Shared ledger accounting - Implementing the economic exchange pattern in DL technology

Abstract

DLT suggests a new way to implement the Accounting Information System, but after reviewing the current literature our conclusion is that an ontologically sound consensus-based design is missing to date. Against this research gap, the paper introduces a DLT-based shared ledger solution in a formal way and compliant with Financial Reporting Standards. We build on the COFRIS accounting ontology (grounded in UFO-S) and the blockchain ontology developed by De Kruijff & Weigand that distinguishes between a Datalogical level, an Infological and an Essential (conceptual) level. It is shown how consensual and agent-specific parts of the business exchange transaction can be represented in a concise way, and how this pattern can be implemented using Smart Contracts.