Final answer:
The primary disagreement between finance and accounting is often found in the treatment of depreciation and occasionally in the calculation of net income. Finance may focus on strategies to maximize shareholder value, while accounting must adhere to established reporting standards.
Step-by-step explanation:
Disagreement between Finance and Accounting
One common area of disagreement between finance and accounting professionals is the treatment of depreciation. This discrepancy arises because finance often focuses on how to allocate resources to maximize shareholder value (which might prefer certain methods of depreciation for strategic reasons), while accounting focuses on the accurate tracking and reporting of assets and liabilities in adherence to accounting standards. The finance department might prefer an accelerated depreciation method to quickly reduce taxable income, whereas the accounting team will prioritize consistency and adherence to generally accepted accounting principles (GAAP) which might prescribe a different approach.
The calculation of net income can also sometimes be a source of conflict. Although both finance and accounting calculate net income, they might focus on different aspects. For instance, finance may adjust net income for cash flows to better reflect the company's actual financial health, while accounting must follow strict principles that may not allow such adjustments.
Regarding handling of external audits and recording of stock transactions, these are typically areas where finance and accounting work closely together and share common goals, typically with a less pronounced disagreement.