IFRS Financial Management: Going Beyond REA-Business Ontology

  • Problem: Looking at details of the REA-Business Ontology some weaknesses can be detected, i.e. especially concerning the recognition of equity and liability positions as well as the inclusion of uncertainties (risks and opportunities) that are intrinsically related to all any future consideration.
  • Research Method: By integrating the three resource categories covered in the balance sheet, i.e. Asset resources, Liability resources and Equity resources as well as the theory of stochastic processes the REA-Business Ontology is expanded in a logical consistent way to the ‚OntoREA© Accounting & Finance Model‘. In this model all facets of the ALE-based Accounting, the future-oriented Finance and the cybernetic planning and control systems from management control are adequately covered.
  • Contribution:
    • Schwaiger: The REA Accounting Model: Enhancing Understandability and Applicability, 34th International Conference on Conceptual Modeling (ER 2015), Stockholm, 2015.
    • Schwaiger: REA Business Management Ontology: Conceptual Modeling of Accounting, Finance and Management Control, CAiSE´16, 28th International Conference on Advanced Information Systems Engineering, Ljubljana, 2016.
    • Fischer-Pauzenberger/Schwaiger: The OntoREA© Accounting and Finance Model: Ontological Conceptualization of the Accounting and Finance Domain, 36th International Conference on Conceptual Modeling (ER 2017), Valencia, 2017.
    • Schwaiger/Nasufi/Kryvinska/Fischer-Pauzenberger/Dural: The OntoREA© Accounting & Finance Model: Inclusion of Future Uncertainty, 12th IFIP WG 8.1. Working Conference, PoEM, Luxemburg, 2019.