The changing role of an accountant

Question 1

Drivers of chnage

Answer 1

Technology - data availability needs have exploded to more detail exploration

Competitive forces - rate of change of competition has increased meaning that response has to be nimbler and faster

Management structures - Accountants are less isolated than they were previously e.g. business partner modern role includes
1. more involved in decision making
2. financial and non financial factors considered
3. more focus into the future

Question 2

Integrated reporting

Answer 2

Annual report produced by companies often include more information these days.

Non - financial performance
Risks facing the business

Providing data, suggesting measures for inclusion in annual statements can be carried out by performance manager.

Different types of capital.
1. Manufacturing capital - reporting the effective and efficient use if machines, buildings and significant tools.
2. Intellectual capital - reporting level of employee knowledge
3. Human capital - employee skills and motivations
4. social and relationship capital - reporting the condition of the relationships the business depends on.
5. Natural capital - reporting on renewal and non renewable resources

Exam angle -
1. should the area be reported on - is it relevant to performance
2. What data would be needed?
3. How could the capital be measured?