Question

It is argued that the role of management accounting in the global age has increased more than ever. Do you agree with this argument ?

What are the implications of globalization from the viewpoint of management accounting and management accountants ?

Answer 1

The accounting profession has witnessed another severe criticism in the light of the recent global economic turmoil. Many questions were raised about the role of accountants in the era of globalization. As a result, there has been a greater research interest opportunities touching the role of the accountants with a special focus in its metamorphosis spanning from the past till the present, keeping in mind the future direction of accountants in the private and public enterprises. This paper therefore seeks to explore the role of accountants, their challenges and the perception of the public toward accountants in the era of globalization.

Management accounting has been defined in many different ways, whether by describing its roles or describing its objectives and processes. Generally, it could be remarkable that the traditional definition of management accounting describes management accounting based on the fact of providing information to the managers, so management accountants were considered as information providers only as we notice from the following definition: "Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy

urthermore, The American Institute of Certified

Public Accountants (AICPA) states that management

accounting as practice extends to the following three

areas:

· Strategic Management: Advancing the role of the

management accountant as a strategic partner in the

organization.

· Performance Management: Developing the practice of

business decision-making and managing the

performance of the organization.

· Risk Management: Contributing to frameworks and

practices for identifying, measuring, managing and

reporting risks to the achievement of the objectives of

the organization

urthermore, The American Institute of Certified

Public Accountants (AICPA) states that management

accounting as practice extends to the following three

areas:

· Strategic Management: Advancing the role of the

management accountant as a strategic partner in the

organization.

· Performance Management: Developing the practice of

business decision-making and managing the

performance of the organization.

· Risk Management: Contributing to frameworks and

practices for identifying, measuring, managing and

reporting risks to the achievement of the objectives of

the organization

urthermore, The American Institute of Certified

Public Accountants (AICPA) states that management

accounting as practice extends to the following three

areas:

· Strategic Management: Advancing the role of the

management accountant as a strategic partner in the

organization.

· Performance Management: Developing the practice of

business decision-making and managing the

performance of the organization.

· Risk Management: Contributing to frameworks and

practices for identifying, measuring, managing and

reporting risks to the achievement of the objectives of

the organization

urthermore, The American Institute of Certified

Public Accountants (AICPA) states that management

accounting as practice extends to the following three

areas:

· Strategic Management: Advancing the role of the

management accountant as a strategic partner in the

organization.

· Performance Management: Developing the practice of

business decision-making and managing the

performance of the organization.

· Risk Management: Contributing to frameworks and

practices for identifying, measuring, managing and

reporting risks to the achievement of the objectives of

the organization

The American Institute of Certified Public Accountants (AICPA) states that management

accounting as practice extends to the following three areas:

· Strategic Management: Advancing the role of the management accountant as a strategic partner in the organization.

· Performance Management: Developing the practice of business decision-making and managing the

performance of the organization.

· Risk Management: Contributing to frameworks and practices for identifying, measuring, managing and reporting risks to the achievement of the objectives of the organization