Analysing the applicability of blockchain accounting and its impact on financial reporting

Block chain is being termed as the fifth disruptive innovation in computing. In simplest words, it is a distributed ledger of records that is immutable and verifiable. Block chain is an ingenious solution to eliminate the need for a trusted intermediary in many areas of financial relationships and accounting. Blockchain accounting is a unique technique of movement of information by a distributed ledger and peers to peers model basis. These shared ledgers are in multiple copies, transparent. It is workings through consensus with multiple copies, transparency, disintermediation that can be restricted also. Its working is based on Triple Entry Accounting. It was a process introduce by financial cryptography expert Ian Grigg in Dec. 2005. Triple entry is explained in Lehman's language as it is combination of double accounting system and cryptography. Statistical tests and tools such as Multivariate Linear Model, Structural Equation Modelling have been used to measure the result. The problem in this paper focused on adaptation and application of block chain to measure its impact on productivity and profitability of the firm. This paper will explore the impact of Professional and managerial ability & skill of applying and handling of Block chain accounting on financial reporting of organisations. It is found that there is a significant impact of intercept, management, interest, used to, and artificial intelligent on profitability and productivity. All the parameters and variables (professional and managerial skills) are affecting productivity and profitability in one and all same way.