Metaverse Technology Integration Transforms Financial Reporting Quality in Accounting Systems

Abstract

The development of extended reality technology, especially metaverse technology all over the globe has brought about interactive digital space that is transforming the way users interact with information. Following this paradigm shift, there has been an increasing need to study the effect of the introduction of the metaverse technology into accounting information systems on the quality of the financial reporting environment, which is a key tool in supporting the decision-making process, improving transparency, and meeting the requirements of the regulatory environment. The proposed work is aimed at analytically assessing the outcomes of implementing the metaverse technology into the accounting information system on the financial reporting environment based on the empirical field study carried out on a group of public and private banks within the Karbala Governorate. The study follows a descriptive and analytical paradigm and involves a questionnaire with two major dimensions: the first determines the level of awareness and usage of metaverse technologies in accounting systems and the second one measures the features of the financial reporting environment based on accuracy, transparency, interactivity, and disclosure quality. The questionnaire was administered to a sample of 71 participants that have been hired to work in the banking industry, and the obtained data were analyzed using the proper statistical procedures to prove the hypotheses proposed. The initial evidence shows growing consciousness of the importance of metaverse technologies as a system that facilitates accounting, and the availability of scalable initial technical infrastructure as well. Moreover, the findings indicate that the introduction of metaverse technology has a positive effect on improving the visualization of financial information, increasing user interaction, minimizing mistakes, and enhancing internal control. The research proposes the implementation of a combined digital approach to allow the activation of metaverse technologies in the accounting systems and the growth of employee skills needed to address the requirements of the new digital reality.

Keywords : Metaverse Technologies, Accounting Information Systems, Financial Reporting, Virtual Reality, Augmented Reality, Transparency, Interactivity