Abstract
The article describes the process of formation of an information base for risk assessment in the management accounting system of an enterprise. Information provided by the management accounting system at the present stage of development of market relations is becoming increasingly important for effective management and rational decision-making. Development of market relations in Russia and emergence of a large number of private (commercial) domestic and foreign entities have set new accounting tasks. One of them is to provide information to managers for managerial decision-making, and in this context, the need to create a system of internal information—the management accounting—have come to the fore. Traditionally, a management accounting system is understood as an organization’s system for collecting, recording, summarizing, and reporting on activities of the organization and its business units for planning, controlling, and managing these activities. The process of gathering information about the activities of the organization includes identifying, classifying, evaluating, and measuring business transactions and other economically significant events with a view to their subsequent reflection in the system of management accounting. In this regard, management accounting can be seen as the basis of the information system of an enterprise. DOI: 10.5901/mjss.2015.v6n5s4p348
Highlights
In Russia, the definition of management accounting has not yet received more or less clear and unambiguous interpretation in the economic literature
The leading role in providing information to assess the risks in a management accounting system belongs to accounting and reporting, as accounting materials reflect facts and phenomena of economic activity of the enterprise and its results in the most detailed and timely manner
The latter necessitates the use of operational reporting and the results of the inprocess control, which assists in timely receipt of necessary information and creates conditions to improve the efficiency of analytical work (Kerimov, Selivanov, & Minin, 2010)
Summary
In Russia, the definition of management accounting has not yet received more or less clear and unambiguous interpretation in the economic literature. Professional work requires not replacing, but complementing them with each other
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have