Accounting Treatment for Online Business-A Case Study on Amazon

Abstract

Growth of e-commerce has revolutionised the way of conducting business. The buyers and the sellers are a mere click-of-the-mouse away. In this endeavour, dot-com companies have played a dominant role. The upsurge and recent slump of such companies raised numerous questions about the viability of their business models. E-business significantly changes the way business is conducted. In particular, e-business requires changes in organizational structures, business partnerships and alliances, delivery mechanisms and methods, and the legislation and regulations under which businesses operate. E-business also introduces new risks that enterprises may need to address by implementing a technology infrastructure and controls to mitigate those risks. Furthermore, e -business alters the roles and responsibilities of employees and different levels of management, therefore affecting personnel requirements. Moreover, e-business affects not only business conduct, but also the character of business itself.