The Role of Open Book Accounting and Blockchain Technology in Developing Cost Accounting Systems and Achieving Greater Transparency in Supply Chains – An Applied Study in Iraqi Airways

Abstract

This study intends to assess the impact of applying open book accounting endorsed by blockchain technology on improving transparency and efficiency in the supply chains of Iraqi Airways. The importance of the study originates from the critical need to enhance the accuracy of cost reports, facilitate data updates, and reduce financial disputes in view of the challenges confronted by traditional systems in cost accounting and supply chain management.The study problem originates from in the insufficiency of transparency, high error rates, and setbacks in updating cost data, which lead to frequent financial disputes and high monitoring costs. These issues prevent operational efficiency and negatively affect both operational and financial performance of the organization. The study employed a descriptive analytical applied approach, obtaining and examining actual secondary data from the company’s records and reports for two periods before and after the implementation of the open book accounting system supported by blockchain. The study emphasized on principal measures like error rates in cost reports, data update time, level of transparency, dispute rates, and costs of monitoring and auditing expenses. The study results demonstrated notable improvements after implementation such as error rates declined from 12% to 2%, data update time decreased from several days to minutes, transparency levels increased from 40 to 85 out of 100, and financial disputes declined from 15% to 3%. In addition, there were substantial savings in monitoring and auditing costs, demonstrating the economic feasibility of the application. According to these findings, the study recommends that the adoption of open book accounting endorsed by blockchain technology in aviation institutions and supply chain companies to improve financial and operational efficiency, enhance transparency, and reduce waste and disputes. In addition, suggests providing appropriate staff training, enhancing digital infrastructure, and cooperating collaborating with regulatory authorities to facilitate integration processes and ensure regulatory adherence.