Algorithmic Accounting: Embedding Recognition and Trust into the Transaction Infrastructure; Oil and gas industry case study

Articles in Press

Document Type : Original Article

Authors

1 Associate professor of accounting,university of Isfahan, Isfahan,Iran

2 Ph.D. Student, Department of Accounting, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

10.22108/far.2026.148858.2222

Abstract

Contemporary accounting systems rely heavily on institutional trust mechanisms—such as reconciliation, auditing, and regulatory oversight—to ensure the reliability of interorganizational financial information. While effective, this architecture imposes substantial economic and informational costs, particularly in complex supply chains characterized by high transaction volumes and multiple autonomous actors. This study addresses this limitation by developing and evaluating a decentralized accounting information system that operationalizes algorithmic accounting through smart contracts and blockchain-based triple-entry bookkeeping. Using a design science research methodology, we construct a hybrid accounting architecture that embeds accounting recognition rules, internal controls, and settlement logic directly into transaction execution. Focusing on the oil and gas supply chain, the system generates accounting records contemporaneously with economic events, eliminates interorganizational reconciliation by design, and produces a shared, immutable accounting record across participants. The findings demonstrate that accounting trust can be internalized computationally, transforming trust from an institutional outcome into an explicit, measurable property of the accounting infrastructure. This reconfiguration reduces information asymmetry, enhances real-time transparency, and shifts assurance from ex post verification to ex ante enforcement. The study contributes to accounting theory by providing empirical grounding for algorithmic accounting and offers a practical blueprint for rethinking accounting infrastructures in the digital economy.

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Main Subjects

Financial Accounting Research

Articles in Press, Accepted Manuscript
Available Online from 10 August 2026

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History

  • Receive Date: 10 May 2026
  • Revise Date:
  • Accept Date: 10 August 2026

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