The Impact of Blockchain Technology on Financial Reporting Practices in UAE

Abstract:
The motivation for conducting this study stems from the increasing interest in blockchain technology and its potential to revolutionize financial reporting practices. Given the UAE’s progressive stance on technology adoption and its strategic initiatives to integrate blockchain across various sectors, this papre aims to explore the specific impacts of blockchain on financial reporting accuracy, transparency, and fraud reduction within the region. The population for the study includes financial reporting professionals, auditors, regulatory authorities, financial technology experts, and academics within the UAE. From this population, a representative sample was drawn to ensure diverse perspectives and comprehensive insights. The study tool utilized is a structured questionnaire designed to capture detailed information on the respondents’ perceptions and experiences with blockchain technology in financial reporting. The questionnaire was rigorously tested for reliability and validity. The results of the study reveal strong positive correlations between blockchain technology and the accuracy (O = 0.714), transparency (O = 0.698), and fraud reduction (O = 0.702) of financial reporting, with all relationships being statistically significant (P < 0.000). These findings underscore the transformative potential of blockchain technology in enhancing financial reporting practices by providing an immutable, transparent, and tamper-proof ledger. Future contributions of this research include providing a robust empirical foundation for further studies on blockchain technology in financial reporting. It highlights the need for expanded research across different regions and contexts to validate the findings and explore the long-term impacts of blockchain adoption. Additionally, the study suggests practical recommendations for organizations in the UAE to leverage blockchain technology for improved financial reporting accuracy, transparency, and security, thereby fostering greater trust and efficiency in financial practices.