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Module 9 self learning module

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ACCO 20153: Accounting Information System Module 9 RESOURCES, EVENTS, AGENTS (REA) DATABASE MODELLING Overview: REA accounting model is a part of enterprise database system and supports enterprisewide planning. It encompasses both operational and accounting transactions, thereby expanding the scope and usefulness of accounting information system to provide both financial and nonfinancial information. Outputs from REA are subsequently produced by assembling the data required from various sources which means that output is more useful for decision making. Module Objectives: After successful Completion of this module, you should be able to: • Identify the economic foundations of the resources, events, and agents (REA) model. • Understand the key differences between traditional entity relationship modeling and REA modeling. • Identify the structure of an REA diagram. • Create an REA diagram by applying the view modeling steps to a business case. • Create an entity-wide REA diagram by applying the view integration steps to a business case. Course Materials: TRADITIONAL APPROACHES: USER-VIEW ORIENTATION When data-modeling and IS design is too oriented toward the user’s views, problems arise: • multiple information systems • duplication of data • restricted user-view leads to poor decision- making • inability to support change RESOURCES, EVENTS, AND AGENTS MODEL (REA MODEL) The REA model is an accounting framework for modeling an organization’s critical resour ...
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