Question

Does the present electronic age of technology make the questions of "books" irrelevant? Can one set transactions really yield different "sets of books?" Or are we just looking at the same data in different reports? (Comment on this question with the understanding that you are not expected to be an information technology expert.)

Answer 1

The present electronic age of technology does not make the question of books irrelevant. Same set of transactions can yield different sets of books.

Technology only acts as a means of recording transactions and maintaining books. Recognition of assets, liabilities, income and expenses are determined by relevant GAAP used, examples being IFRS, US GAAP, accounting rpactices of other countries. Therefore, depending upon the accounting conventions used for recording assets and liabilities, and other elements of financial statements, same set of transactions, even in this age of technology can result in different sets of books.