Accounting: "the fairest invention of the human mind." (Goethe) 2.1 Introduction As intimated by its title, this thesis proposes the inclusion of information on flexibility as a means of enhancing the accounting information systems of business organisations. However, the inclusion of such information would be incomplete without a prior discussion of the purpose of Accounting and its product, accounting information. In this chapter the nature and role of Accounting is considered and the classification of information as management accounting information and financial accounting information is discussed. The purpose of providing accounting information, as well as the qualitative characteristics of decision-useful information, is addressed. In the conclusion the users of accounting information are identified and their needs summarised. 2.2 The nature of Accounting Before the nature of Accounting can be addressed, the field of study must first be delineated. This entails an identification of the area of interest and of the borders of the discipline in relation to neighbouring disciplines. Thus a successful definition of Accounting should clearly delineate the boundaries of the discipline at a point in time, give a precise statement of its essential nature, and be flexible so that innovation and growth in the discipline can be accommodated. A number of definitions of Accounting have appeared in the literature, each attempting to demarcate its field of study. Developing a single definition of Accounting is however beset with difficulties. The first difficulty stems from the dynamic nature of Accounting. Glautier and Underdown (1986, p.3) point out that the University of Pretoria.etd
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