Argues that there are practical issues, as well as legal issues, that determine the differences between financial and management accounts.
Written in 2002; 1,150 words; 3 sources; $ 44.95
Paper Summary:
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.
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