IFAC's Conception of the Evolution of Management Accounting: A Research Note

Abdel-Kader, Magdy G.; Luther, Robert

doi:10.1016/s1474-7871(06)15010-8

Cited by 39 publications

(37 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…A noticeable systematic attempt to understand the evolution of management accounting began in 1989, when the International Federation of Accountants (IFAC) issued a statement on scope, purposes, and concepts of management accounting. It was revised in 1998 and released as Management Accounting Concepts -the first publication in the series of International Management Accounting Practice Statements, the framework which has an authority by virtue of the massive constituency that IFAC represents (Abdel-Kader & Luther, 2006). Referring to the leading edge practice internationally, IFAC defines the four stages of evolution of management accounting: The critical differences between stages are the advancements in the financial function with a visible shift from a technical role of the information provider to the management support in achieving effectiveness and efficiency (resource planning, waste reduction) and further to the support of the value creation process.…”

Section: The Essence Of Management Accounting: Best-practice Approachmentioning

confidence: 99%

Management Accounting Maturity Levels Continuum Model: a Conceptual Framework

Lebedev¹

2019

Eur. j. econ. bus. stud.

View full text Add to dashboard Cite

Until now, in the financial domain, there were only few attempts made to develop maturity models – a useful tool to identify strengths and weaknesses of certain domains of an organization. The aim of this paper is to present a maturity model for management accounting. The method used to develop the model is an interpretive approach, in which an exploratory sequential mixed method research design was applied to broadly explore and understand data on management accounting systems in various settings and in its historical perspective. This study extends my previous research on development of management accounting and financial leadership (Lebedev, 2014, 2015, 2016, 2018, 2019b, 2019a). The framework traces 10 prototype roles of management accounting along their continuum of maturity (from “non-existent” to “strategic leadership”). Each maturity level reflects the extent to which management accounting creates value for its users based on the support provided for “conversations” among stakeholders, the deepness of leadership “embodied” into the management accounting function, and the effectiveness of management accounting principles and management accounting practices (MAPs) employed. This study contributes to the theory of management accounting by offering a framework for understanding of the evolution of financial function and management accounting. In practical terms, the results of the research could be applied to support decisions in transformation of financial function along its maturity continuum (both conducted internally by managers and/or with external support of consultants and advisors), supporting the process of reconciliation of current practices of a company being transformed to a proposed transformational strategy and chosen direction of implementation.

show abstract

Section: The Essence Of Management Accounting: Best-practice Approachmentioning

confidence: 99%

Management Accounting Maturity Levels Continuum Model: a Conceptual Framework

Lebedev¹

2019

Eur. j. econ. bus. stud.

View full text Add to dashboard Cite

show abstract

“…Numerous advanced cost and management accounting techniques, such as Target Costing (TC), have been promoted by many organizations worldwide in response to the competitive challenges and in pursuing their overall strategic goals. However, as Kaplan's (1984) review of The Evolution of Management Accounting and Johnson and Kaplan's (1987) book of Relevance Lost criticized the management accounting practices during the 1980s, several management accounting innovations have been developed across a range of industries and implemented internationally (Abdel- Kader & Luther, 2006). In addition, Johnson and Kaplan (1987) argued that management accounting had not changed since the early twentieth century and had lost its relevance in providing information for decision making.…”

Section: Introductionmentioning

confidence: 99%

Target Costing Evolution: A Review of the Literature from IFAC’s (1998) Perspective Model

Sharaf-Addin

Omar²,

Sulaiman³

2014

ASS

View full text Add to dashboard Cite

During the last two decades, with increasing competition in highly changing business environment, literature has cautioned against the efficiency and capability of traditional management accounting techniques in providing sufficient information needed for decision making. In coping with continuing changes in business environment and increasing pressure of competition, cost and management accounting techniques have been changed and new techniques have been developed, especially in the last two decades. This is to enable organizations to stay competitive by producing better quality products at lower costs. As Target Costing (TC) has been innovatively adopted to achieve this objective by Japanese companies in the 1960s, this paper attempts to show the historical development of TC. Premised on the review of forty (42) refereed journal articles published in various accounting journals during the periods of 1984 to 2013, this paper shows how, over times, the TC practices have undergone a three-phase evolution from cost reduction and control to cost and profit management and to quality and functionality improvement. Specifically, the paper examines the evolutionary facet of TC by using the 1998 IFAC-based management accounting evolution framework.

show abstract

“…The connection between the management accounting and strategy becomes more and more obvious in the specialized literature (Dubrulle, 2002;Hohmann, 2004;Abdel-Kader and Luther, 2004;Bouquin, 2006). This link between the two is seen as a possible key to solve the problems with which the classic, analytical accountancy deals with.…”

Section: Introductionmentioning

confidence: 99%

“…Information itself becomes a resource, asking for bookkeeping and for the production of value. Moreover, the management accounting becomes a very important part of the managerial process (Abdel-Kader and Luther, 2004), evolving from the direction almost exclusively financial (which was based on the financial measures that reflect the result of the past decisions) towards strategic approaches (Ittner and Larcker, 2001). A strategical approach take into consideration non-financial performance measures which have as aim the appliance of specific measure that can ensure the firm success, such as: quality, clients' satisfaction, reaction time, technological advantage, leader position on the market.…”

Section: Introductionmentioning

confidence: 99%

“…Some authors (Waal, 2007;Abdel-Kader and Luther, 2004) claim that the new managerial techniques and the complexity rise were the fundamental factors of the evolution of management accounting, showing that these new techniques influenced the whole process of the management accounting (planning, control, making decisions and communication) and changed the centre of gravity. Thus, from a simple role of finding out the costs and financial control, the management accounting directs itself to producing value by improving the way in which resources are used.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Implementation of strategic principles in cost management: Control of cost variations through statistical studies

Pirvu¹,

Vasilescu²,

Mehedințu³

et al. 2012

Afr. J. Bus. Manage.

View full text Add to dashboard Cite

The knowledge about costs and their evolution represent an essential element in decision process. The priority given to the cost analysis in the decision process can be explained through the fact that often the main factor is the financial implication of the selected decision made by the manager. The management of a company can find in the cost information an important instrument for adjustment, orientation and optimization of the operational and future activity because the cost appears in all its activities. The paper presents some aspects regarding the costs and their role in the management of enterprise because the information concerning costs play a vital part in formulating more performing strategies to get lasting competitive advantage. We intend to highlight the importance of the strategic planning and the role of costs management in a business medium, because the costs structure can be really an advantage in establishing the way in which the performance can be obtained "a durable competitive advantage" (M. Porter, 2001). The recent evolution of the management accounting is essentially characterized by the passing from an information system to a whole bunch of instruments guided towards outward part, strategy and future. Under these conditions, our paper tries to point out the necessity of inclusion the principles of strategy into the management of costs. Therefore, we consider a necessity of a managerial, contemporary system. Such an approach lays down the premises of a new philosophy of costs and opens new perspectives of approaching the management accounting. As result of the recent theories regarding the costs and their determinants factors, theories that contradicted the dominated idea in the classical analytic theory accordingly whose production volume determine the costs, at present, the cost management should consider the variety and complexity of all factors. Considering the randomly character of these factors' influence, for getting some rigorous results that can be the basis for adopting some efficient decisions, in the paper we propose statistical studies based on the influence of the determinant factors, studies based on the using of notions from probability theory and mathematical statistics. The main purpose of these studies is represented by the control of cost evolution, in the condition of incertitude and risk for the companies' activity.

show abstract

IFAC's Conception of the Evolution of Management Accounting: A Research Note

Cited by 39 publications

References 13 publications

Management Accounting Maturity Levels Continuum Model: a Conceptual Framework

Management Accounting Maturity Levels Continuum Model: a Conceptual Framework

Target Costing Evolution: A Review of the Literature from IFAC’s (1998) Perspective Model

Implementation of strategic principles in cost management: Control of cost variations through statistical studies

Contact Info

Product

Resources

About