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    Overview of Management Accounting: MA - Lê Hoàng Oanh

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    Khánh Đoan Ngô
    1) The document discusses the origin and role of managerial accounting, comparing it to financial accounting. 2) Managerial accounting provides information to managers for planning, directing, motivating and controlling operations. It focuses on relevance, flexibility and timeliness. 3) Financial accounting provides information to external parties and focuses on objectivity, verifiability and precision. It must follow GAAP and accounting standards.

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    Overview of Management Accounting: MA - Lê Hoàng Oanh

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    Khánh Đoan Ngô
    26 views9 pages
    1) The document discusses the origin and role of managerial accounting, comparing it to financial accounting. 2) Managerial accounting provides information to managers for planning, directing, motivating and controlling operations. It focuses on relevance, flexibility and timeliness. 3) Financial accounting provides information to external parties and focuses on objectivity, verifiability and precision. It must follow GAAP and accounting standards.

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    1) The document discusses the origin and role of managerial accounting, comparing it to financial accounting. 2) Managerial accounting provides information to managers for planning, directing, motivating and controlling operations. It focuses on relevance, flexibility and timeliness. 3) Financial accounting provides information to external parties and focuses on objectivity, verifiability and precision. It must follow GAAP and accounting standards.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    26 views9 pages

    Overview of Management Accounting: MA - Lê Hoàng Oanh

    Uploaded by

    Khánh Đoan Ngô
    1) The document discusses the origin and role of managerial accounting, comparing it to financial accounting. 2) Managerial accounting provides information to managers for planning, directing, motivating and controlling operations. It focuses on relevance, flexibility and timeliness. 3) Financial accounting provides information to external parties and focuses on objectivity, verifiability and precision. It must follow GAAP and accounting standards.

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    © All Rights Reserved
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    of 9

    Chapter 1

    OVERVIEW OF MANAGEMENT
    ACCOUNTING

    MA.Lê Hoàng Oanh

    LEARNING OBJECTIVES
    Knowing origin of managerial accounting
    Explaning why managers need managerial accounting
    information
    Understanding the work of management and the role of
    managerial accounting
    Identify the differences between financial accounting and
    management accounting
    Be aware of professional ethics of management accountants

    1
    ORIGIN OF MANAGEMENT
    ACCOUNTING

    ORIGIN OF MANAGERIAL ACCOUNTING

    …… Period 1 1956 Period 2 1980


    Goals
    Goals
    Simplify information, provide
    information for cost controlling Provide information to
    planning and controlling
    and product pricing
    à Focus on definition
    of product cost calculating How?
    process & financial control Analyse for decision making,
    How? responsibility accounting
    Cost acc, collecting & Restrictions
    Processing economic & financial Based on three theoretical
    information - financial, assumptions
    ROI (1920, Donalson B)

    Technical activities Indirect management activities4

    2
    ORIGIN OF MANAGERIAL ACCOUNTING

    1980 P3 1995 P4 today


    Goals Goals
    - Provide inf to the forecast, Create value for customers,
    the operating organization, shareholders, the changes in
    control and decision making internal business operational
    - Focus on reducing process
    consumption of resources
    How How
    Process analyses Evaluation of
    Cost management factors creating value

    Component of management Component of management5


    process process

    ROLE OF MANAGERIAL ACCOUNTING

    3
    MANAGERS’ FUNCTIONS

    Formulating long and


    short-term plans
    (Planning)

    Comparing actual Implementing


    to planned plans
    Decision making
    performance (Directing &
    (Controlling) Motivating)

    Mesuring performance
    (Controlling)

    ROLE OF MA INFORMATION IN THE MANAGEMENT

    Decision information
    Managers
    making

    inf Financial
    Business
    accounting
    activities

    Other departments
    Managerial
    & parties outside
    information accounting
    the organization

    4
    ROLE OF MANAGERIAL ACCOUNTING
    MA is the process of
    identifying, measuring, Providing information about the
    analyzing, interpreting & org’s and competitors’ financial
    communicating information status, operating status; market
    for the pursuit of an conditions, customer tastes and
    organization's goals. technical initiatives
    Providing Providing inf to
    inf about Planning build & develop
    actual & a logical human
    planned resource structure
    Cont. Dir & and daily inf.
    performance Decision
    as well as making Moti Inf has to feedback
    their on the effectiveness
    differences and quality of work
    Controlling has been done

    Providing inf related 9


    to business strategies

    COMPARISION OF FINANCIAL AND


    MANAGERIAL ACCOUNTING

    10

    5
    COMPARISION OF FINANCIAL AND MANAGERIAL
    ACCOUNTING
    MANAGERIAL ACC FINANCIAL ACC
    Reports to those inside the Reports to those
    Objects using org for planning, directing & outside the org
    information motivating & controlling
    performance evaluation
    Emphasis is on summaries Emphasis is on
    of financial consequences of decisions affecting
    past activities the future
    Measured in physical unit, Measured in unit of
    unit of time and unit of currency
    Characteristics currency
    of information
    Relevance and flexibility of Objectivity and
    data are emphasied verifiability of data
    are emphasied
    Timeliness of inf is required Precision of inf is 11
    required

    SO SAÙNH KTQT & KTTC


    MANAGERIAL ACC FINANCIAL ACC
    Information Need not follow GAAP Must follow GAAP and
    handling and accounting accounting standards
    principles standards
    Scope to - Each part of product, Entire enterprise
    provide inf each product, each
    group of product, each
    business area,…
    - Entire enterprise
    Reports Not mandatory Mandatory for
    external reports
    Reporting Often Periodically
    period
    12

    6
    PROFESSIONAL ETHICS OF
    MANAGERIAL ACCOUNTANTS

    13

    PROFESSIONAL ETHICS OF MANAGERIAL ACCOUNTANTS

    Competence Confidentiality

    IMA’S STANDARDS OF ETHICAL CONDUCT

    Objective Integrity

    14

    7
    PROFESSIONAL ETHICS OF MANAGERIAL ACCOUNTANTS

    Competence

    Maintain an appropriate level of proffesional


    competence by on going development of their
    Knowledge and skills

    Perfom their professional duties in according


    with relevant laws, regulations,
    and technical standards

    Prepare complete and clear reports and


    Recommandations after appropriate anlyses
    of relevant and reliable inf

    15

    PROFESSIONAL ETHICS OF MANAGERIAL ACCOUNTANTS

    Refrain from disclosing


    Refrain from using
    confidential information
    confidential inf for
    acquired in the course of
    unethical of illegal
    their work unless legally
    benefit either
    obligated to do so personally or 3rd
    parties

    Confidentiality

    Inform subordinates regarding using the


    confidential information appropriately and monitor
    their activities to assure the maintenance of that
    confidentiality 16

    8
    PROFESSIONAL ETHICS OF MANAGERIAL ACCOUNTANTS

    Avoid actual conflicts Refrain from engaging in any


    of interest and activity that would prejudice
    advise all their ability to carry out their
    appropriate parties duties ethically
    of any potential
    conflict
    Integrity
    Refrain from
    engaging or
    supporting any
    Refuse any gift, favor, or activity that
    hospitality that would influence would discredit
    or would appear to influence their the profession
    actions 17

    PROFESSIONAL ETHICS OF MANAGERIAL ACCOUNTANTS

    Communicate
    inf fairly &
    objectively Objectivity

    Disclose fully all relevant inf that could reasonably


    be expected to influence an intended user understanding
    of the reports comments and recommendations presented
    18

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