Abstract This paper analyzes the factors necessary for a managerial accountant to succeed in an independent practice and within a larger organization. The author emphasizes that managerial accountants must set the standard for communication within their practices, particularly in regard to strategic issues and relationships between other accountants in their practice. Additionally, the paper shows that managerial accountants must be linked organizationally to the accounting department that they support, which includes training end users to become more proficient in interpreting financial documents. The author concludes that more research is needed in the area of managerial accounting communication so that managers responsible for making training decisions and communicating on a continual basis will have enough tools with which to base their decisions.
Outline:
Introduction to Communication within the Accounting Profession
Leadership over the Managerial Accountant Leadership by the Managerial Accountant Decision-Making by the Managerial Accountant Staff Motivation through Communication by the Managerial Accountant Communication and Compensation
Outside Training
Management Priorities by the Managerial Accountant Communicating Expectations of Staff
Marketing
The Communication of Ethical Standards
Conclusion
From the Paper "As a result, managerial accountants must be flexible to change and adaptation, and those with a broad spectrum of behavioral understanding in addition to financial skills are more properly suited for their positions. This includes a communication medium that reaches the intended audience efficiently and effectively. This paper will analyze the correlation between managerial accountants and their means of communication necessary for their practice to thrive. It will also provide recommendations throughout that managerial accountants can incorporate into their practice in order to bring the profession as a whole to a new level of success."
This paper defines the term accounting ratios and details why they are a significant tool applied by accountants when presenting accounting statements.
Abstract The writer of this paper examines the importance of accounting ratios in business. Accounting ratios illustrate the present as well as the prospective, so that shareholders can visualize how much gain a business attained, the total worth of the assets and the level of cash reserves available. This well-researched paper discusses the advantages and disadvantages of accounting ratios. One significant drawback of the accounting ratio is that it depends too heavily on the conventional costs that lead to twists in quantifying performance. Ratios are required to be represented meticulously. They can entail the evidences to the performance of the company or financial environment. However, they are unable to demonstrate whether the performance is good or bad out their own. The writer details the manner in which the final figures of accounting ratios are achieved, while discussing the fact that these ratios necessitate some quantitative information for an informed analysis to be made. The writer contends and clearly explains why accounting ratios are completely dependent on the supplied data which may or may not be accurate.
Table of Contents:
Introduction
Discussion
Conclusion
References
From the Paper "A markedly low accounts ratio may give rise to angry suppliers and remarkably high inventory turnover ratios may lead to supply shortages and angry customers. The one that is correct for one company may not be considered appropriate for another one. Besides, no two companies are found to be similar irrespective of the fact that they are competitors in the same industry or market. Application of ratios to evaluate one company with another provides misleading information. Businesses may be within the same industry but have distinguished financial and business risk. Ratios are completely dependent on the data that may or may not be accurate."
Abstract This paper examines the future of accounting by investigating current and future trends. This includes considering the changes in the work environment for accounting employees, trends in accounting roles and future opportunities for accountants, and future skills of accountants that will be in high demand. Considering these three areas shows where business accounting is heading and how best accounting professionals can prepare for these changes.
From the Paper "The business world is in a period of change, with accounting a major part of that business world. As one report says, "Accounting is the language of business. It is and always will be the analysis of how money is used by businesses, nonprofit organizations, governments and individuals" (Insight). As the business world changes, accounting must change to continue to meets the needs of businesses. This is one of the areas that will greatly influence the future of management accounting. To understand this issue further, the current and future trends in accounting will be investigated. This includes considering the changes in the work environment for accounting employees, trends in accounting roles and future opportunities for accountants, and future skills of accountants that will be in high demand. Considering these three areas will show where business accounting is headed and how best accounting professionals can prepare for these changes."
Abstract In this article the writer discusses the two unique sub-functions within the accounting field: managerial accounting and financial accounting. The specific functions, responsibilities and duties of each function are discussed in relation to the broader field of accounting. Further consideration is given to the income statement and balance sheet and how they are related. Finally, the use of accounting principles and techniques in managerial decision-making is also discussed. The document concludes with a brief overview of accounting.
From the Paper "Accounting within the business sphere is largely divided into two separate divisions: financial and managerial accountants. The presence of financial accountants and management accountants in most large corporations today is a testament to the complexity of the global economy, the legal and governance rules an entity must operate under, and the sheer amount of information the profession must deal with on a daily basis. The importance of accounting as a basic function of business activity cannot be overstated."
Abstract This analysis identifies several expected changes in the field of accounting. These include that the reporting of financial information will become more strictly regulated; that the reporting of financial information will involve international regulations and standards; that accounting departments will have an international aspect to their operations; that information technology will impact on the role of the accounting department; that the accounting department will provide more diverse information; and that the skills and functions required of accountants will increase.
From the Paper "Accounting has always been related to measuring the activities of the business and reporting those activities in suitable ways. Financial statements are created not only to tell the business how it is functioning, but also to pass that information on to shareholders and other interested third parties. This is the task of disclosing financial information and it is a crucial one. One source notes that the primary goal of financial accounting is to provide information to external users of accounting information. Most major organizations are supported by shareholders."
Abstract Perhaps one of the most prominent discussions involving accounting has to do with the differences between financial and management accounts. Some regard these differences to be a question of legality. Companies are required by law to submit financial statements based on certain requirements. On the other hand, management accounting can be structured to suit the needs of the company. However, the fact that firms can structure their management accounting statements according to their needs might lead one to suggest that major differences between these two systems relate to practicality. With this in mind, it is hypothesised that while legal issues are important for determining the differences between financial and management accounting they are not the only considerations, one must also consider the extent to which practical considerations contribute to the development of these differences.
Abstract This paper discusses the two unique sub-functions within the accounting field: managerial accounting and financial accounting. The specific functions, responsibilities and duties of each function are discussed. Further consideration is given to the ethical implications involved with each accounting division. Enron is mentioned as a prime example of how ethical considerations can not only undermine the financial solvency of a company but, ultimately, can cause its demise.
From the Paper "The presence of financial accountants and management accountants in most large corporations today is a testament to the complexity of the global economy, the legal and governance rules an entity must operate under, and the sheer amount of information the profession must deal with on a daily basis. Though there are many functions that overlap within these two divisions of the same profession, each classification serves a uniquely strategic function. In general, financial accounting is responsible for the historical financial records and data of a company and is largely responsible for ensuring legal and regulatory compliance. Managerial accounting is responsible for providing interpretive reports of financial accounts which managers and executives use to make operational decisions and devise corporate strategy. "
Abstract This paper is a personal exposition of the author's career ambition to be a certified public accountant. The author describes the growth of the accounting industry and the area in which he hopes to specialize. Also examined are the author's perceived weaknesses in his skill set for being an accountant and how he feel these deficiencies can be overcome. He also states his strengths and how these will be beneficial in his career. The author concludes that by overcoming his weaknesses and adding to his strengths, it is possible to gain all of the tools for successful public accounting.
From the Paper "There are many different skills necessary to become a well rounded and successful public accountant. These skills include technical knowledge, attention to detail, and interpersonal communication. I have attempted to master all three of these skills through my daily life by consistently practicing and focusing on the importance of these three skills. By overcoming my weaknesses and adding to my strengths, I fully believe that I will soon gain all of the tools for successful public accounting."
Abstract This paper names and describes the many bodies that influence Generally Accepted Accounting Principles (GAAP) and Generally Accepted Accounting Standards (GAAS) in the United States. Included in this paper are regulatory boards such as the the Financial Accounting Standards Board (FASB), the Securities Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA) and the Public Company Accounting Oversight Board (PCAOB). The author describes the role of each of these regulatory bodies as well as defines their functions and influence on each other.
From the Paper "The SEC is ultimately responsible for the enforcement of securities law. As a result, they are the main body through which investigations into accounting fraud are conducted. One of the tools they use are comment letters, which are sent to companies suspected of impropriety requesting comment from the company. The comment letters can precede the initiation of legal proceedings."
Abstract The author introduces the topic by discussing the modern day needs of society to have accountants and how their importance is often overlooked. He then recounts the earliest known form of accounting and how it has developed over the years, stating many examples of where it is necessary to have good accounting skills and how these skills were developed. The paper concludes with what the future can bring for the accounting world.
From the Paper "Methods of accountancy were somewhat modernized during the Renaissance in Italy, where Arabic numerals had been introduced long before for financial purposes; Luca Pacioli's Summa de Arithmetica, Geometria, Proportioni et Proportionalita (1494)
is viewed as a crucial work in determining the course of Renaissance, and eventually modern, accounting. While Benedetto Cotrugli had invented the double-entry system of accounting before the publication of the Summa, Pacioli's methods greatly expanded on these ideas, containing 36 chapters on bookkeeping and earning the rare distinction of publication. "
Abstract This paper discusses the role of accounting and auditing in an organization, including aggressive accounting techniques. The author describes bias auditing. The paper relates the problems at Enron with aggressive accounting.
From the Paper "Accounting is sometimes called the language of business. Accounting provides managers with the tools they need to plan effective and focus attention on deviations from that plan direct day-to-day operations and arrive at the best solution to the operating problems faced by the organization. However, as the language of business accounting is also used by those outside the organization to make decisions that directly affect the company. This research considers two areas that can affect the reliability of accounting data-aggressive accounting ..."
Abstract This paper focuses on some basic accounting priniciples. It also discusses the relationship of the Security and Exchange Commission, the Financial Accounting Standards Board and the Public Company Accounting Oversight Board.
Abstract This paper discusses the Enron case and what it says about how certain accounting standards were violated. The paper notes how the case involved unethical accounting practices which inflated earnings and spent other people's money, because while the accounting profession is governed by a set of rules to assure ethical conduct, many of these rules were ignored or broken outright by Enron and its accountants.
From the Paper "The Enron scandal involved a company that inflated its earnings and so fooled investors, but the scandal also saw executives making a profit while the pensions of employees were dissipated until they were worthless. Examples of unethical behavior in this scandal are many. The issue was made all the more important because of other, similar lapses around the same time as several large companies went bankrupt and left investors stranded. At the heart of these scandals stood unethical accounting practices which inflated earnings and spent other people's money. The accounting profession is governed by a set of rules to assure ethical conduct. Many of these rules were ignored or broken outright by Enron and its accountants. The Enron scandal broke in 2001 when the company made a routine announcement about of $0.43 recurring third-quarter earnings per share."
Abstract The paper reviews the area of forensic accounting, a branch of the accounting practice which requires highly specialized skills as well as personal integrity and an unflagging work ethic. Among other things, the paper defines the term forensic accounting, and examines some of the methods or investigative tools employed by forensic accountants as they seek answers for suspected financial and book keeping irregularities.
From the Paper "The following paper will discuss a number of items. To begin with, it will outline (albeit in fairly general terms) what forensic accounting is and what it entails. Specifically, the next several pages will outline some of the questions and general investigative techniques pursued by forensic accountants exploring the veracity of personal or corporate financial records. Beyond that, the paper will also explore the skills and training that one should expect to find in a competent forensic accountant and will take some time to interview a family member who also happens to be an accountant to get their perspective on this demanding profession. Finally, some time will be devoted to outlining the general duties that accrue to any forensic accountant charged with uncovering truth, revealing falsehood and righting wrongs."
Abstract This paper looks at the two different accounting systems for mergers and acquisitions, and evaluates their effectiveness. It uses the merger of Idol Steel and Crown Welding to demonstrate their point. First the details of the merger are first examined using the pooling of interests accounting system, and then, by the purchase accounting system. After the two cases are presented, the author presents a direct comparison of the numbers and the methods used to do the calculations, to show the strengths and weaknesses of these two methods. Through this comparison, the author substantiates the FASB' s elimination of the pooling method in order to improve financial reporting.
From the Paper "Accounting for a business combination using the pooling method is conceptually straightforward. Upon completion of the business combination, the balance sheet of the combined entity reflects the sum of the book values of the assets, liabilities and owners's equity accounts of the combining entities immediately before the combination takes place (Walter, pg 29). The pooling method treats the entities as if they had always been together and thus the combination as "non-event" (Baker, Lembke, and King, 2002, pg 20). Unlike the purchase method when utilizing the pooling-of-interests method it is not necessary to indicate which entity is the acquirer and which is the acquired (Journal of Accountancy, July 1999). However, in order to use the pooling method there are twelve criteria that must be met. If one of the criteria is not met the use of the purchase method is required but if all twelve criteria are met, the pooling method is required (Baker, Lembke, and King, pg 27)."
