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Management accounting the Accountancy of this century.

With Globalisation of accountancy profession and harmonisation of practices across globe it has become imperitive to ponder upon a comprehensive set of practices addressing all the stakeholders and framing country(economy) neutral policies and practices which will render optimum reporting benefits.

While Book-keeping and financial statements have always been given prominence in the accounting sphere for the reasons best known as adequately addressing owners needs the pitfall in the system was well visualised during World-war II and the beginning of Cost Accounting practices have laid path to what is today known as management accounting.

Management accounting is Global term employed to address various issues primarily starting with determination of cost of product , process and service Business process re-engineering mechanism,triple bottomline,CSR,BSC, and the entire gamut of understanding the business in terms of resource consumption,measuring output in financial and non-financial parameters etc. It includes project accounting,investment decision,planning et al.

Thus one can see management accounting as a comprehensive set of facilities that addresses issues involving double-entry bookkeeping but not limited financial statements and all such effort to monitise or quantify a scheme of things in vogue either by enterprise or government for a profit or not-for profit motive.

Blog posted by RV

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