EFFECT OF BLOCKCHAIN DISTRIBUTIVE TECHNOLOGY ON THE QUALITY OF FINANCIAL REPORTING IN NIGERIA

Abstract

The mention of blockchain technology alludes to a picture of cryptocurrency in the minds of most finance professionals and accountants but blockchain technology has preceded cryptocurrency. It has been relied upon to create a financial system that entrenches transparency, reliability, and timeliness in financial reporting which are intrinsic values of quality of financial reporting, yet little is known about its potential. This is why the current study examined blockchain technology distributive elements and the quality of financial reporting in Nigeria, using a survey of professional Accountants in Abia and Enugu State. The population of the study consist of 600 Registered Professional Accountants out of which 105 were conveniently sampled to source data through the issuance of a questionnaire (5 Likert scale). Data collected from the survey are analyzed by way of the Simple Multivariate Regression Method. Findings from the study reveal that blockchain distributive element significantly affects the transparency, reliability, and timeliness of financial reports in Nigeria. As a result, the study concludes that the blockchain distributive element is considered by professional Accountants as a disruptive technology that will change the course of traditional financial reporting. Thus, it is recommended that there is a need to encourage companies to adopt the distributive elements of blockchain technology. Doing so will help companies automate various financial processes, such as payments, compliance checks, and reconciliations. By eliminating manual intervention and reducing human errors, blockchain contributes to financial reports' accuracy and reliability. With blockchain, financial transactions can be recorded and validated in near real-time. This provides stakeholders with up-to-date and accurate information about financial activities, enhancing timeliness by reducing the time lag between transactions and their inclusion in financial reports.