...Professional Accounting/Business Organizations The benefits of joining professional business or accounting organizations are numerous. Joining an organization can greatly enhance a young professional’s career. One of the main reasons of joining any organization is to network with others of similar interests. By being a part of a business or accounting organization, I can network with other professionals in my industry. Networking is essential to for me to move up the ladder in the accounting profession. Fellow organization members can also be great learning tools. Veteran members who have been in the industry for many years can use their experience to mentor or teach me new things to enhance my knowledge in my profession. Building relationships and bonds with members in organizations can lead to gaining better opportunities, businesses, occupations, and networks. A professional organization that I can join is the Association of Accountants and Finance Professionals (IMA). This organization’s goal is to provide opportunities to gain further knowledge about the industry through research, practice, teachings, meetings, forums. They also stress that professionals be ethical and use the best business procedures in management accounting and finance. They provide education programs, networking events, up to date newsletters, and information that can improve accounting/finance practices. Conferences and meetings are held every few weeks and are posted on their website. The American...
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...1.0 ABSTRACT Managerial Accounting is tools for business decision making. The use of management accounting information is a key for organizational success. This essay will explain on the importance of managerial accounting process in organization to successfully carrying out the day to day as well as long term activities and goals. First, it describes how the evolution and change in managerial accounting. Second, the essay looks at the role of managerial accountants. Third, it explains several function of managerial accounting that tend to contribute the adds value to organization. 2.0 INTRODUCTION According to the Chartered Institute of Management Accountants ( CIMA ), Management Accounting is defined as the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information for both financial and operating used by management to plan, evaluate and control within an organization and to assure use of and accountability for its resources. The Institute of Management Accountants ( IMA ) defined Management Accounting is a profession that involves partnering in management decision making, devising planning and performance management system and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy. Managerial accounting applies to all types of business such as service, merchandise and manufacturing. It also applies to all forms...
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...1. Discuss the role of accounting and accounting information with regard to control and performance evolution of modern organizations. In you discussion you should consider the positive impact and limitations of accounting and accounting information on MCS. The use of accounting information had been started from the traditional cost accounting developments and has undergone many revolutionary attributes such as ROI measure, capital budgeting, agency theory and transaction cost economics. The primary objective of for–profit organizations is to maximize shareholder value. Thus, the results control idea would be to reward each individual employee for doing what s/he does to increase firm value. However, direct measurements of the individual’s contributions to value creation are rarely possible. Therefore, firms have to look for control alternatives. Most firms base their higher managerial level results controls on accounting measures of performance. That is accounting profits and returns and their components. Short-term accounting profit and return measures provide imperfect, surrogate indicators of changes in firm value. Management myopia is an almost inevitable side-effect of the use of financial results control system built on accounting measures of performance. Management myopia can be avoided at top management levels by holding these managers accountable for increasing market valuations. When markets are informed and efficient...
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...Definition of managerial accounting -- The process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions. Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer. These reports typically show the amount of available cash, sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable, outstanding debts, raw material and inventory, and may also include trend charts, variance analysis, and other statistics. Also called managerial accounting. Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist manage- ment in the formulation and implemen- tation of an organization’s strategy. Management accounting’s essential compo- nent is the formulation and implementation of strategy to help an organization succeed. Role of managerial accounting and the management accountant in a business or organization --- Managerial accountants record financial information for their companies that is used by the organization’s management team to aid in the decision-making process...
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...1.0 Managerial Accounting Managerial accounting is a field of accounting that provides economic and financial information for managers and other internal users (Weygandt, Kimmel & Kieso, 2012). Managerial accounting is an important internal business function. Many companies use managerial accounting to record and report their internal financial information. There are differences between financial accounting and managerial accounting. Financial accounting focuses on preparing financial reports and releasing information to the public while managerial accounting focuses on preparing financial information for internal review and decision making. Managerial accounting offers several important tools for measuring the company operational performance. Common types of managerial accounting include job costing, process costing, activity-based costing and also budgeting. 2.0 Benefits of Managerial Accounting Practices Towards Business Organization Create Competitive Advantage Management accounting can help businesses create a competitive advantage. Many business owners focus on creating consumer goods with lowest-priced and highest-quality product in the market. The ability to review financial information through managerial accounting is important in creating a financial competitive advantage. In 2010, Maxis Berhad wins excellence award in management accounting from the national award for management accounting (NAfMA). One of the winning criteria is the company ability to create...
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...Question 1: * Proficient-level: * There are several important functions performed in an organization, among which accounting is one of them. Define the accounting function and discuss how it differs from double-entry bookkeeping. Answer: According to the Dictionary of Accounting Terms, Accounting is defined as a one step process of recording, measuring, interpreting and communicating financial data by preparing financial statements in order to reflect financial condition and operating performance whereas Double-entry bookkeeping is the record of transactions that require entries in at least two accounts. * What types of information are critical to the performance of the accounting function in an organization? Answer: Accurate financial information is critical to a business, according to the Accounting principle text, information allows informed judgements and decisions by the users of this information such as owners and partners. * Distinguished-level: * What are the three groups of functions performed by accountants? Answer: According to the text, Accountants observe, identify and measure financial terms and are often referred to as analyze. * Discuss the activities that are part of each group. Answer: the economic events are recorded, classified into meaningful groups and then summarized. They (accountants) report on economic events by preparing financial statements and reports, they also interpret these reports for management...
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...sufficient to assure that the Financial Accounting Standards Board will undertake its solution … There must be a suitably high likelihood that the Board can resolve the issues in a manner that will be acceptable to the constituency—without some prior sense of the likelihood that the Board members will be able to reach a consensus, it is generally not advisable to undertake a formal project”. Introduction: The above quotation has been taken from the book of Professor Miller which was published in 1986. Professor says that identifying a problem in the audit process is no guarantee that a solution will be found to the problem. The problem that is referred to in the above quotation is the problems that emerge during an audit that is performed in a business entity. What professor Miller tries to explain is that even if the issue is placed in front of the Financial Accounting Standards Board there is no surety that the Board will take action or responsibility in finding a solution to the problem. When a problem is presented to the Financial Accounting Standards Board there must be reason to believe that the Board members will be able to understand the problem collectively and create a solution to the problem by harmony, if however the chances are not there then an individual or an audit firm should not take up a project formally to try and find resolution though the Financial Accounting Standards Board. Financial Accounting Standards Board The main responsibilities...
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...INTERMEDIATE ACCOUNTING I (ACC 221) 21 Aug 2013 - 15 Oct 2013 TEACHER: Dr. Joseph L. Ilk, CPA, CMA, CVA, CPCM TELEPHONE: Office: (703) 805-4473 Home: (540) 582-6008 E-mail: jilk@nvcc.edu If you e-mail me, please put “ACC 221" and either "E40W" or "E80W" ” in the subject line. If you do not I will not recognize the e-mail and will delete the file. The student needs to put their First and Last Name in the e-mail so I know who it came from. OFFICE HOURS: Mon-Fri 8:00 p.m. - 9:00 p.m.I check my e-mail (jilk@nvcc.edu) every day. NOVA IT Helpdesk: (703) 426-4141 CONNECT HELPDESK: (800) 331-5094 PRE-REQUISITES: ACC 212 - Principles of Accounting II I. THE COURSE: ACC 221, intermediate accounting covers accounting principles and theory, including a review of the accounting cycle and accounting for current assets, current liabilities, and investments. Introduces various accounting approaches and demonstrates the effect of these approaches on the financial statement users II. SCOPE: The study will cover but not be limited to the following areas: Theoretical structure of financial accounting Time value of money Review of the accounting process Cash and receivables Balance sheet Inventories Income statement Plant, property, and equipment Cash flow statement Investments Income measurement and profitability analysis III. Course Learning Objectives: * Comprehend the environment and theoretical...
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...Accounting Proposal Introduction The field of accounting affects every active individual within a society to some extent. Taxpayers, families who budget for the future and businesses evaluating potential products use some form of accounting principles to accomplish the tasks required of them. A functional accounting system is critical to the success and health of any given economy. The purpose of this text is to suggest a solution to the lack of a medium through which accounting knowledge is disseminated. Knowledge of accounting is important in the innovation and improvement of accounting principles. These improvements are important in strengthening the economy of a country to compete in the emerging global market. In general, people would see benefit in their daily lives by understanding how and when to utilize various accounting principles. There are many instances in which these benefits can be seen. Individuals use accounting knowledge to more efficiently manage their financial resources. Also tied to this is the ability to keep accurate financial records in order for individuals to make more informed decisions regarding their money. These decisions include budgeting, fund allocation as well as general money management. These benefits stretch beyond the actual user of accounting principles. If people are better managing their money, they are less likely to fall into debt. If businesses do the same, they will be more averse to failure and bankruptcy. The use of accounting...
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...Introduction: The basic purpose of accounting is to prepare financial information for internal and external users. Accounting standards play a key role in financial reporting and help users to make informed decisions. Levitt (1998) highlighted the importance of accounting standards as ‘educated investors need relevant, useful information to make their investment decisions’ and he emphasises that this can be achieved by high quality accounting standards. Up to 1970s, there was no uniform system for the preparation of financial statements and different companies used different policies, principles and bases according to their needs. This practice led to inconsistency between the financial statements of different entities or same entities prepared by different people, and made their comparison very difficult for different users. Dyson (2011) highlights this situation as ‘what was particularly puzzling to the public was that at the beginning of the week one set of accountants could decide that a company had made a profit and then by the end of that week another set of accountants would decide that it had actually made a loss’. This prompted the accountancy profession to regulate the accounting information and develop uniform principles and procedures which are today known as accounting standards. Accounting standards are statements of standard accounting practice issued by such body or bodies as may be prescribed by regulations (CA 2006, S464(1)). In the UK Financial Reporting...
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...Qualitative characteristics in accounting disclosures: a desirability trade-off Malcolm Smith Associate Professor of Accounting, School of Economics and Commerce, Murdoch University, Perth, Australia A number of studies in the USA, UK, Australia and Canada have addressed the evaluation of the usefulness of accounting information and sought to identify criteria for assessing the quality and utility of financial reports (e.g. Institute of Chartered Accountants in England and Wales (1975), Financial Accounting Standards Board (1980), Institute of Chartered Accountants in Scotland (1988), Accounting Standards Board (1991)). The qualitative characteristics viewed as desirable for the fulfilment of the fundamental objective of communicating decision-useful measurement recognize that all of these characteristics are not simultaneously achievable and that some trade-off is necessary. Examines the nature of this conflict of objectives and attempts to quantify the extent of the conflict for different user groups. Introduction Since the late 1960s research efforts regarding a conceptual framework have been commissioned in response to mounting public and professional pressure with regard to the nature of corporate reporting and deficiencies in the accounting standard setting process. Peasnell[1, p. 254] with respect to the Financial Accounting Standards Board (FASB) conceptual framework observes: “it perceives a need to show that its heart and mind are in the right place: to demonstrate...
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...35-50 (1417 A.H./1997 A.D.) Student Perceptions of the Causes of Low Performance in Principles of Accounting: A Case Study in Saudi Arabia SULAYMAN H. ATIEH (*) Associate Professor of Accounting Department of Accounting and Management Information Systems College of Industrial Management King Fahd University of Petroleum and Minerals Dhahran, Saudi Arabia ABSTRACT. Students at KFUPM in Saudi Arabia were surveyed to determine what they consider to be the major obstacles to successfully completing the two required courses in Principles of Accounting. The students were categorized as either accounting majors or non-accounting majors and were offered 26 potential obstacles plus one open-ended question. The study showed that the most significant obstacle was the negative attitude of students towards accounting as a difficult subject. Differences in responses of the two student groups occurred for only three of the listed obstacles, none of which were considered significant by either group. There was no correlation between the GPAs of the respondents and their views on the 26 obstacles. A comparison of the findings of this study and those of previous research is also discussed. All students in the College of Industrial Management (CIM) at King Fahd University of Petroleum and Minerals (KFUPM) in Saudi Arabia are required to take two courses in Principles of Accounting. The courses are designated as Acct 201 and Acct 202 and they are taught during the somophere year...
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...Ways in which Management Accounting contributes to Green Tourism that can add value to A Country’s Tourism Industry. Management accounting refers to the processes and techniques that focus on the effective and efficient use of organizational resources, to support managers in their tasks of enhancing both customer value and shareholder value. (Langfield Smith & Kim, 2009:6). Conversely, Green tourism describes basic tourism focused on visiting wildlife sites, historical heritage and sustainable tourism which does not damage the sites and communities being visited and a travel which is environmentally friendly. The undesirable state of the natural environment contaminated with harmful substances as consequences of human activities in regards to air, land and water is called Pollution. It is vital the tourism industry thrives being Fiji’s main income earner. To maximize the customer and shareholder value, it is imperative for Fiji to promote Green tourism which can be achieved by reducing pollution. Business firms need relevant and timely information regarding their level of waste disposal. Therefore, the management accounting techniques assist the managers develop strategies to curtail the impact of their business operations on the environment namely, pollution, which would in turn contribute to green tourism attracting more visitor arrivals whilst adding value to Fiji’s tourism. The tourism sector is vital for Fiji’s economy as it provides employment, earned over $850...
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... | |Top of Form | |1. | |IT Has Changed Forever | | | |2. | |Can IT Be Managed Like Accounting? | | | |3. | |Taming the Beast | | | | ...
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...Department Accounting & Control mrinsum@rsm.nl Introduction Financial Management Control Systems (FMCS) form the bridge between the organization’s strategy and its operations. Their purpose is to align managerial behaviour and decision making with organizational goals. Although management controls are typically embedded in the organization’s financial management and accounting systems, their design and use should be based on a thorough understanding of how managerial behaviour is influenced by typical control system elements, such as target setting, performance measurement and rewarding. Indeed, while the proper design of management control systems is paramount for organizational performance, organizational failure can often be attributed to poor design of the organizations management control system. Such poor design may result from a limited understanding of the drivers of managerial behavior in complex organizations. Our challenge thus lies in understanding what are crucial design elements of control systems, what design options are feasible, and how the design and use of control systems should match the organizational context in which they operate. This understanding, rather than the straightforward arithmetic often associated with financial management, forms the core of this course. Course design in a nutshell This course consists of a combination of lectures, articles and cases. The lectures are intended to deal with the theory and concepts that are relevant to accounting and control...
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