This paper extends the REA framework to include broader definitions of the model terms and encompass the balanced scorecards learning and growth perspective information requirements. The balanced scorecard includes financial and nonfinancial measures from which performance is compared to as part of a strategic management system. The REA framework focuses on economic activity (very close to the traditional accounting view) whereas the balanced scorecard goes beyond economic information to include external information not directly tied to economic events and strategic initiatives. By extending the REA framework financial (traditional accounting information) and nonfinancial information (included in the balanced scorecard) can be tightly integrated. The extended conceptual model furthers the REA ontology and its applications.
Purpose/Motivation
Management makes plans and measures performance against targets. Many organizations have struggled to integrate the information requirements of the balanced scorecard into their strategic management system. The information necessary for the balanced scorecard includes nonfinancial information (measures) that drive financial performance. The purpose of this paper is to modify the REA framework as to include the financial and nonfinancial information that maps to the balanced scorecard in terms of resources, events, and agents. Most of the balanced scorecard is already supported by the REA framework. To view this information in
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