Evolving Software Development Methodologies: The Search for Accounting Clarity

• In Event: AIS Potpourri

Abstract

For many years, most IT departments used a similar software development methodology called waterfall. However, over the years, methodologies used by developers have evolved into agile methodologies. The primary accounting standard to determine the appropriate treatment for determining costs uses the language of waterfall. Organizations using the agile methodologies are having to adjust to standards that are very unclear for their situation. To examine this issue, a new construct called accounting clarity is introduced in this research. This is an agreement between IT and accounting regarding the treatment of software development costs. This study will show the coordination between the two groups is essential when agile development methodologies are used.

Authors

• Amy Igou, University of Northern Iowa

• James Nelson, Southern Illinois University - Carbondale

• Kay M. Nelson, Southern Illinois University - Carbondale