BLOCKCHAIN-BASED SMART CONTRACTS AND THEIR IMPLICATIONS FOR REVENUE RECOGNITION IN FINANCIAL ACCOUNTING

This study investigates the transformative role of blockchain-based smart contracts in revenue recognition within Ghana's emerging corporate sector, where manual accounting systems have led to misstatements and investor distrust. With increasing global investments in blockchain technology and Ghanaian firms showing only a 12% adoption rate by 2023, this research addresses a critical need for automation, accuracy, and transparency in financial reporting. The study aims to assess how smart contracts-through automation, transparency, immutability, and trustlessness-impact the accuracy and timeliness of revenue recognition. Employing a descriptive design based on secondary data from 18 firms across five industries, the analysis uses correlation, regression, paired t-tests, and chi-square tests. Results reveal a significant increase in revenue recognition accuracy from 78% to 93% (t = 6.98, p < 0.001), a reduction in reconciliation delays from 12 to 7 days (t = -5.84, p < 0.001), and a drop in revenue misstatements from 15 to 5 (χ² = 6.67, p < 0.01). The correlation coefficient between smart contract adoption and audit efficiency was r = 0.85, while regression analysis confirmed that automation, transparency, and immutability significantly predicted revenue accuracy (R² = 0.79, p < 0.001). These findings imply that blockchain smart contracts enhance financial integrity, investor trust, and operational efficiency. The study recommends regulatory updates, firm-level integration strategies, and cross-sector collaboration to scale adoption. This work bridges theory and practice, offering new insights for accounting standards, policy frameworks, and technology-driven financial governance.