Tuesday, October 13, 2009

PAPER AKUNTANSI KEUANGAN DAN AKUNTANSI MANAJEMEN

This paper discusses Management Accounting and Financial Accounting (Akuntansi Keuangan dan Akuntansi Manajemen) as well as linkages between them.

DEFINITION OF MANAGEMENT ACCOUNTING AND FINANCIAL ACCOUNTING
Accounting management is the discipline related to the use of accounting information by management and internal parties for purposes other product costing, planning, control and evaluation, and decision-making. The general instructional objectives of this course is expected to evaluate students and engineer the management accounting systems that match the operating conditions and organizational strategies.

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 principles used in financial accounting is the accounting equation (Assets = Liabilities + Equity). Financial accounting records in relation to any transaction for a company or organization and preparation of periodic reports from these records the results. This report is prepared for the public interest and is usually used to assess the company owner or manager of achievement used as a manager of financial accountability to its shareholders. This is important from a financial accounting of Financial Accounting Standards (SAK) which are the rules that must be used in the measurement and presentation of financial statements for external purposes. Thus, the expected users and compilers of financial reports can be communicated through these financial statements, because they use the same reference of SAK. SAK was began to be applied in Indonesia in 1994, replacing the Accounting Principles prinsi Indonesia in 1984. (Wikipedia)

MANAGEMENT ACCOUNTING HISTORY
In 1880an, American manufacturers began to concentrate in the development of production technology large capacity. The managers and engineers at metal company has developed a procedure to calculate the relevant cost product called scientific management. This procedure is used to analyze the productivity and profits of a product. However, as the development of accounting thought in 1914, then after the procedure began to disappear from corporate accounting practices.

After World War I, there are financial accounting rules that have reduced the impact of accounting information is useful for evaluating the performance of subordinates in a large company (lost relevance). Until the 1920s, all the managers believe the information related to primary production processes, transactions and events that generate a nominal amount of the financial statements. After the year 1925, the information used by managers to be more simple and more manufacturing companies in the United States have developed management accounting procedure known as now.

During more than sixty years, accounting academics trying to restore the relevance of accounting information with the boarding of financial accounting information. The business will use a simple manufacturing model, similar to the 19th century textile companies, and in order to overcome production problems, academics reorder supplies kos reporting information. Nevertheless, the model is too simple to explain the real problems faced by managers but it would dimahfumkan in order to facilitate the boarding of how information derived from financial statements can be made relevant to the decision-making (lodging management).

Beginning in the 1980s until now, management accounting experience a rapid period of development with its role as co-financial accounting.

Johnson and Kaplan write beautifully in the "Relevance Lost: The Rise and Fall of Management Accounting". The book is good enough to read to understand about management accounting.

CRISIS IN MANAGEMENT ACCOUNTING
Bob Eiler and Tom Cucuzza

For a few months ago, the accounting profession through events and major changes, which mostly focus on performance and financial accounting issues (such as accounting rules are complex financial, ethical aspects of the profession and so on). Meanwhile, in a journal that we took argues that the crisis in management accounting as big as the crisis in financial accounting. It can be concluded in relation to the crisis in management accounting are:

A. FACTOR FROM users
In the traditional management accounting focuses on providing only to internal users such as factories, division, or internal corporate environment and do not follow the company's economic expansion, particularly in the external part of the business consists of inventory, joint ventures, special purpose companies and others. Along with the global demands more attention focused on the ability of management accounting to measure and evaluate internal and external fields in order to optimize the company's decision to be taken by external parties. The parties are:

1. Internal
Internal party is the party that is in the organizational structure. Management is the party most in need of proper accounting statements and inaccurate to make good decisions and correct. Examples like the manager who saw the company's financial position to decide whether to buy the building for a new branch office or not.

2. Externally
a. Investors
Investors require financial information to determine whether the company will invest or not. If the predictions will give investors a good profit, then investors will deposit the capital into the company, and vice versa.

b. Shareholders / owners of the company
The owner of the company that has part of the company's financial information companies need to be able to know the extent to which progress or setbacks experienced by the company. Shareholders will benefit from the dividends that will be even greater if the company a fortune.

c. Government
The amount of tax to be paid to the company or government organization based on the bulk of the information on the company's financial statements.

d. Creditor
If the company is driven and require fresh funds may be borrowed company money to creditors such as borrowing money in the bank, owed goods on supplyer / supplier. The lender will provide funds if the company has good financial condition and will not have a great potential for loss.

e. Other Parties
Actually there are many other parties from outside the company that the company might be using the reporting / accounting information of an organization such as employees, unions, auditors of public accountants, police, students, journalists, and many others.

B. FACTORS OF LIMITATIONS ON CONTRIBUTIONS AND PROCESS
Management accounting is not dependent on accounting principles. SEC and FASB to set accounting procedures must be followed to report prosess of keuangan.masukan and financial accounting must be clear and limited. Only the economic activities that meet certain qualifications as input and process, must follow the accepted method by the public. Unlike financial accounting, management accounting has no special institutions that govern the format, content, rules in selecting inputs and processes, and preparation of financial statements. Managers are free to choose whatever information they want-penyediaanya can be justified on the basis of cost-mamfaat analysis (cost-benefit analysis).

Today in the conventional charging is becoming obsolete and switch to event-based charging / activity-based costing system (ABC-system). Management accounting in the development of many contemporary issues in management techniques were adopted, such as the method just in time (JIT), total quality management (TQM), target costing, and customer orientation.

Manager's performance appraisal is now beginning to shift. When first assessing the performance of a manager is only from the financial perspective, but now to obtain a more comprehensive picture of the two perspectives should be known as a balanced scorecard. Performance assessment will be done from two sides, namely financial (financial) and non-financial such as assessment of customer / customer, growth and learning, as well as internal business processes.

Balanced scorecard is the latest issues in management accounting. Balanced scorecard is a strategic management system that outlines the mission and strategy of an organization into operational objectives and performance benchmarks for four different perspectives, namely financial perspective, customer perspective, internal business perspective, and learning and growth.

C. TYPES OF INFORMATION
Type of management accounting information:
Management accounting information can be attributed to three things, namely the object information (products, departments, activities), alternatives will be selected, and the authority of managers. Therefore, management accounting information is divided into three types of information:

1. Full Accounting Information (Full Accounting Information).
Management accounting information includes information of the past and information future. Management accounting information which contains the past information is useful for reporting financial information to top management and outside the company, profitability analysis, providing an answer to the question "how much it costs already spent for something", and determining the selling price in cost-type contract.
Management accounting information, which provides the future be 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.

2. Accounting Information Differential (Differential Accounting Information).
Accounting information are estimates differences differential assets, income, and / or the cost of other alternative actions. Differential accounting information has two main elements, namely an information future and differed between the alternatives faced by decision makers. Differential accounting information which is only concerned with cost is the cost differential (differential costs), which is only concerned with income is called income differential (differential revenue), and the relevant assets by asset called differential (differential assets).

3. Accountability Accounting Information (Responbility Accounting)
Accountability accounting information is information assets, income, and / or costs associated with the managers responsible for specific accountability center. Accountability accounting information is important information in the process of management control because the information emphasized the relationship between financial information with the managers responsible for the planning and implementation. Accountability accounting information is thus a basis for analyzing the performance of managers as well as to motivate the managers in carrying out their plan set forth in the budget of their own.

Management accounting information system is not bound by a formal criterion that explains the nature of the input, process and output. These criteria are flexible and based on the goal of management.
The general objective of management accounting systems:

  1. Provide information required in the calculation of the cost of services, products, and any other desired destination management.
  2. Providing information used in planning, control, evaluation, and continuous improvement.
  3. Providing information for decision making. Management accounting information can help identify a problem, solve problems, and evaluate performance. Thus, management accounting information is needed and used in all tahapmanajemen, including planning, controlling, and decision-making.


Financial Accounting Information
Financial accounting information is a general purpose information (general purposes) are presented in accordance with Accounting Principles thank General (PABU). This information is used for internal and external parties. Financial Accounting information is presented with the assumption that the information needed investors, creditors, potential investors and creditors, management, government, and so can represent the information needs of other parties besides investors and creditors. Thus required a uniform information to all interested parties with the company's business. In general, Financial Accounting Information compiled and reported on a periodic basis so that management can meet the needs of timely information. In addition, Financial Accounting Information presented in formats that are too stiff, so less able to meet the information management needs.
According to the Statement of Financial Accounting (SFAC) No.. 2 The qualitative characteristics of financial information is as follows:

1. Relevant point is the capacity of information that can encourage a decision if utilized by the user to predict the outcome in the interests of future events based on past and present. There are three main characteristics, namely:

  • The accuracy of the time (timeliness), the information that the user is ready for use before the loss of meaning and capacity in decision making.
  • Predictive Value (predictive value), the information can help users in making predictions about the end result of past events, present and future.
  • Feedback (feedback value), the quality of information that the user can confirm memngkinkan expectations that have occurred in the past.


2. Reliable, the intention is the quality of information that is guaranteed free of errors and irregularities or biases and have been vetted and properly presented in accordance with its objectives. Reliable has three main characteristics, namely:

  • Can be checked (veriviability), the consensus in the choice of accounting measurements that can be assessed through its ability to ensure that if information is presented based on a particular method gives the same result if diverivikasi by the same method by an independent party.
  • Honesty representation (representation faithfulness), namely the correspondence between numbers and descriptions akunatnsi and its resources.
  • Neutrality (neutrality), a neutral financial information intended for the general needs of users and independent of assumptions about the particular needs and desires of specific users tertrentu information.


3. Power of Appeals (comparability), financial information that can be compared to present similarities and differences that arise from the basic similarities and basic differences in the companies and transactions and not merely from differences in accounting treatment.
4. Consistency (consistency), the uniformity in the determination of accounting policies and procedures that do not change from period to period.

D. TIME ORIENTATION
Financial accounting is more likely to the orientation of the past and reported after the incident occurred. Although the management accounting is also recorded and reported after the incident took place. It is strongly emphasized the provision of information. Management, for example, do not just want to know what the cost for the production process, but also want to know what the cost would be incurred to produce a product. By knowing what the cost is used for a production that can help planning the purchase of raw materials and pricing, besides other things. This future orientation is used to support managerial planning and decision making.

In this article many critics said that management accounting has become a short-term oriented. A company needs to measure the truth of the information effectively the company's performance, therefore, on balance scorecard should not be only one report describing what happened, but should, based on the variability of the key factors affecting the economic performance of companies in the future. And companies often do not report the overall internally to understand the long-term corporate goals. So there is no picture of the entire company, which eventually led to the crisis in management accounting

E. LEVEL aggregation
Provides a measure of management accounting and internal reports used to evaluate the performance of the company, product lines, departments, and managers. The point is that very detailed information on the need and provided. Financial accounting on the other hand focuses on overall corporate performance and provide a better perspective on aggregate.
There are several stages in the internal performance measures:

1. Reported net income for the purchase of materials at the beginning of the reporting lines of management and use of capital costs for assets. In this stage using the base, the company income statement consists of several components:
Gross Revenue
(-) Cost of raw materials (BBB)
Income after BBB
Adjustment of income (change, discounts)
Net income after BBB
Internal and outsourced costs
Operating margin
Interest (cost of capital assets, net x)
Net profit before tax
Taxes
Net profit after tax

2. For purposes of internal performance measurement, presentation should be reported margin is net profit after tax on net income after the BBB.

3. Report additional measure (operating leverage), which measures the percentage change in net income between the two periods of the percentage change in net income thus achieving economies of scale are positive.

4. Focus on outsourcing activities, such as information technology costs. The size of the total cost of outsourcing activity is not only stated in the bill but also includes biayadari internal activities such as accounts payable, procurement, and management necessary to support the outsourced activities.
As for external reporting elements can be described as follows:

F. Vastness
Management accounting is much broader than financial accounting. Include management accounting aspects of managerial economics, engineering industry (industial reengineering), knowledge management, as well as other fields.
Breadth of management accounting has keberdayaujian nature of objectivity and a relatively less important than the financial accounting, management accounting for the future-oriented and does not affect outside parties. Decisions taken at the akmen only estimates based on information (approximate or observations), without first seeing the reality of what really happened. Therefore, the decision must be taken quickly as the actions to be taken from the results of observations obtained. In other words, the action taken in the form of preventive action. Namely, trying to gauge what will happen in the future in the short term, responded in hopes of producing greater profits.

CONCLUSION
There are some issues faced by the profession. Truth requires management accounting information for effective performance measurement. Management accounting should be prepared to provide management with the entire picture of the company. Report to the parties in the organization to:

  • Planning
  • Direction and motivation
  • Control
  • Evaluation of work
  • Emphasis on decision-making that affects the future.
  • Emphasis on relevant data.
  • Required information on time.
  • The apartment is in the detailed reports about the departmental segment, products, customers, and employees.
  • Do not need to follow accounting principles generally accepted.
  • Not compulsory.

1 comment:

  1. first time visitor to your blog I am very impressed.
    Economics :)

    ReplyDelete