Accounting Transformation in the Face of Socio-Military Challenges

Abstract

The full-scale war has caused a profound transformation of the economic environment, accompanied by the destruction of assets, disruptions to supply chains, business relocation, increasing cyber threats, and the need to ensure business continuity. These changes necessitate the adaptation of accounting to the new conditions of economic activity, as traditional approaches to organizing accounting processes fail to provide an adequate level of timeliness, reliability, information security, and decision-making support under wartime challenges. The purpose of the article is to identify directions for adapting accounting to the conditions of a full-scale war through the use of modern information technologies. The research hypothesis rests on the assumption that digital technologies constitute a key instrument for transforming accounting and can facilitate the prevention, mitigation, and elimination of the consequences of wartime threats to businesses. The study systematizes the main areas of the impact of the full-scale war on the economy and business activities, including the destruction of assets and businesses, compensation for war-related losses, ensuring transparency, cyber threats, business relocation, war-related risks, remote electronic communications, and hybrid threats. The corresponding directions of digital transformation of accounting are identified, including the use of artificial intelligence technologies to assess war-related losses; blockchain to ensure the integrity of accounting information; cloud services to maintain the continuity of accounting processes; electronic document management and government digital services to automate information exchange; Internet of Things technologies for the automated documentation of business transactions; as well as remote communications and IT outsourcing to organize the work of accounting personnel under wartime risks. The proposed approaches contribute to enhancing the reliability of accounting information, strengthening information security, ensuring business continuity, and improving information support for management and business recovery processes under the conditions of a full-scale war