The accounting system is a carefully managed information system which is used for multiple purposes. Traditionally, the uses are categorized using the main headings of decision and control. Numerous conflicts are the consequence of the multi-purpose accounting system. The easy way out is apparently to use different accounting systems for different purposes. That is not the norm. The tensions are managed within a single accounting system and that leads to trade-offs in the accounting system. I will revisit these conflicts of uses of accounting systems using product costing, transfer pricing and fair value as examples.
Indian Accounting Review, 2009, Vol 13, Issue 1, p. 1-13