Virtual Enterprises' Accounting Difficulties

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Author(s): Panayiotis Tahinakis (University of Macedonia, Greece), John Muylonakis (Hellenic Open University, Greece), Nicolaos Protogeros (University of Macedonia, Greece)and Dimitrios Ginoglou (University of Macedonia, Greece)
Copyright: 2006
Pages: 6
Source title: Encyclopedia of E-Commerce, E-Government, and Mobile Commerce
Source Author(s)/Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59140-799-7.ch190

Keywords: Business & Management / Business Science Reference / E-Commerce

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Abstract

The growth and expansion of enterprises into foreign markets presuppose the aggregation of financial information that includes non homogeneous elements. The purpose of this article is to present several accounting difficulties deriving from the establishment of virtual enterprises and consequently, to set some relevant management and cultural aspects. Emphasis is, also, given to the analysis of the accounting recognition and measurement difficulties deriving from recording accounting information in a virtual enterprise. In conclusion, although there are accounting, as well as, auditing problems of defined, measured and disclosed in a such a type of business, its importance will increase as the capital market grows.

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