Financial Management Accounting Research Articles

A Review of the Classification of Enterprise Life Cycle

Due to the different life cycles of companies, there are significant differences in company size, growth, financing constraints, financing channels, growth, investment opportunities, competitive environment, and operational and financial risks. The company’s life cycle can be studied by micro-enterprises. Scholars in the fields of behavior, financial accounting, management accounting, and capital markets provide a dynamic perspective. Therefore, how to divide and measure the life cycle of a company is particularly important. This paper gives a detailed analysis of the division of the life cycle of domestic and foreign companies and their measurement methods. It has a certain guiding significance for interdisciplinary research in financial accounting, management accounting, and capital markets based on the enterprise life cycle theory.

Research on the Function of Accounting Supervision in the Network Enterprise Management Ruan

Accounting is an important work in the operation of enterprises, is a business hub. Efficient and concise accounting management system can largely make the development speed and economic efficiency of enterprises improved, in both plays a vital role in improving the management level of enterprises, optimize the enterprise innovation system. However, with the continuous improvement of economic development, a series of problems of accounting work have been exposed. This paper introduces the function of financial accounting and management accounting in enterprise management, and some problems and solutions in operation.

Research on the Function of Accounting Supervision in the Network Enterprise Management Ruan

Accounting is an important work in the operation of enterprises, is a business hub. Efficient and concise accounting management system can largely make the development speed and economic efficiency of enterprises improved, in both plays a vital role in improving the management level of enterprises, optimize the enterprise innovation system. However, with the continuous improvement of economic development, a series of problems of accounting work have been exposed. This paper introduces the function of financial accounting and management accounting in enterprise management, and some problems and solutions in operation.

PENGARUH PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY DAN PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP TINGKAT PROFITABILITAS (Studi Empiris Pada Perusahaan Sektor Pertambangan Yang Terdaftar Di BEI )

This study aims to see the integration of accounting concepts in expressing corporate social responsibility and implementing good corporate governance, and achieving profitability level. This research is explanatory research intended to explain the causal relationship between variables through hypothesis testing. This analysis is used to determine the magnitude of the influence of independent variables on the dependent variable. This research is an empirical and grounded study conducted based on existing theories which then developed into a model of research where the model in this study is designed to examine the influence of corporate social responsibility disclosure and the implementation of good corporate governance to the level of profitability. This study aims to find and obtain empirical research evidence to obtain answers to research problems on how much influence the disclosure of corporate social responsibility and the implementation of good corporate governance to the level of profitability. The benefits of this research are to contribute scientifically to the science of financial accounting and management accounting and to solve problems for managers in the execution of tasks related to the increase in profitability level. The output of this research is in the form of publications in international journals.

Análise da temática Contabilidade Gerencial na formação em Ciências Contábeis de IES mineiras à luz do Currículo Mundial e da Proposta Nacional do CFC/FB

This research aimed to identify and analyze the compliance level of management accounting contents in the subject descriptions of Accountancy courses at Higher Education Institutions (HEIs) in the state of Minas Gerais, in the light of the Global Curriculum (GC) developed by the UN / UNCATD / Isar and the National Proposal submitted by the Federal Accounting Council (CFC) / Brazilian Accounting Foundation (FBC). The selected sample consisted of 23 public and private higher education institutions from Minas Gerais that offer the Accountancy course and published the curricular structures on their institutional websites. Through the analysis of the content of curricula and plans of disciplines related to the management accounting area, it was found that, with respect to the National Proposal, there were few differences between the offer of subjects and contents analyzed between public and private institutions. There was some homogeneity in the presence of the topics covered by educational institutions, as all education institutions have more than half of the management accounting-related content. A different is noteworthy between public and private institutions in the supply of content indicated by the discipline Management Information Systems, which 47% of private HEIs do not offer, while only one of the public institutions does not offer the discipline. In relation to the GC, the HEIs have differences in common in the way they approach the content. The contents that are covered most at the HEIs are discussed in the subjects Financial Statement Analysis, Controllership and Management Accounting.

The New Public Financial Management (NPFM) and accrual accounting in Sri Lanka

Abstract Purpose The purpose of this paper is to analyse the reasons why Sri Lanka adopted International Public Sector Accounting Standards (IPSAS) recently. Many less developed countries (LDCs) have introduced IPSAS during the recent past. However, little research has been conducted to study the New Public Financial Management and accrual accounting and their impact on LDCs. Methodology/approach Using a qualitative approach, the methods of this paper consist of interviews, a documentary review and participatory observation in the Ministry of Finance and Planning (MOFP) and Auditor General’s Department of Sri Lanka, and present a critical interpretation supported by the perspective of globalisation. Findings The findings of the research indicate that the public sector reforms and the transition from cash accounting to accrual accounting in the public sector have been strongly affected by the global pressures imposed by international agencies such as International Public Sector Accounting Standards Board (IPSASB) and the World Bank (WB). Empirical evidence shows the dysfunctional impact of globalisation in the public sector accounting standards as there are major structural issues yet to resolve. There are increasing doubts over whether the change to accrual accounting is worth the costs and the additional risks involved. Research limitations The results of the interviews are based on the knowledge and past experiences of interviewees. What is generalisable is an understanding of the processes and mechanisms that relate to the way the public sector accounting functions. Originality/value This paper adds new literature on public sector accounting in LDCs, which recognises the nexus and interests of international agencies and practice of public sector accounting.

Organising the Accounting Profession: A Theoretical and Historical Examination of the Development of the Major Accountancy Bodies in the United Kingdom (UK)

The study seeks to examine the topic -- Organising the Accounting Profession: A Theoretical and Historical Examination of the Development of the Major Accountancy Bodies in The United Kingdom (UK). In advancing the ‘professionalising’ claims, the UK accountancy bodies emphasize that their members have command of practical and theoretical culture, engage in ethical conduct, serve the public interest and act in a socially responsible way. However, such claims are routinely problematised by scandals which highlight the highly partisan role of accounting and accountants and failures of accounting education. Rather than undertaking a radical review of accounting education, the professional bodies seek to rebuild confidence in accounting and their jurisdictions by (re)affirming that accounting education is or will be devoted to producing reflective accountants through educational processes focused on sound education, principles, ethics, professional skepticism, lifelong learning opportunities, distinguishing between private and public interest and serving the public interest. These promises presuppose that students on professional accounting courses are exposed to such values. To advance the debate, this paper examines a number of financial accounting, auditing and management accounting books and finds that beyond a technical and instrumental view of accounting, there is little discussion of theories, principles, ethics, public interest, globalization, scandals or social responsibility to produce socially reflective accountants.

Accounting for KVA Under IFRS 13

We explore the accounting view on KVA for derivatives, where KVA is defined as the lifetime cost of capital, i.e. the Capital Valuation Adjustment. Accounting uses ‘fair value’ in most circumstances. IFRS 13 (Fair Value Measurement) defines fair value and it explicitly replaces previous requirements in individual standards. This fair value is based on financial management and management accounting models and concepts. These concepts are embodied in economic decision making models that use discounting, relevant cash flows, and any incremental changes consequent upon the project or investment. These economic decision making models naturally include the cost of allocating scarce capital that cannot then be used elsewhere. In short, IFRS 13 specifically requires preparers of accounts to use economic models. In this case the project or investment is the derivative, and regulations (e.g. Basel III) set minimum capital requirements. Thus by IFRS 13 accounts should reflect the costs of allocated capital, i.e. KVA.

Descriptors of Modular Formation of Accounting and Analytical Cluster in Innovation Development of Agricultural Holdings

In the context of the division of accounting into financial accounting, taxation accounting, management accounting and statistical accounting a problem of improving their relationship arises. The accounting and analytical cluster plays the role of the correlating factor of the relationship between the subdivisions of the agricultural holding property. To improve its work a modular principle of its building based on information technology was introduced. Practical implementation of modular accounting and analytical cluster revealed its shortcomings. They were as follows: each type of account and each production unit used its own natural and cost parameters. The number and nature of these parameters were different. To eliminate the shortcomings in the information security of managers and specialists of the agricultural holding, we attempt to develop a methodology for establishing a rational number of descriptors (binding parameters) for each module. The proposed descriptors are designed on the basis of validity of the methodological approach to their calculations and legal support. The proposed method allowed to limit the asymmetric information in all kinds of records, to improve its quality and to bring a synergistic effect from the scale and structure of the use of the agricultural holdings property complex.

What Are the Top Variables Leading to Strategic Investment Decision Making Performance

 Abstract—We study the gap between theory and practise on the strategic investment decision (SID) due to its immense impact on finance and strategy by deriving a theoretical framework on successful SIDs from current SID making literature. The theoretical framework summarises the top variables leading to SID making performance. To determine if theory is justified by practise, we assess the usage and influence of financial and strategic management accounting techniques versus control pertaining to the influence of accounting practises on SIDs in the Singaporean context. We examine the actual practises of manufacturing companies in the unique Singaporean context and find out what is the highest influence on their strategic practises: accounting versus strategy through a detailed case study approach obtained from 10 Singaporean companies. From the empirical results, we derive a conceptual framework that denotes the top variables leading to SID performance.

Accounting Research in Family Firms: Theoretical and Empirical Challenges

Family firms play a significant role in the global economy. Consistently, over the last two decades academia has turned its attention to the family dimension as a determinant of business phenomena, and this interest has increased over time. While family business research has reached an age of ‘adolescence’ as a field of study, accounting research to date seems to have been rather slow to pick up on the distinctive characteristics of family firms, and their implications for accounting and reporting practices. In an attempt to accelerate and support research in the field, in this article we highlight theoretical and empirical challenges that accounting scholars need to consider when addressing issues related to accounting and reporting in family firms. These challenges include the selection and potential mixing of appropriate theoretical frameworks, and complications in defining operationally what family firms are. We also provide a ‘state of the art’ of studies in financial accounting, management accounting and auditing, identifying which issues in relation to family firms have been addressed in the research, and which theories, research methods and types of data have been used in these studies. We conclude by providing directions for future research that can advance our understanding of accounting and reporting in family firms.

Application Status and Prospect of Computer in Accounting

On the basis of the thought and target of adaptation on the socialist market economy reform and development, this paper discusses the problems about how to develop out domestic accounting computerization with the purpose of complying with the development trend of nowadays network times. ERP system reflects the advanced financial accounting, management accounting and cost management thought. It can meet the diversified information demands of the information users. The financial system in ERP is integrated, management and decision oriented. It realizes the transformation from the reflection on the financial information after the event to the real-time support on the financial management and decision making, and from the closed single financial management to the integrated comprehensive enterprise management. Therefore, ERP system will be the inexorable trend of our domestic accounting computerization development.

Course Grades or Faculty Intuition: Which is a Better Predictor of Student Success on Professional Accounting Exams?

The purpose of this research is to determine whether accounting faculty’s intuition is a better predictor of a student’s success on professional accounting exams than a student’s GPA. In addition to GPA and intuition, this research investigates the predictive ability of four other factors: 1) co-op experience; 2) case competition participation; 3) firm office size; and 4) professional exam preparation programs. A novel dataset is hand collected based on undergraduate students who graduated from Lakehead University and pursued the Chartered Accountant designation. A logistic model is estimated that correctly predicts 81.6% of all student success (and failure) cases. The results reveal that GPA is a better predictor than faculty intuition, although faculty intuition does have some predictive ability. Specifically, the GPA of accounting-related courses is shown to be better predictors of success than other non-accounting business courses. Additional analysis reveals that the GPA from courses in financial accounting, management accounting, auditing, and taxation are all individually predictive of student success. In addition, students who participate in case competitions performed better while co-op experience, firm office size, and preparation programs are shown to be unrelated to student success prediction. Overall, these results are significant to potential employers of professional accounting students and to professional accounting bodies who must determine which, if any, undergraduate course shold significance in terms of professional accounting programs. This information will not only help in establishing pre-requisite requirements for professional exams but also determine whether required competencies under each course are contributing to student success. This paper is especially timely in Canada as the entrance requirements to the new Chartered Professional Accountant (CPA) are being developed.

Perceptions Among Professional Accounting Students of Self, Job Attractiveness and Academic Reputation

Discussions around career pathways have gained momentum in the field of career development to assist young people in mapping out their career choices in order to achieve meaningful and productive futures. The purpose of the study was to empirically investigate third-year accounting students’ perceptions of the comparative worth and the utility of a career choice based on one of four accounting major subjects. The four compulsory subjects are offered on the professional degree to become a Chartered Accountant (CA) offered at the University of the Witwatersrand. The research design was descriptive and cross-sectional. Results were discussed in terms of existing theory, with both internal and external factors considered. Findings indicated that financial management accounting was the dominant career choice option, followed by taxation. The value of the study resides in the insights gained regarding the salience of various career perceptions among professional accounting students.

Using Information Technology as an E-Learning Tool to Develop Entrepreneurial Skills of Emerging Businesses in the Western Cape in South Africa

The objective of this paper was to demonstrate the use of information technology as an e-learning instrument to develop entrepreneurial skills of entrepreneurs assisted through RED DOOR[1], a government entrepreneurship support program, with a specific focus on financial management and management accounting skills. Historically, many emerging businesses that have received entrepreneurial support and training from RED DOOR have met with limited success. This study focussed on a longitudinal assessment of a pilot training program implemented by RED DOOR. This study included a sample of 40 entrepreneurs that obtained entrepreneurial training. The methodology involved four phases, namely, knowledge transference, skills application, business simulation and business evaluation. The results indicated that twelve months after the training most participants were successful.

The Factors Effecting the End-User Computing Satisfaction of Government Financial Management Accounting System (GFMAS)

The importance of computerised accounting system (CAS) is indisputable for private as well as public sector. One of the continuous efforts in the public sector can be seen through the introduction of Government Financial and Management Accounting System or GFMAS by Accountant General (AG) Department in year 2005. GFMAS is expected to enhance operational efficiency and effectiveness to enable the department to deliver value-added services. As far as researchers are concerned, no attempt has been made to examine End-User Computing Satisfaction (EUCS) towards GFMAS especially in AG Department. Thus, the purpose of this study is to determine the level of satisfaction among the end users of GFMAS at AG Department specifically in East Malaysia (Labuan and Sabah branches). Besides, this study also examines the effect of seven factors (content, accuracy, ease of use, format, timeliness, reliability of the system, speed of the system, etc) on the level of satisfaction among end users towards GFMAS. By distributing questionnaires to 140AG staffs that using GFMASand conducting in-depth interview with few directors and officers, empirical analyses have been drawn successfully. In general, end user satisfaction on GFMAS correlates significantly with content, accuracy, format, ease of use, timeliness, speed of the system and reliability of the system.

Different Perspectives on Business Performance and Impact on Performance System Design

Currently, increasing emphasis is placed on performance measurement and management. The paper is concerned with the connection between the performance of an enterprise in general and financial performance. This connection has been naturally sustainably changing over time. Question of performance measurement is observed by a variety of functional disciplines. The paper emphasizes the necessity to bring a diverse body of knowledge of performance measurement issues into a coherent whole. In subsequent part it deals with summarizing the most important developmental tendencies of financial performance measurement and management accounting and with analysing of the relation of performance management and management accounting.

Accounting System and Financial Performance Measurements

The paper concerns measuring and reporting of financial performance of an enterprise. Currently increasing emphasis is placed on performance measurement and management. Within performance measurement and management in general the role of financial performance is becoming increasingly important. The paper is concerned with measuring and reporting of financial performance of an enterprise primarily from manager's point of view. In its first part it deals primarily with the connection between the performance of an enterprise in general and financial performance. In subsequent part it is about the relation of performance management and management accounting. The next part of the paper is devoted to the dual concept of financial and management accounting and to causes and consequences of the duality. Then it summarizes the most important developmental tendencies of financial performance measurement and management accounting.

Transformation Of Government’s Computerised Accounting System (CAS): Case in Jabatan Akauntan Negara Malaysia (JANM)

This research is focused in the Computerised Accounting System (CAS) that conceptually applied in Jabatan Akauntan Negara Malaysia (JANM). It is important to view the level of transformation of Branch Accounting System (BAS) towards Government Financial Management Accounting System (GFMAS). This transformation is because of the problems that occurred and needs to be improving on the efficiency of processes in particular system so that the public sector or government will achieve the level of outstanding development and achievement soon. This information is gathered from the interview amongst all experienced staffs in JAMN at Labuan Branch towards the application of this system. The result from the interview is referred to seven (7) successful factors of the successfulness of application system as a measure to the content, accuracy of the report, format of the report, ease to use, time, speed of the operation and reliability of the system according to Doll and Torkzadeh’s model. Besides of JAMN, the Malaysian Administrative Modernization and Management Planning Unit (MAMPU) also very important and helps in gathering information which is more efficiency whenever the current system and established for each JAMN branches soon.

Project management and presentation of information in financial statements - company performance measurement or project performance measurement

Realization of projects is such form of operation which in the recent years – in the age of globalization of economy and growing competition – has become more and more significant, both in Poland and worldwide. The value and the number of projects realized are gradually growing and include not only the branches traditionally related to such form of operation (e.g. construction and IT industry) but in practice all fields of our life. A necessary element that determines the success of project realization is timely information which also needs to be reliable and useful. The source of such information is the accounting system composed of two subsystems: financial accounting (focused on the external recipient of the information) and management accounting (providing information to internal recipients). One of the basic determinants of creating information for external recipients (such as investors, banks, insurance companies, treasuryadministration organs etc.) is comparability. Keeping it influences the quality of information regarding project activity taken from financial reports created according to the selected regulations of accounting (e.g. IAS/IFRS, US GAAP and the PL GAAP). The aim of the article is to draw the attention to the problems related tothe presentation of the operational result in case of companies realizing projects contained in a financial report. The article is of discursive nature since the issues that it deals with usually depend on what given solution is selected bya unit in question. Moreover, some of the areas are subject to detailed regulations of the balance law (both domestically – the Act on Accounting and PL GAAP No. 3, and internationally – AS/IFRS). However, their applicationmay lead to ‘blurring’ a realistic and true picture of the capital and financialsituation of a company realizing long-term projects.