion on these factors.
Table 7 is presenting the results below.

7. Influencing factors of ICT

Factors No. of firms affected percentage
Infrastructure 2 12%
Skilled manpower 5 29%
Finance 5 29%
Others 5 30%
Total 17 100%

The table shows that the finance and lack of skilled person (both are
29%) are the major factors which influence the ICT even more than
infrastructure. However 30% of the firms mentioned other factors which
are influential for ICT.
2. Marketing and ICT
From database development, website design to market research,
translation software, direct mail marketing and training, the application
of ICT is critical for a economic success. Digital technology, particularly
the internet, has been described as an enabler of a global marketplace,
characterized by “equal access to information about products, prices, and
distribution” (Strauss et al., 2006). In addition to reduced transaction and
intermediation costs, customers and suppliers adopting the internet for
business may be able to overcome time, distance and location
constraints, in international markets. But the implications of the use of
information and communication technologies (ICT) to conduct
commerce involve, in business to business markets alone, an array of
internal, market and competitive factors, that signal its inherent
complexity (Pires and Aisbett, 2003). From a consumer perspective,
access to more information about the market is complemented by larger
choice sets due to the global reach of the internet, by the ability to
exchange information and opinion with peers, to change their own
perceptions and behaviour in a rapid and largely unchecked manner, and
to define brands on their own (Morrissey, 2005). Since, consumers with
more knowledge will feel more powerful (Foucault, 1972), the
realignment of competitive focus towards consumers' subjective
valuations also pushes consumer‐driven production processes, with
potential implications for the power relationship between consumers and
suppliers. One possibility is for heightened competition and long‐
standing relationships to fall apart. This becomes more important when
it comes to the tourism sector where consumers want true and fair
information at each step, not only information the role of ICT in
marketing tourism products has become so prominent that the survival
of a firm depends upon ICT to a larger extent. As a part of our study the
second segment of the questionnaire consists the information regarding
the ICT and its role in marketing the tourism products.
Social media as a tool of marketing- The role of social media in
marketing the product is spreading with a very fast pace which was not
seen ever before. In today’s technology driven world, social networking
sites have become an avenue where retailers can extend their marketing
campaigns to a wider range of consumers. Chi (2011, 46) defines social
media marketing as a “connection between brands and consumers,
[while] offering a personal channel and currency for user centered
networking and social interaction.” The tools and approaches for
communicating with customers have changed greatly with the
emergence of social media; therefore, businesses must learn how to use
social media in a way that is consistent with their business plan
(Mangold and Faulds 2099). This is especially true for companies
striving to gain a competitive advantage, particularly those in tourism
industy. The creation and accessibility of the Internet have
fundamentally changed how travellers access information, the way they
plan for and book trips, and the way they share their travel experiences
(Buhalis & Law, 2008; Senecal & Nantel, 2004; Xiang & Gretzel,
2010). One significant development in the evolution of the Internet is the
increasing prevalence of social media platforms that enable Internet
users to collaborate, communicate and publish original content such as
blogs, videos, wikis, reviews, or photos (Boyd and Ellison, 2008). Social
media websites, facilitate consumer-generated content (CGC), and are
widely used by online travellers’ (Gretzel, 2006; White & White, 2007).
CGC and reviews sites such as Tripadvisor.com, are widespread and
may even undermine the authority of traditional destination marketing
organisations (DMOs) or conventional advertisements (Gretzel, 2006;
Gretzel, Yuan, & Fesenmaier, 2000; Rand, 2006).
The pied chart presented below is showing the companies which are
using social media as platform for maketing their products. As
presented in the table 59% of the firms including in the survey were
using social media such as Facebook, twitter, etc. as a tool of marketing
their products.
 Social Media as a Tool of Marketing the
Products

41%
59% Yes
NO

ICT and its importance in Marketing- we used a Likert rating scale in

order to measure the role of information and communication technology
in marketing of the products. Table 8 presented below is showing firms
opinion on several aspects of ICT as a tool of marketing including its
role and major advantages. We can see that there is not a single firm
which has denied of any kind of importance of ICT in marketing.

8. Importance of ICT in Marketing

Role Agree Strongl Neutra Disagree Strongly Tota
d y l d disagree l
agreed d
an effective 5 8 4 0 0 17
medium of (29%) (47%) (24%)
marketing
Equally 6 8 3 0 0 17
important as (12%) (47%) (18%)
traditional
medium
Easy and fast 13 2 2 0 0 17
functioning (76%) (12%) (12%)
High demand 8 7 2 0 0 17
of mobile (47%) (41%) (12%)
communicatio
n in future

The result of the study is clearly showing that how important the ICT
has become for the tourism industry. These advantages lead us to reject
our null hypothesis in favor of the alternative one.
Conclusion-
The environment of business is changing globally with a very fast pace.
Failing in adopting these changes has become a question of survival for
the business firms. We conducted a study in this chapter on the role of
ICT in firms’ daily operation by giving a major emphasis on accounting
and reporting aspects. For the purpose of our study we collected a data
from 31 firms out of which only 17 firms were able to qualify for further
analysis. The responses have been collected through a structured
questionnaire which was divided into two parts, one was regarding the
firms operation with reference to financial and accounting aspects and
the other one was on marketing aspect. We formed a hypothesis that
there is no impact of ICT on firms accounting and reporting practices in
favor of the alternative hypothesis that there is a positive impact of ICT
in accounting and reporting practices. The results we obtained clearly
indicates the impact of ICT on the firms operations which lead us to
reject the null hypothesis in favor of alternative one. A future study can
be conducted by taking the financial data of both the firms, those who
are using ICT and those who are not and a comparison can be made
between the financial performances. The shortcoming of our study is the
sample availability which consists only 17 firms in our study. In future
scholars can take a larger sample for the purpose of their study.