Report of the Committee on Concepts and Standards—Internal Planning and Control.

Abstract The article presents the text of a report issued by the American Accounting Association executive committee in 1974 which identified the potential criteria for choosing among alternative internal accounting information systems. Several approaches have been used and proposed for choosing among alternative internal accounting information systems. Some have stressed alternative measurement methods, some the different information needs of users, and others a more formal evaluation of alternative systems. The historical communication approach parallels the traditional approach to financial accounting theory. It begins with the development of a theoretical structure or framework, which is then translated into a set of rules for data collection and information display. The user decision model approach, focuses on the decision models of different users and the fact that different models use different information. The information evaluation approach is an application of information economics. It stresses a method of analysis--rather than rules--which explicitly treats accounting as a process of choice under uncertainty.