ABSTRACT
This chapter considers the problems with Accounting Information Systems (AIS) typically used in capital budgeting. It identifies issues with the use of spreadsheets for investment appraisal and the lack of formal systems for evaluating or integrating non-financial information. The chapter explores the emergence of integrated reporting and the challenges for AIS to incorporate integrated thinking into strategic investment appraisal. It also explores a new meaning for capital investment that incorporates all the capitals, not just the financial capital. The most source of professional guidance found on investment appraisal in the UK is contained in a Finance and Management special report. It outlines the key issues in the "art of investment appraisal" and offers principles of good practice and technical advice on the use of financial analysis techniques. The chapter also considers how AIS practice could develop to bring capital investment appraisal techniques up-to-date to tackle modern day decision-making in organisations.
