Nama : Ammer Umar
Kelas / NPM :
3EB23 / 20211672
TUGAS SOFTSKIL BHS.INGGRIS BISNIS 2
DEFINITION OF
MANAGEMENT ACCOUNTING AND FINANCIAL ACCOUNTING
Accounting management is the discipline with respect to the use of accounting information by management and other internal parties for the purposes of product costing, planning, control and evaluation, and decision making. The common instructional goals of this course is the students are expected to evaluate and manipulate the management accounting system that matches the operating conditions and strategy of the organization. ( 1. Simple present)
Accounting management is the discipline with respect to the use of accounting information by management and other internal parties for the purposes of product costing, planning, control and evaluation, and decision making. The common instructional goals of this course is the students are expected to evaluate and manipulate the management accounting system that matches the operating conditions and strategy of the organization. ( 1. Simple present)
Financial accounting is part of the accounting related to the
preparation of financial statements for external parties, such as shareholders,
creditors, suppliers, and government. The main principle used in financial accounting is
the accounting equation (Assets = Liabilities + Equity). (2. Simple past) Financial accounting problems
associated with recording transactions for a company or organization and
preparation of periodic reports on the results of the record. This report is
prepared for general interest and is typically used to assess the achievements
of the company owner or manager of manager used as financial accountability to
shareholders. The important thing is the existence of financial accounting
Financial Accounting Standards (IFRSs) which are the rules that must be used in
the measurement and presentation of financial statements for external
stakeholders. Thus, expected users and compilers of the financial statements
can communicate through the financial statements, because they use the same reference,
namely SAK. The SAK began to be implemented in Indonesia in 1994, replacing the
principles of Indonesia Accounting 1984. (Wikipedia) (simple past)
HISTORY OF
MANAGEMENT ACCOUNTING
In the 1880s, American manufacturing company began
to concentrate in the development of large-capacity production technology. (3. Simple past) The managers and engineers at the
metal company has developed a procedure to calculate the cost of the relevant
product called scientific management. This procedure is used to analyze the
productivity and profit of a product. However,
as the development of accounting thought so after the procedure in 1914 began
to disappear from the company's accounting practices.
After World War I, there is a financial accounting rules that
have reduced the impact of accounting information useful for evaluating the
performance of subordinates in large companies (lost relevance). Until 1920, all managers believe the
information related to primary production processes, transactions and events
which result in a nominal amount in the financial statements. After 1925, the
information is used by managers to be more simple and a lot of manufacturing
companies in the U.S. have developed management
accounting procedures as it is known today. (4. Simple present perfect)
During a period of more than sixty years, accounting academics trying to restore the relevance of accounting information rooming with financial accounting information. The attempt to use a simple model of manufacturing companies, similar to the 19th century textile company, and in order to address the problem of production, academics reorder inventory kos reporting information. Nevertheless, the model is too simple to explain the real problems faced by managers but it how the information in order to facilitate boarding derived from the financial statements can be made relevant to the decision-making (management kos).
Beginning
in the 1980s to the present, management accounting experience a period of rapid
growth with its role as a chaperone financial accounting.
Johnson and Kaplan write beautifully in "Relevance Lost: The
Rise and Fall of Management Accounting". (5. Simple
present) Book a decent enough
read to understand about management accounting.
CRISIS MANAGEMENT IN ACCOUNTING
CRISIS MANAGEMENT IN ACCOUNTING
Bob
and Tom Eiler Cucuzza
Over
the past few months, the accounting profession and experienced the major
changes, which mostly focuses on the performance and financial accounting
issues (such as financial accounting rules are complex, ethical aspects of the
profession, and so on). While we are taking in the journal argued that the crisis
in management accounting as great as the crisis in financial accounting. It can
be concluded with regard to the crisis management accounting is:
A. FROM FACTORS users
A. FROM FACTORS users
In
traditional management accounting focuses on providing only to internal users such
as factories, division, or the company's internal environment and do not follow
the company's economic expansion, especially in the external part of the
business consisting of supplies, joint ventures, and other special purpose
company. Along with the global demands more attention focused on the ability of
management accounting to measure and evaluate internal and external areas of
the company to optimize the decisions to be taken by external parties. The
parties are:
1. Internal party
1. Internal party
Internal parties are parties that are in the organizational
structure. (6.simple present) Management is the most in need of proper
accounting statements and inaccurate to make good decisions and correct.
Examples such as managers who see the financial position of the company to
decide whether to buy a building for a new branch office or not.
2. External parties
a.
Investor
Investors require a company's financial information to determine
whether to invest or not.
(7. Simple present) .If the predictions of the investor
will benefit from the good, then the investor will deposit capital into the
company, and vice versa.
b.
Shareholders / owners of the company
The
owner of a company that has a part share financial information companies need
to be able to determine the extent of progress or setbacks experienced by the
company. Shareholders will benefit from the dividends that will be even greater
if the company huge profits.
c. Government
c. Government
The
amount of tax to be paid by the company or organization to the government of a
large part based on the information in the financial statements of the company.
d.
Creditors
If
the company is desperate and in need of fresh capital the company may borrow
money to creditors such as borrowing money in the bank, owes goods on supplyer
/ suppliers. Creditors will provide funds if the company has a good financial
condition and will not have a great potential for loss.
e.
Other Parties
Actually
there are many other parties from outside companies that may be using report /
accounting information of an organization such as employees, unions, public
accounting auditors, police, school / college students, journalists, and many
others.
B. FACTORS OF RESTRICTIONS ON INPUT AND PROCESS
B. FACTORS OF RESTRICTIONS ON INPUT AND PROCESS
Management accounting does not depend on accounting principles (8
. simple present) .EC
and FASB sets accounting procedures that must be followed to report and prosess
of financial accounting should be clear and limited. Only certain economic
activities that qualify as inputs and processes, should follow the method
accepted by the public. Unlike financial accounting, management accounting does
not have a special institution set the format, content, rules in selecting
inputs and processes, and the preparation of financial statements. Managers are free to choose whatever information they want-
can be justified on the basis of cost-analysis
(cost-benefitanalysis).(9.Simplepresent)
Today the conventional charging is becoming obsolete and switch to the imposition of activity-based costing / activity-based costing system (ABC-system) (10. present continous) . In the development of management accounting a lot of contemporary issues in management techniques were adopted, such as the method of just-in-time (JIT), total quality management (TQM), target costing, and customer orientation.
Performance assessment manager is starting to shift (11. present contunous) . If the first assess the performance of a manager is quite simply from a financial perspective, but now to get a more comprehensive picture of the two perspectives should be known as the balanced scorecard. Performance assessment will be carried out from two sides, namely financial (financial) and non-financial such as assessment / customer, learning and growth, and internal business processes. (12.Simplefuture) . Balanced scorecard is the latest issues in management accounting. Balanced scorecard is a strategic management system that describes an organization's mission and strategy into operational objectives and performance measures for four different perspectives, namely financial perspective, customer perspective, internal business perspective, and learning and growth.
C. TYPES OF INFORMATION
Today the conventional charging is becoming obsolete and switch to the imposition of activity-based costing / activity-based costing system (ABC-system) (10. present continous) . In the development of management accounting a lot of contemporary issues in management techniques were adopted, such as the method of just-in-time (JIT), total quality management (TQM), target costing, and customer orientation.
Performance assessment manager is starting to shift (11. present contunous) . If the first assess the performance of a manager is quite simply from a financial perspective, but now to get a more comprehensive picture of the two perspectives should be known as the balanced scorecard. Performance assessment will be carried out from two sides, namely financial (financial) and non-financial such as assessment / customer, learning and growth, and internal business processes. (12.Simplefuture) . Balanced scorecard is the latest issues in management accounting. Balanced scorecard is a strategic management system that describes an organization's mission and strategy into operational objectives and performance measures for four different perspectives, namely financial perspective, customer perspective, internal business perspective, and learning and growth.
C. TYPES OF INFORMATION
Types
of management accounting information:
Management
accounting information can be attributed to three things, namely the object
information (product, department, activity), an alternative will be chosen, and
the authority of the manager. Therefore, management
accounting information is divided into three types of information:(13.simplepresent)
1. Full Accounting Information (Full Accounting Information).
1. Full Accounting Information (Full Accounting Information).
Full accounting information includes information
both past and future information. (14. Simple
present) Full accounting information which contains the past information
useful for reporting financial information to the top management and outside
parties, analysis of the ability to generate profits, giving an answer to the
question "how much money is spent on something", and determining the
selling price in the cost type contract.
Full
accounting information which contains the future information useful for the
preparation of the program, the determination of the normal selling price,
transfer pricing, and determining the selling price set by the government.
(Simple present)
2.
Accounting Information Differential (Differential Accounting Information).
Differential
accounting information is the estimated difference of assets, income, and / or
costs in the other action alternatives. Differential
accounting information has two main elements, which is the future of
information and differences between the alternatives faced by decision makers.
(15. Simple present) .
Differential accounting information is only concerned with the cost of
so-called cost differential (differential costs), which is only concerned with
the so-called revenue income differential (differential revenue), and is
concerned with the so-called asset assets differential (differential assets).
3. Accounting Information Responsibility (Responsibility Accounting)
3. Accounting Information Responsibility (Responsibility Accounting)
Responsibility accounting information is
information assets, income, and / or costs associated with the manager who is
responsible for a particular responsibility center. (16. simple present) Responsibility accounting
information is information that is important in the management control process
because the information stresses the relationship between financial information
to managers who are responsible for planning and implementation. Responsibility
accounting information is thus a basis for analyzing the performance of
managers and also to motivate managers to carry out their plans as outlined in
their respective budgets.
Management accounting information system is
not bound by any formal criteria that describes the nature of the input,
process and output.
(These criteria are flexible and based on management objectives to be achieved.
The
general objective of management accounting systems: Provide the information required in the
calculation of the cost of services, products, and other objects of interest
management.
Provide information that is used in planning, control, evaluation, and continuous improvement. Provide information for decision making. Management accounting information can help identify a problem, solve problems, and evaluate performance. (17. simple present). Thus, management accounting information is needed and used in all, including planning, controlling, and decision making.(18.Simplepresent)
Financial Accounting Information
Provide information that is used in planning, control, evaluation, and continuous improvement. Provide information for decision making. Management accounting information can help identify a problem, solve problems, and evaluate performance. (17. simple present). Thus, management accounting information is needed and used in all, including planning, controlling, and decision making.(18.Simplepresent)
Financial Accounting Information
Financial
accounting information is aimed at the general information (general purposes)
are presented in accordance with Accounting Principles Thanking General (GAAP).
This information is used for internal and external parties. Accounting
information is presented with the assumption that the information required of
investors, creditors, potential investors and creditors, management,
government, and so can represent anyone other than the information needs of
investors and creditors. Thus it takes a uniform information to all interested
parties with the company's business. In general, the Financial Accounting
information is compiled and reported periodically so it can not meet the needs
of management for timely information. In addition, the Financial Accounting
information is presented in a format that is too stiff making it less able to
meet the information management needs.
According
to Statement of Financial Accounting (SFAC) No.. 2 Qualitative characteristics
of financial information is as follows:
1.
Relevant point is that the information capacity could push a decision when
utilized by the user to predict the outcome of interest in the future based on
past and current events. There are three main characteristics, namely:
Timeliness
(timeliness), that information
is ready to be used by users before it loses meaning and capacity in
decision-making. Predictive value
(predictive value), that information can help users in making predictions about
the outcome of events past, present and future.
Feedback (feedback value), the quality of information that the user can confirm the expectations has happened in the past.
Feedback (feedback value), the quality of information that the user can confirm the expectations has happened in the past.
2.
Reliable, meaning the quality of information
that is free of errors and irregularities or bias and has been properly
assessed and presented in accordance with its objectives. Reliable has
three main characteristics, namely:
Can be checked (veriviability), the consensus in the choice
of accounting measurement that can be assessed through its ability to ensure
that the information presented is based on whether a particular method gives
the same results when verified by the same method by an independent party.
Honesty representation (representation faithfulness), is a match between the figures and descriptions as well sources. Neutrality (neutrality), a neutral financial information intended for the general needs of the users and in spite of certain assumptions about the needs and desires of the users specific information.
Honesty representation (representation faithfulness), is a match between the figures and descriptions as well sources. Neutrality (neutrality), a neutral financial information intended for the general needs of the users and in spite of certain assumptions about the needs and desires of the users specific information.
3.
Power of Appeals (comparability), the financial
information that can be compared to present the similarities and differences
that arise from the basic similarities and differences in corporate and
transaction basis and not solely from differences in accounting treatment.
4. Consistency (consistency), the uniformity in determining policies and accounting procedures that do not change from period to period.
4. Consistency (consistency), the uniformity in determining policies and accounting procedures that do not change from period to period.
D. ORIENTATION TIME
Financial
accounting over the past tended to orientation and reported after the incident
occurred. Although management accounting also recorded and reported after the
incident took place. This strongly confirms the
provision of information (19.
simple present) . Management, for
example, do not just want to know how much it costs to production processes,
but also want to know what are the costs to be incurred to produce a product.
By knowing what it will be used for a production that can help plan the
purchase of raw materials and pricing, as well as other things. Future
orientation is used to support managerial planning and decision-making.
In
this article many critics say that management accounting has become short-term
oriented. A company requires the truth of information to effectively measure
the performance of the company, therefore the balance scorecard should not only
be one report that describes what is happening but it should be based on the
variability of the key factors affecting the economic performance of the
company in the future. And companies often do not report internally to
understand the overall long-term corporate goals. So there is no picture of the
entire company, which in turn led to a crisis in management accounting
E. LEVEL AGGREGATION
Management accounting and provides a measure of internal reports
that are used to evaluate the performance of the company, product lines,
departments, and managers (20. simple present) . The bottom line is very detailed in
the information needed and provided. Financial accounting on the other hand
focuses on overall company performance and provide a more aggregate
perspective.
There are several stages in the internal performance measures:
There are several stages in the internal performance measures:
important as financial accounting, management accounting as
the future-oriented and do not affect outsiders. Decisions taken at akmen only based on estimated information
(approximate or observations), without looking at it first reality is actually
happening. Therefore, decisions must be taken quickly as the actions to be
taken from the results of observations obtained. In other words, the actions
taken in the form of preventive measures. Namely,
trying to gauge what will happen in the future in the short term, responding
with hope of producing greater profits.
CONCLUSION
There are several issues facing the professions. Requires management accounting information is correct for effective performance measurement. Management accounting should be prepared to provide the whole picture of the company management.
CONCLUSION
There are several issues facing the professions. Requires management accounting information is correct for effective performance measurement. Management accounting should be prepared to provide the whole picture of the company management.
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