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

Management Accounting - Essay ExampleMany case-by-case country studies reach been done on the national management method of accounting 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 seminal accounting and scandal. These two common events have created serious 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). Given this background, this essay critically evaluates the subjectivity of management accounting and the various images and practice that have shaped the subjectivity debate. The organization of the essay is given below. Section 2 discusses the debate regarding convergence to IFRS and true and fair prise 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 fiscal education 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 another(prenominal) nations also in spite of the above-mentioned benefits of financial reporting under IFRS. The main reason for this concern is that though it has many advantages, it may sometimes avoid country-specific interests (Barton, 1999). The internationalization can lead to the emergence of many account setting bodies which can have their own specific interests that can be in conflict with the interests of a particular nation. These groups can have the rule power in such cases and the specific interests of a nation can be ignored. This has been a debatable issue in the recent years. IFRS has many major(ip) requirements, among which the main is the consider for fair care for 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 amongst parties who are 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 markets, the fair set 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 estimation of fair values (Landsman, 2006).