For a few months ago, the accounting profession through events and major changes, which mostly focus on performance and financial accounting issues (such as accounting rules are complex financial, ethical aspects of the profession and so on). Meanwhile, in a journal that we took argues that the crisis in management accounting as big as the crisis in financial accounting. It can be concluded in relation to the crisis in management accounting are:
In the traditional management accounting focuses on providing only to internal users such as factories, division, or internal corporate environment and do not follow the company's economic expansion, particularly in the external part of the business consists of inventory, joint ventures, special purpose companies and others. Along with the global demands more attention focused on the ability of management accounting to measure and evaluate internal and external fields in order to optimize the company's decision to be taken by external parties. The parties are:
Internal party is the party that is in the organizational structure. Management is the party most in need of proper accounting statements and inaccurate to make good decisions and correct. Examples like the manager who saw the company's financial position to decide whether to buy the building for a new branch office or not.
b. Shareholders / owners of the company
The owner of the company that has part of the company's financial information companies need to be able to know the extent to which progress or setbacks experienced by the company. Shareholders will benefit from the dividends that will be even greater if the company a fortune.
The amount of tax to be paid to the company or government organization based on the bulk of the information on the company's financial statements.
If the company is driven and require fresh funds may be borrowed company money to creditors such as borrowing money in the bank, owed goods on supplyer / supplier. The lender will provide funds if the company has good financial condition and will not have a great potential for loss.
Actually there are many other parties from outside the company that the company might be using the reporting / accounting information of an organization such as employees, unions, auditors of public accountants, police, students, journalists, and many others.
To be continouse,,,,
