Building an evolvable prototype for a multiple GAAP accounting information system

In this paper we build a prototype of an evolvable Accounting Information System (AIS) that supports multiple Generally Accepted Accounting Standards (GAAP) reporting. Reporting in multiple GAAP can have different origins: differences in local and tax GAAP, belonging to an economic group or additional regulations. Regulations change frequently: additional GAAP are imposed on companies and GAAP themselves are updated to changing economic conditions. AIS need to support multiple GAAP and evolvability is important because of the changing nature of these GAAP. Normalized Systems Theory (NST) proposes theorems for building evolvable information systems, but lacks specific guidance in business domains (e.g. accounting). Therefore we contribute to literature by showing the feasibility of using NST to design and build an AIS. We use design principles from literature to start building our prototype. The resulting prototype shows into more detail how the design principles are used into an actual software design.