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 Most problems in accounting reduce to one of choosing among two or more information systems. In the seventies , researchers relied heavily upon utility theory to provide normative models for the evolution of information  system alternatives . In recent years , however , research has shown that expected utility theory suffers from several problems and limitations . As a consequence , an alternative model, called prospect theory has been developed . This research attempts to assess the role of both utility and prospect theories with respect to information evolution an the ranking of alternative  information system . it examines to what extent prospect theory was able to overcome the major drawbacks of expected utility theory respecting information evolution. Moreover , an outline of the main limitations of the prospect theory as theory as theoretical framework for choices between alternative information systems was made. Pin –pointing such limitations, enabled us to outline future possibilities for further developments of theoretical framework in question.