GLOBAL PRINCIPLES OF MANAGERIAL ACCOUNTING AND THEIR APPLICATIONS AT ENTERPRISES

Abstract

The article describes the list and essence of accounting principles and focuses on the principles of accounting, since not all generally accepted accounting principles are suitable for application in management accounting. The basic principles of management accounting are combined with the integration of different aspects, which are distinguished by different scientists. The Global Principles of Management, developed by international organizations and identifying best practices in accounting that help to make complex decisions that deliver value, are described in more detail. The article describes the components of the principles and ways of their application. Attention is paid to the principle “Communication generates influential information”, which means that management accounting begins and ends with communication. The main purpose of this principle is to make effective decisions about the strategy and its implementation at all levels. The “Information is relevant” principle directs management records to provide managers with relevant information when necessary, identifying past, current, and future information, including financial and non-financial data from internal and external sources. This includes social, environmental and economic data. The purpose of this principle is to provide the enterprise with information support in planning and developing strategy, tactics and their implementation. The principle of “Impact analysis”, management accounting links the strategy of the organization with its business model. This principle helps to work out different scenarios to understand their impact on value creation and conservation. The main purpose of this principle is to simulate different scenarios that demonstrate cause and effect relationships between activity factors and outcomes. The purpose of the principle of “Smart management builds trust” is formulated as the need to actively manage relationships and resources to protect the financial and non-financial assets of the company, its reputation and value. Attention is drawn to the core competencies that management accounting professionals must possess to help an organization create, implement, and refine their strategies. The competency model covers four areas: specialized and business skills, communication skills and leadership. The application of Global Principles in the fields of activity: cost transformation and management, external reporting, financial strategy, internal control, evaluation of investment efficiency, management and budgetary control, prices, discounts and product decisions, project management, regulatory compliance, management resources, risk management, strategic tax control, financial management, internal audit.