EVOLUTION OF MANAGEMENT ACCOUNTING

Evolution Of Management Accounting Discipline And Its Relationship With Other Functions In Organizations



Evolution Of Management Accounting Discipline And Its Relationship With Other Functions In Organizations

Accounting Theory

Accounting theorists acquiesce that no comprehensive theory of accounting has yet been developed. In the nonattendance of such a idea, the inquiry arises if adequate accounting values are conceived through accounting research. This item acknowledges that accounting values are not solely the outcome of learned study and that present accounting perform through its standard-setting method contributes far more to the development of accounting principles. Hence the role that accounting theory and research should play in evolving accounting values is a vital academic question. The consideration in the item focuses on the normative and descriptive (or the more up to date positivistic) approach to the development of accounting idea, the positivistic nature of mainstream accounting research, a likely decision-useful idea of accounting and the function of interpretative and critical research. All of this expansion is beneficial to accounting since they open up accounting to a diversity of research approaches that will collectively improve the rank of accounting research and possibly accounting theory. The function that these developments fulfil in conceiving befitting accounting values, although, is debatable (American, 2000, 53).

Discussion

Defined by the General Accounting Plan (CMP) as "a system of organizing financial information, accounting is a technique that allows one hand to capture, classify and record numerical information of an entity and submit financial statements reflect fairly the financial position and assets of the entity at a given date. Accounting bases its foundation on basic principles legal, fiscal, financial and social to justify the choices made in the practice of this technique that is accounting. These principles derive their sources of accounting law, the Code of Commerce and many other doctrinal or jurisprudential sources and are consistent with all the organizational aspects of accounting such as bookkeeping requirements, testing the reliability of accounting data, dealing with information systems ... to name but a few! Let us recall that, according to accounting principles, "the annual accounts must be regular and sincere, and present fairly the assets, financial condition and results of the company." Thus the text of the Commercial Code is to be "the pillar of accounting" because it is on its base that must be analyzed all the legal, economic, financial and accounting from the company. Accounting law stipulates this, strict evaluation items with regard to the assets and liabilities which reflects "the true and fair view of the company," rules relating to financial transactions of the company ("leasing" or "leasing", assignment of trade receivables, repo ..) embodying the "true and fair financial position of the company" and finally, rules for determining the outcome of the company (research and development expenses, personnel expenses, long-term contracts ...) giving an "accurate picture of the result of the company." This result, be it the "book income" or "bottom line" is a means of financing the company's business. It is also worth noting that accounting is ...