Nothing Special

We all know that the technology has lead, help and influenced us in every aspect of our life. It is very evident that we are now very dependent on the technology. In this new era, the technology has helped us in very fascinating way.

Million of years ago, when the population of human in earth is very little, there wants also are few and simple. As man advances his scale of intelligence, his wants also increases. Early people are limited to his natural way of life or the basic necessity such as food, clothing and shelter but as time goes by his desires increases not only the comforts and convenience but even the luxuries. Human never ends its wants and he is never satisfied so the demand of supply arises and realized mighty occupation over the nature and attains advances in the scale of his intelligence and high degree of improvement in character. One of the method or process by which human or peoples at diverse time supply their needs is commerce. There is no educated or civilized community generate all the supply or the things which it consumed. Part or portion of its basic needs are supplied and interchanged by other communities or districts. Sharing and exchanging supplies to satisfy its needs and demands is the start of commerce. It is very impossible to produce the needed products of people in one nation because abundant product or plant may not be abundant in other area. The continuous growth of the population and the growth of their needs is the start of the commerce and business as well.

One of the seen major components in the society of today is business. It is believed to be the activity that fuels the development in the humanity.

The communication process that relays information about a business entity to interested users is accounting. According to Wikipedia.org (2008), accounting “is the system of recording, verifying, and reporting of the value of assets, liabilities, income, and expenses in the books of account to which debit and credit entries are chronologically posted to record charges in value.

As I mentioned above, accounting starts when the demands and needs of people grow and it all started back in the earliest days of human agriculture and civilization. Accounting is a communication process that relays information about a business entity to interested users. Being the language of business, accounting must be as important in business as in society. The growth and strength of a business entity cannot be monitored properly without accounting, just as the development and stability of society cannot be pushed without business activities. As we are heading to the modern world, the area of responsibilities covered of accounting becomes complex and complicated. The development of Internet and E-commerce has made a significant impact on accounting, a development that makes more important role of accounting in business and society.



But just like in the world where development is propelled by business activities, the internet has developed into a world where business activities have become very common but important events. Buying and selling of goods and services from and to anywhere in the world can now be conducted through the internet. This phenomenon is what we call e-commerce.

Business, therefore, has moved into the Internet. Being the language of business, accounting has to adapt and still work to be the universal language of business even in the internet. This is the direction that adds to the challenge on the works of accountant.

As the business is becoming more complicated because of the emergence of Internet that is continually growing and evolving, the challenges that are being address to the government are also growing. "No single force embodies our electronic transformation more than the evolving medium known as the Internet. Internet technology is having a profound effect on the global trade in services," according to a White House paper in 1997 quoted in one article in answers.com (2008).

Just like in the traditional business, electronic commerce consists of buyers and sellers of a particular product and services over electronic systems such as Internet and other involving computer networks. The emergence of internet has brought a significant lift to the amount of trade conducted electronically. Fund transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collections are some of the variety of innovations in commerce.

Digitized processes are leading productivity since in gains productivity in processes that are less expensive, less time consuming, and more useful.Though it is convenient to use the technology in doing business, there are still many people that are in doubt of their security in doing business online and the risk in doing it in the digital or virtual world. It is true that using the advances in technology is very advantageous for the reason that almost everything is just one click away; there are still drawbacks in which your tough decisions is needed. Since the ecommerce, there is an entirely emerging new set of principles in commerce. There are drastic changes brought to us by technology in the electronic commerce and one of the issues related to electronic commerce is piracy. It is undeniably true that the technology enables us to use services for free (like software) without protecting against piracy. This is only one of the issues that are related to the new digital world of business that needs to have a solution in order to ensure security and privacy. Also, today the meaning of competitor and industry are changing. The emerging principles of electronic commerce are the following: first, is that the physical world is giving way to a place where information is abundant and face to face is limited; second, technology is giving things away for free; third, the meaning of competitor and industry are changing (your current and future customers and suppliers may be your future competitors); fourth, industries are blending and changing, and affiliation agreements allow for the creation of entire product cycles without the ownership of inventory or production facilities; and lastly, pricing models are changing.

It is advantageous to use the available technology that is in the market to put up your own business but there are many risks that need to be dealt. Just like in any phenomenon that resulted with the help of the technology, electronic commerce has also dangers and weaknesses. In one article that I read mentioned that in doing business on the web, legal matters are the first thing to consider. There are risks in almost everything and business is no exception. Risk in doing business is worth when you think that you can make huge revenue. Legal issues are very important to consider when starting a business on the web. The security weaknesses of the electronic commerce like the security intrusions, viruses and other drawbacks like inability to provide services because of some certain instances like attacks and the likes are the continuous struggle evolving technologies.

Piracy is one of the issues that set different challenges. Major threat to individual freedom in facilitating business activities and provide services. Solutions to many problems relating to electronic commerce are not “straightforward”. Because of the vast number of problems related to electronic commerce, government has come up laws that will protect us privacy and security of people to face the challenges and formulate solutions relating electronic commerce problems. The field of electronic commerce governs commercial electronic transactions, primarily those executed through the internet, drafting electronic contracts and user agreement is necessary. There are many laws aiming to facilitate domestic and international dealings, transactions, agreements, arrangements, contracts and exchanges and storage information through utilizing electronic, optical and similar medium, modem instrumentality and technology to recognize the authenticity and reliability of electronic documents related to such activities and to promote the universal use of electronic transaction in the government and general public. These are the following lists of legal services for the components of electronic commerce law: Legal and corporate framework and safeguard for business models; Drafting electronic contracts and user agreements; Internet Jurisdiction; Digital Signatures; Copyright infringement; online publishing; Electronic retailing (e-tailing); Online & email related defamation; Software licenses and various other technology-related agreements; Online content licensing; Privacy and data control issues in a changing legal environment; Liability risks in dealing with third party information; E-Commercial intellectual property basics: copyright, DMCA; Property rights beyond intellectual property: the right to control and protect one’s own computer and online system; Laws validating electronic transactions; Online contract formation; Attribution: identifying the parties; Domain names and their control; Website and online jurisdiction issues; Terms of service: access contracts, online site or service agreements and application service providers; Linking; Liability for informational content; Consumer law issues in e-commerce; E-Mails and evidence in e-commercial contexts; Structuring the analysis of tax issues in the e-commerce context.

In the Southeast Asia, the Philippines become only the third country with legislation to promote and protect transactions. The electronic commerce law addresses the significant legal challenges facing Filipinos who wish to participate in this wealth-creating global phenomenon. According to Philippine Internet Commerce Society, the Philippine Electronic Commerce Act (R.A. 8792) has given many benefits to many Filipinos who wants to venture in the new digital world of business. “First, it gives validity and legal recognition to electronic documents, electronic signatures and electronic transactions. Second, it facilitates the admission of electronic documents and electronic signature as evidence in cases of disputes. Third, it outlaws and penalizes unauthorized access to information and interference in communications systems (i.e., hacking, introduction of viruses and the like). Finally, it calls upon government to formulate and institute programs that are not only supportive of e-commerce but would actually get the government online. Many questions will be raised especially in the first months of the law’s implementation. This is an initial attempt to provide some answers to questions regarding to how the law was intended to mean. This will discuss many, not all, provisions of the law that we feel is the most important for the private as well as public sectors”.

Philippine Electronic Commerce Act recognizes the need for policies and programs to develop human resources for the information age. It also recognizes the need to organize and deploy national information infrastructure.

Section 3 recognizes the authenticity and reliability of electronic data messages, as well as to promote the universal use of electronic transactions. Section 4 apply that any kind of electronic data message or electronic message or electronic document used in commercial and non-commercial activities. Under also in this law, information shall not be denied validity or enforceability solely on the ground that is in the form of an electronic data message or that is merely incorporated by reference in that electronic message. There are many coverage of this law that in one way or another has protected us against potential violence and risk linking to electronic commerce.

The government is keeping it self up to date with the current events and trends to provide sound legal solutions to the future of electronic commerce and business conditions. That is why her Excellency Gloria Macapagal Arroyo has signed a new law that will “establish a central authority responsible for compiling data from financial institutions, facilitate easier verification of a borrower’s creditworthiness. The newly approved Credit Information System Law (CISA) or Republic Act (RA) 9510, is created to provide information on the credit standing of persons and corporations. This law is believed to give electronic commerce a much needed shot in the arm for this market to finally take off in the country. “Tolentino noted that the industry group had pushed strongly for the approval of the CISA as early as last year, when it held a "networking night" during its national congress to raise awareness of the need to enact a law to create a database for credit information. The event featured Amado Tetangco, governor of the Bangko Sentral ng Pilipinas (BSP)--central bank of the Philippines--as the speaker because the proposed law then stipulated that the BSP should be the lead agency to enforce and implement the law”.

The government needs to be updated on the current events of technology and anticipate the future of electronic commerce and other internet and technology business conditions.