Detailed analysis of REA ontology

Abstract

The paper addresses REA (Resource-Event-Agent) domain specific ontology that is primarily focused on value modeling in business processes. REA ontology which historically originates from accounting information systems, gradually developed to cover all areas where value modeling can be utilized. After a short introduction, a core REA pattern is introduced and analyzed from the view of its basic entities and the relationships between them. Next, additional crucial concepts of REA ontology and their relationships are gradually elucidated and analyzed from the view of DEMO (Design & Engineering Methodology for Organizations). The paper also describes the current definition of economic transaction that is used as a basis for REA state machine. The discussion and conclusion sections summarize and assess the pros and cons of REA ontology and propose a way forward for further research. © Springer International Publishing Switzerland 2014.