Database Systems Relational System and Future of Accounting

Database Systems, Relational System and Future of Accounting

Database System � Database �A set of interrelated records, centrally coordinated files form a database � Database system � The database, the DBMS, and the application programs that access the database through the DBMS are referred as database system 2

Database system The Logical view How people conceptually organize and understand the data The physical view How and where data are physically arranged and stored in the computer system 3

Schemas � Schema describes the logical structure of the database � Three level of schema : � 1. The conceptual-level schema � 2. The external level schema � 3. The internal level schema 4

Advantage of database systems 1. Data Integration 2. Data Sharing 3. Minimal data redundancy and data inconsistency 4. Data independence 5. Cross-functional analysis

Relational Database � Relational data model represent conceptual and external level schemas as if data are stored in the tables. � Basic Requirement of a relational Database � 1. every column in a row must be a single valued � 2. Primary keys cannot be null � 3. Foreign keys, if not null, must have values that correspond to the value of the primary key in another tables 6

Continued � 4. All non key attributes in a table must describe a characteristic of the object identified by the primary key. 7

Two Approach of Database Design � 1. Normalization ◦ Design that assumes that everything is initially stored in one large table 2. Semantic data modeling Designer uses knowledge of a business process and information needs to create a diagram that shows what to include in the database.

Database system and the future of Accounting Database systems have the potential to alter external reporting significantly. In the future, companies may make a copy of the company’s financial database available to external users in lieu of the traditional financial statement. Relational DBMS are capable of integrating financial and operational data. Relational DBMS have the potential to increase the use and value of accounting information.