Management Accounting Essay Example | Topics and Well Written Essays - 3000 words

Management Accounting - Essay ExampleMany psyche country studies take up been done on the national management story practices all over the world (Broomwitch and Wang, 1991 Amat et al, 1994 etc). However, the investor confidence has been deteriorating internationally in the accounting process because of the widespread occurrences of creative accounting and scandal. These two common events have created in force(p) concerns among the investors globally. This has changed the image of management accounting as an objective discipline and showed the political nature of accounting. Many individual country case studies have been done to evaluate the existing management accounting practices globally (Broomwitch and Wang, 1991 Amat et al, 1994 Adlegan, 2000). habituated this background, this essay critically evaluates the subjectiveness of management accounting and the various images and practice that have shaped the subjectivity debate. The organization of the essay is given below. Sectio n 2 discusses the debate regarding convergence to IFRS and true and fair honour concept. Section 3 discusses the creative accounting in detail. Section 4 concludes the essay. 2. ... It is argued that the convergence of national accounting standards and IFRS has advantages like internationally comparable monetary information with high quality. Moreover, it is supposed to obtain other benefits of globalization (Purvis et al, 1991). At the same time, this has created serious concerns in many nations also in spite of the above-mentioned benefits of financial reportage under IFRS. The main reason for this concern is that though it has many advantages, it may sometimes countermand country-specific interests (Barton, 1999). The internationalization can lead to the emergence of many account setting bodies which can have their feature specific interests that can be in conflict with the interests of a particular nation. These groups can have the predominate power in such cases and the sp ecific interests of a nation can be ignored. This has been a problematic issue in the recent years. IFRS has many major requirements, among which the main is the lead for fair judge reporting of their financial matters by the public companies in their financial statements. Based on this approach, the exchange price estimates need to be the basis for the asset and liability measurement in some cases. These prices need to be in a transaction at present and between parties who argon not associated with each other and are known (Landsman, 2006 Ryan, 2008). However, this approach has raised many questions among the different scholars later. There have been many concerns regarding the fair value approach. In case of illiquid grocerys, the fair values can be obtained only by adjusting for illiquidity. Here, the market to market values or market to model values will be the adjustment done for tenderness of fair values (Landsman, 2006).