ESCAPING PROFESSIONAL DOMINANCE?

Financial accounting dominance is detrimental to the effective practice of management accounting and that, rather than promoting convergence, we should be vigilant about working toward management accounting's liberation. Those who recognize the dangers of the professional dominance of FA must d...

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Bibliographic Details
Published in:Cost management 2011-09, Vol.25 (5), p.43
Main Authors: Clinton, B Douglas, Matuszewski, Linda J, Tidrick, Donald E
Format: Magazinearticle
Language:English
Subjects:
Compliance
Cost accounting
CPAs
Financial reporting
Joint ventures
Leadership
Management accountants
Management accounting
Management decisions
Roles
Online Access:Get full text
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Summary:Financial accounting dominance is detrimental to the effective practice of management accounting and that, rather than promoting convergence, we should be vigilant about working toward management accounting's liberation. Those who recognize the dangers of the professional dominance of FA must do more to articulate an understanding that FA principles are inadequate to support MA practice and will often result in suboptimal decisions. Hopefully, once convinced of the need to reject the trappings of FA, we will be more likely to adopt a mindset that MA must be done first, not if there is time left over after compliance accounting duties. The IMA recognizes this and recently established a task force for exposure suggested cost modeling principles and an accompanying conceptual framework for managerial costing. This conceptual framework is intended to highlight the foundational difference between MA and FA and will help promote a clearer distinction of MA job roles from compliance accounting job roles, document the state of the art, and provide good practice guidance. The goal is not the regulation of methods and practices but the articulation of fundamental MA principles that are able to provide fact-based guidance regarding the theory and practice of managerial costing. The IMA recognizes this and recently established a task force for exposure suggested cost modeling principles and an accompanying conceptual framework for managerial costing.