Evolution Of The Millennium Bug

In Accounting Based Systems

John C. Smith, (E-mail: SmithJ@msud.edu), Metropolitan State University of Denver

Abstract

The year 2000 problem has serious consequences for accountants today and will continue to impact accounting based systems for several years to come.  Year 2000 problems will potentially disrupt calculations of all kinds.  The problem is not limited to just software, but extends to computer hardware and, in fact, any device that uses a microprocessor with date fields such as computerized cash registers and routers.  Accountants need to protect themselves and their clients from year 2000 related systems crashes.  This article provides an overview of what the year 2000 problem is and provides some recommendations for dealing with it.  In general, all businesses (clients, CPA firms, and software venders) should get a written statement confirming year 2000 compliance from the maker of any device they use, sell, or support that uses a microprocessor with date fields. 

Introduction

                In the early years of computer development no one looked far enough into the future to worry about the change from the 20th to the 21st century.  Beginning in the 1960's when computer resources were in short supply, programmers and system architects saved space by truncating the first two digits of the century field, which they presumed to be 19 for the foreseeable future.  For example, the year 1968 was recorded as 68.  The two digit savings may not seem significant today, but it was then.  This practice was continued well into the 1990's by many software companies.  The year 2000 problem is that computer software using only two digits will record the year 2000 as the year 00, which may cause problems with date dependent calculations.  To make matters worse, this practice was imbedded in hardware via BIOS software and computer chips that will not recognize the new century.

                Can computer technology fail in such a major way?  Absolutely yes.  Lou Marcoccio testified before congress that the Gartner Group predicts that 30 to 50% of all companies and government agencies worldwide will experience at least one mission critical system failure (Lou Marcoccio, page 4).  Just this year upwards of 90% of all pagers in the US were silenced when a communications satellite failed (Robert W. Scott, page 17).  Computers do what they are programmed to do.  If the programming is not well thought out, the results may be in error.

Computer Simulation of year 2000 problems

As a part of testing for year 2000 compliance, many companies are simulating turn of the century transactions and calculations.  According to one study (Scott, page 16), the results indicate that about a third of the computers work just fine, a third shut down entirely, and a third work but yield incorrect answers.  The problem isn't so much with computers that shut down entirely because those should be caught before the year 2000 arrives.  The main problem is with computers that work and give answers that are believable, but inaccurate.  These are the problems that will be difficult to detect.  A graduation agreement that is off by a few transfer credit hours or a payroll check that is off by a few dollars will be difficult to catch.  A computer generated letter indicating that a student cannot graduate because he or she has not been born will result in a quick response from the student.  We do not have to wait for the year 2000 to see year 2000 problems nor will they end with the year 2000.  Some year 2000 lawsuits began in 1995.  Year 2000 problems will not end with the new millennium.  The problems and lawsuits resulting from non-year 2000 compliant hardware and software will continue for many years.  It is almost certainly to have to wait for the year 2000 to see year 2000 problems nor will they end with the year 2000.  Some year 2000 lawsuits began in 1995.  Year 2000 problems will not end with the new millennium.  The problems and lawsuits resulting from non-year 2000 compliant hardware and software will continue for many years.