...The Journal of Applied Business Research – July/August 2010 Volume 26, Number 4 A New Look At Management Accounting Mohammad Talha, King Fahd University of Petroleum & Minerals, Saudi Arabia John B. Raja, Multimedia University, Melaka, Malaysia A. Seetharaman, S P Jain Center of Management, Singapore ABSTRACT This paper presents a comparison of the traditional management accounting with the new approach of management accounting with the use of latest information technology and manufacturing technologies. The information and data of the research were gathered from various sources of secondary data. Many online articles and journals were available through these search engines such as Google, Infoseek, Lycos, Excites and Altavista. These articles were downloaded from Internet Websites including IFAC library, CPA online newsletters, Institute of Management Accountants, CIMA (Chartered Institute of Management Accountants), Technical Bulletin and Institute of Commercial and Financial Accountants. The modern techniques used in Management Accounting are discussed. TQM (Total Quality Management), ABC (Activity Based Costing) and BSC (Balanced score card) are some of the tools that are introduced in management accounting to keep up with the latest technology. This research highlights the emergence of new, more proactive management accounting that increasingly becomes part of the management team with the business process. The future roles and expectations of these accountants in...
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...Development Challenges Faced by Accounting Profession ACCT 5100 Professional Development Challenges Faced by Accounting Profession Introduction Accounting has evolved, like many other professions, over time and is playing an increasingly significant role in today’s business environment. The key accounting practices are still identify, measure and communicate the economic condition of an entity with both inside and outside stakeholders. Accounting professionals have widened their attention beyond technical skills to incorporate social implications over the past several decades. Over the past few years, the whole world witnessed the impact of modern advances in information technology, globalization, and many other factors, all of which increased the public awareness of changes in global business environment and also brought many challenges to this profession. In response to these difficulties, modern accountants must develop a broader range of knowledge and skills to better perform their financial responsibilities. This paper examines several key challenges concerning the profession: 1) independence, 2) globalization and IFRS, 3) knowledge and skills gap. Challenges faced by accounting profession Independence and objectivity Independence is not a new issue faced by accountants; however, it has been and always will be one of the biggest challenges faced by this profession. Accounting to the research done by Beverley, Barry, Philomena...
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...Development Challenges Faced by Accounting Profession ACCT 5100 Professional Development Challenges Faced by Accounting Profession Introduction Accounting has evolved, like many other professions, over time and is playing an increasingly significant role in today’s business environment. The key accounting practices are still identify, measure and communicate the economic condition of an entity with both inside and outside stakeholders. Accounting professionals have widened their attention beyond technical skills to incorporate social implications over the past several decades. Over the past few years, the whole world witnessed the impact of modern advances in information technology, globalization, and many other factors, all of which increased the public awareness of changes in global business environment and also brought many challenges to this profession. In response to these difficulties, modern accountants must develop a broader range of knowledge and skills to better perform their financial responsibilities. This paper examines several key challenges concerning the profession: 1) independence, 2) globalization and IFRS, 3) knowledge and skills gap. Challenges faced by accounting profession Independence and objectivity Independence is not a new issue faced by accountants; however, it has been and always will be one of the biggest challenges faced by this profession. Accounting to the research done by Beverley, Barry, Philomena...
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...Executive summary This research concentrates on the relation between globalization and accounting and how it affects it. The paper analyses the effects of globalization from three different sections, the effects on management accounting, the effects on the Generally Accepted Accounting Principles (GAAP), and negative and positive effects on accountants. From the GAAP perspective, the accounting principles seem to lose supremacy in the world due to the upcoming international rules for financial accounting (Cline 2010). According to management accounting, globalization seems to impose businesses to look deep into the compliance of standards. With regard to threats and opportunities resulting from globalization, the study focuses on what accountants can do to better themselves in accordance to globalization. Introduction The business environment appears to get smaller with each passing day. Therefore, accountants face troubles in remaining protected from the progressions that occur around the world (Diaconu and Coman 2006). Globalization hint’s at the regularly changing procedure of incorporation and connection among governments, individuals and organizations. The key three things that incorporate globalization are investment, international trade and information technology (Diaconu and Coman 2006). Globalization moves the world to another level and places it to more at the leading edge statures reliably. Outstandingly, globalization procedures have both negative...
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...International Journal of Trade, Economics and Finance, Vol. 1, No. 1, June, 2010 2010-023X 103 Abstract—Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs information technology (IT) investments and the rapid pace of technological change. Organizations are responding in different ways and at different rates to the wide range of IT based opportunities and pressures. The purpose of this paper is to focus on the effects of IT related organizational changes on the management accounting function and to contribute to the body of knowledge about to what extent IT affects the ability to solve accounting tasks. The relationship between IT and accounting practices was investigated qualitatively using six case studies and we will measure the impact of IT on accountants’ tasks. The findings suggest a tendency for change and the decentralization of accounting tasks. Index Terms—Accounting, Accounting Information Systems, Financial Documents, Information Technology, Management Information System. I. INTRODUCTION Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs IT investments and the rapid pace of technological change in combination with escalating costs of research and development (Frishamar, 2002). The role of information technology (IT) has shifted over the last decades (Teng & Calhoun, 1996) to become an important part of how ...
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...1970’s was a time where there was an emergence of new research directions around the organizational and social aspects of accounting. During this time the accountancy profession was rapidly growing and moving into many new areas, there was a new standard-setting process, greater use of accounting controls in both private and public-sector enterprises, new forms of social accounting, intervention by government in the inflation accounting debate and calls on accounting to change in diverse directions. All of these rapid changes were forcing accounting academics to analysis the changing world of accounting more closely. (p454 30 years of historical accounting research) One of the changes in accounting analysis was a move towards accounting history. Hopwood (1976)called for historical studies in terms that would later be labelled as “traditional”, despite the label it would receive in the future, it still represented an awareness that historical studies would soon be an important source of understanding of the roles of accounting in organizations and society (reference 30 years of historical accounting research). Historical research was slow to emerge, as was highlighted in the Accounting, Organizations and Society journal where between 1976 and 1985 only 13 historical papers were published. Historical research came to the fore during the period from 1986 and 1990 where 22 historical papers were published in the journal Accounting, Organizations and Society, this period was also the...
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...Economics and Finance, Vol. 1, No. 1, June, 2010 2010-023X Information Technology roles in Accounting Tasks – A Multiple-case Study Maria do Céu Gaspar Alves Abstract—Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs information technology (IT) investments and the rapid pace of technological change. Organizations are responding in different ways and at different rates to the wide range of IT based opportunities and pressures. The purpose of this paper is to focus on the effects of IT related organizational changes on the management accounting function and to contribute to the body of knowledge about to what extent IT affects the ability to solve accounting tasks. The relationship between IT and accounting practices was investigated qualitatively using six case studies and we will measure the impact of IT on accountants’ tasks. The findings suggest a tendency for change and the decentralization of accounting tasks. Index Terms—Accounting, Accounting Information Systems, Financial Documents, Information Technology, Management Information System. I. INTRODUCTION Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs IT investments and the rapid pace of technological change in combination with escalating costs of research and development (Frishamar, 2002). The role of information technology (IT) has shifted over the...
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...Introduction Accounting is the core of a business or organization as it helps to provide the necessary information which is required to make important economic decisions to ensure the organization or business is moving forward. In the business world, companies are now looking for something to be understood mainly to contribute on its effective business and management progress. The advanced pace in technology and the increasing level of competition among organization structure drastically impacts the position of an accountant. The information required by a company to make decision to make sure it is moving forward is provided by accounting. Both managerial and financial accounting plays a big role by working along to ensure the growth of the organization is in the right path. However, both managerial and financial accounting has its own purpose of improving an organization or a business. “Earlier financial accounting experiments typically sought to determine whether specific accounting policy choices would affect investors’ decisions.” (Pg778-experimental research) (122words) Role of Financial Accounting Every organization or business should be able to know their monetary progress or else they would never be able to evaluate if the business is profitable or the other way around. “The purpose of financial accounting is to provide users of financial statements with information that is useful for efficient decision making.”(accounting for intangible-pg102).It prepares the...
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...was born in 1940. He is an American accounting academic, and a Professor of Accounting at Carnegie-Mellon University and Arthur Lowes Dickinson Professor of Accounting at the Harvard Business School. He had wrote a journal entitled “The Evolution of Management Accounting” in 1983. The purpose of this article is to summarize the development of management accounting, including the new demands for management information, and to develop a research strategy to meet these demands i) THE EVOLUTION OF MANAGEMENT ACCOUNTING (From Robert S. Kaplan point of view) In his paperwork, he divided it into five sections. • Section 1 - Development of cost accounting practices from the early textile mills and railroads (circa 1850) through the formation of the great industrial enterprises in the U.S. and the emergence of the scientific management approach. • Section 2 - Management control innovations of the DuPont Corporation and the General Motors Corporation after its reorganization by Pierre du Pont and Alfred Sloan in 1920. • Section 3 - Development in cost accounting and managerial control form 1925 to the present. • Section 4 - Challenges from the contemporary environment that may not be met by the accounting practices developed more than 60 years ago for a substantially different competitive situation. • Section 5 - Agenda for field based research to document or develop innovative management control practices appropriate for the changing industrial environment. ii)...
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...DATABASE DESIGN Research Paper You are to write a research paper about an approved topic in the field of Information Technology (IT) Management, preferably in the area of Database Systems. The topic must be of current interest to the IT professionals. The deadline for the topic approval is September 20. You must turn into me one page (single-spaced) ‘Abstract’ of your paper by that date. A partial list of journals which publish articles pertaining to the IT area is attached. These publications are some of the source for your research work. Your paper must be between 12 and 15 pages of typed, doubled-spaced text, not including your references and any appendices or attachment. Plagiarism will result in a grade of zero. Your research paper is due on November 29. It will be graded according to the criteria on the attached page Suggested Structure of Research Paper Abstract: Half-page (single spaced) summary of the paper I. Introduction: - Problem Background -Problem Importance - Purpose and contents of this paper i. Target audience of the paper ii. Overall objective iii. Within the overall objective, the specific issues or question addressed in the paper iv. A precise statement of the content of the paper v. Scope and limitation of the paper vi. Usefulness of the paper - How would the target audience...
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...BA Honours First Year Semester A Economics for Business Accounting for Business Language or Legal Issues for Business The Business Professional* Second Year Semester A Managing People Specialist or Generalist Option Language or Specialist Option Enhancing Employability* Semester B Semester B Methods and Systems for Business Decisions Principles of Marketing Language or Global Perspectives in Business Exploring Business Ethics Specialist or Generalist Option Language or Specialist Option Enterprise Specialist Options Accounting Human Resources Management Marketing Management *Those choosing the Accounting, Marketing or Human Resources specialism in Year 2 will have a subject-specific Enhancing Employability module. 1 Specialisms Accounting Semester A Business Analysis Tools Management Accounting for Business Decisions Semester B Analysing Financial Information Financial Management Human Resource Management Semester A Labour Market Policy Organisational Psychology Semester B Cross-cultural Management Individual Employment Law Marketing Semester A Marketing Planning 21st Century Consumer Marketing Semester B Marketing for the Small Enterprise Cross-cultural Management Management Semester A Management Accounting for Business Decisions Project Planning and Control Marketing Planning Semester B Principles of Operations Management 2 Generalist Semester A Module from Optional Subject...
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...Information Systems and Software Applications The world that we live in today is continuously changing and expanding. In order to have and maintain a successful business, you must integrate and use the various forms of technological advancements. Software applications and information systems facilitate businesses in managing all aspects of their business dealings/associations. Accounting, Human Resources (HR) and Marketing are a few of the many different applications that are used in assisting companies in becoming successful. Software and applications for every department are specialized to help the department benefit the organization as much as possible. Accounting The accounting department maintains a record of the funds the organization receives, expends, and has in different accounts, such as banks and stocks. Accounting software has functions for accounts receivable, accounts payable, ledger, inventory, billing, purchasing, and sales. Six different components make up Accounting Information Systems. People, Procedures and instructions, Data, Software, Information technology infrastructure and Internal controls and security measures. Human Resources The human resources department’s main function is to recruit, train, and retain the workforce. Human resources software helps keep track of hours worked and payroll, benefits administration, recruiting, training, HR management information system, performance record and employee self-service. The goal of HRIS is to merge...
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...Assignment on ACT-201 Role of “ICAB” and “ICMAB” in Accounting Development of Bangladesh Submitted for: Netai Kumar Saha Lecturer Dept. of B.B.A East West University Submitted by: Md. Saim Ur Rahman Id: 2013-1-10-130 ACT-201 Sec-04 Submission Date: 29th March, 2015 Plot No-A/2, Main Road, JahuruIslam City Aftabnagar, Dhaka-1212, Bangladesh. ICAB The Institute of Chartered Accountants of Bangladesh (ICAB) is the national professional accountancy body in Bangladesh. It is the sole organization in Bangladesh with the right to award the Chartered Accountant designation. It has around 1,400 members. The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). Top of Form Bottom of Form Establishment: The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). ICAB's Administrative Ministry: The Ministry of Commerce, Government of the People's Republic of Bangladesh is the administrative Ministry of ICAB. ICAB's Vision: To meet the ever-changing global economic demands dominated by WTO regime, the ICAB is fast becoming a body of professionals whose expert services will be highly sought after- - To anticipate, meet and exceed the rising...
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...Climate Change and its Effects on Accounting Practices William Conder Accounting 5233 November 26, 2013 Abstract in Climate change is a subject that invokes many different opinions and reactions from different people in different regions. Although there is a general consensus in the scientific and environmental advocate communities as to that the worldwide climate is changing, specifically warming, and that the activities of man are the primary cause, as for the degree of change and the possible effects, there is anything but a consensus. There is a fairly new concept that is taught in many businesses, colleges, and universities called the triple bottom line. This is referring to the three things that businesses should concern themselves with and strive to achieve excellence in if they wish to be sustainable; they are “profit, people, and the planet” (Elkington, 1995). The purpose of this research is to find out and explore some different ways that businesses today are utilizing good sustainability practices, and dive into some other areas like accounting for carbon emissions, and also seeing how accounting for predicted outcomes might work in the business environment. The environment affects us all and any sort of change, contingency, or preparation has to be accounted for, so this work is designed to find out how it is being done, and things that could be done to improve business. The triple bottom line The age old practice of businesses being concerned strictly with...
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...The Emerald Research Register for this journal is available at www.emeraldinsight.com/researchregister The current issue and full text archive of this journal is available at www.emeraldinsight.com/0268-6902.htm The changing role of the auditors R. Jayalakshmy, A. Seetharaman and Tan Wei Khong Faculty of Management, Multimedia University, Cyber Jaya, Malaysia Abstract Purpose – To highlight the pressures that the auditors would face in the era of globalisation and the challenges they should be willing to accept in order to maintain trust and integrity. Design/methodology/approach – A wide range of articles and journals published in international journals as well as local journals has been reviewed. The areas covered include audit fraud, true and fair view interpretation, auditor independence and role of internal auditors. Further, ideas have also been obtained from critical write-ups in the business magazines on the fall of multinationals. Findings – A wide range of interpretation has been given by various groups of people on their understanding of the phrase “true and fair”. This has created great confusion as to the interpretation of the audit reports. This has been proven by the fall of many multinationals and the audit pioneers, Andersens. This is one of the causes of audit fraud and it is also seen that as the auditors face an enormous challenge as they enter the twenty-first century, they should be willing to change their attitudes towards their clients. Professionalism...
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