Research Director Hiroshi Deguchi (Professor, Faculty of Commerce and Business Administration)
Collaborative Researcher: Akagi Kaya (Full-time Lecturer, Platform for Arts and Sciences)

1. Overview of research findings
This year, we have been investigating the issues surrounding the processing of non-financial information, such as environmental impact, and financial information in a database using an accounting information system. Non-financial information includes a wide range of information essential to corporate management, such as environmental information, such as greenhouse gas emissions and waste emissions, human capital information, and production management information. Deguchi's algebraic multi-dimensional real bookkeeping allows many of these non-financial pieces of information to be expressed algebraically as a double-entry state expression using production accounting input-output journal entries based on real measurement units. This allows corporate information systems that are designed and operated within different frameworks, such as financial accounting and production management, to be designed in an integrated manner using a double-entry state expression in real measurement units (including monetary valuation).
Currently, the International Sustainability Standards Board (ISSB), which is part of the International Financial Reporting Standards (IFRS) Foundation, has finalized the draft of the sustainability disclosure standard on June 26, 2023, and issued a recommendation to make seven disclosures mandatory, including "Scope 1, Scope 2, and Scope 3 greenhouse gas emissions," "transition risks," and "physical risks." In response to this, the Sustainability Standards Board of Japan (SSBJ) has published a draft of the domestic disclosure standard. The final draft will be finalized by March 2025, and the standard will be mandatory for companies with a market capitalization of 3 trillion yen or more from the fiscal year ending March 2027, and will be expanded to companies with a market capitalization of 1 trillion yen or more in the fiscal year ending March 2028. On the other hand, it is expected that disclosure of information on human capital will also progress in the future. In this situation, companies need to renew their corporate information systems, which are currently designed and operated independently for traditional production management, financial accounting, strategic accounting, and human resources management, into systems for the newly required strategic management of companies and information disclosure to stakeholders.
At present, with packages such as ERP, corporate management information appears to be integrated at first glance, but in reality, ERP is evolving in the direction of cloud services that have accounting as a clean core, black-boxed, and peripheral parts that are ad-hoc and connected via API as microservices. In this case, the design of the corporate information system itself remains unchanged from the past, and even though it is called a microservice, the information processing is procedural based on a database, and no functional information processing based on algebraic formulas of complex information is performed.
In this research, we introduced waste and greenhouse gases as stocks with negative value to the input-output accounting of production accounting in algebraic physical bookkeeping, and developed a framework and examples to clarify the information on greenhouse gases and waste disposal in Scope 1 for each production process, and to clarify the greenhouse gases in Scope 2 from the energy input in the input-output accounting for each production process. Furthermore, we clarified a framework for understanding the supply chain using a commodity flow graph for Scope 3.

2. Books, papers, academic presentations, etc.
[Paper (peer reviewed)]
Tomonori Sano, Masayuki Yamamura, Hiroshi Deguchi, Research on Productivity Improvement through IoT Use in Small and Medium-sized Food Manufacturing - Based on Empirical Research Using the OODA Loop -, Co-author, Journal of the Japan Society for Management Information, Vol. 32 No. 3, December 2023, pp. 89-106 DOI https://doi.org/10.11497/jjasmin.32.3_89
[Books and papers (not peer reviewed)]
Hiroshi Deguchi, Accounting System Theory, Hakutosha, February 2024
[Conference presentations, etc.]
Analyzing Relationships between Companies' SDGs Activities and Financial Information using SHAP (peer-reviewed), Kouta Ohi, Takako Hashimoto, Yukari Shirota, Kaya Akagi, Takao Terano and Ryohei Egusa, co-author, 14th International Congress on Advanced Applied Informatics, Koriyama Chamber of Commerce and Industry, Koriyama, Japan, July 2023
What does e-invoice data bring to SNA and Real-Time Economy? , Kaya Akagi, single author, PREPRINT (Version 1) available at Research Square [https://doi.org/10.21203/rs.3.rs-3254344/v1], 2023
Constructivist Social Systems Theory as Knowledge for Dealing with a Reality that Doesn't Yet Exist, Hiroshi Deguchi, sole author, Draft of presentation at the 42nd Conference of the Society for Socio-Economic Systems Studies, Waseda University, October 2023
Knowledge for constructing what does not yet exist and the scope of the foundations of science, Hiroshi Deguchi, sole author, Draft of presentation at the 2023 Annual General Meeting of the Society for the Foundations of Science, Tokai University, June 2023

 

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