Management accountant role Flashcards
What was expected of the management accountant historically?
The role was limited to implementation stage, e.g. responsible for operational budgeting and control
Focus is on internal factors and financial information
Focus is on the past
What is expected of the management accountant today?
Strategic role providing information on financial aspects of strategic planning e.g. competitors costs
Uses internal and external information
Monitors performance in financial and non-financial terms
Focus is on the future
Why has the role of the management accountant changed?
As a result of environmental pressures
What did Burns and Scapens find about the changing role of the management accountant?
The role has changed from financial control to business support
More time is spent analyzing information than preparing reports
Sometimes called a “hybrid” accountant - since has knowledge of both accounting and operational knowledge
Don’t necessarily work in an accounting department but may be fully integrated into other departments
What is “the triple bottom line”?
Focuses on Economic, Environmental and Social areas of concern
Economic - financial performance
To meet shareholders needs
Environmental - reduce waste, increase recycling
To meet stakeholders needs
Social performance - giving staff a day off to volunteer for a charitable cause
What is the purpose of Integrated Reporting?
Balance between qualitative and quantitative data
Financial and non-financial measures
Looks at data for past and future, forward looking will require more forecasted information
Provides an analysis of opportunities and risks that could impact in the future
Considers how resources should be best allocated
