Corporate Trends And Accounting Scandals

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‘The so called ‘new’ management accountant of recent times is quite possibly just a fantasy of new image seekers’ (Baldvinsdottir et al. 2010). Baldvinsdottir et al. (2010) argues that the concept of ‘new’ management accountants is just modern day attempt to cast of the old stereotypes of management accountants being ‘dull’ and ‘boring’ and trying to market them as something new and exciting. However, Burns & Baldvinsdottir (2007) suggest that the roles of a management accountant have indeed changed and in turn they have turned more into ‘hybrid accountants’ with their roles becoming more ‘exiting’ and ‘consulting-based’ (Burns, J. & Baldvinsdottir, G. 2007). In this essay I intend to show that although key drivers such as globalisation,…show more content…
These traditional roles of a management accountant suggest that they were in fact just scorekeepers. Their primary job was to monitor and control to ensure financial targets were met. The last three decades have seen significant changes in the business world; the globalisation of business has seen drastic changes in the roles and information needs of top managers (Cooper, P., Dart, E. 2009). Globalisation means that firms are not only competing with others locally but now, as a result of faster and cheaper transport costs and real time information, they must also compete against others from around the world. This creates bigger markets and gives the consumer a wider choice, which results in shortened product life cycles and rapidly changing customer tastes (Burns, J. & Baldvinsdottir, G. 2007). This diversification of markets sparks claims that financial information should be coupled with more non-financial information to help create strategy and deliver key insight into organisational management (Fraser, M. 2012). For example development of Total Quality Management systems and the increasing focus on Customer satisfaction requires this non-financial information to be incorporated into management accounting systems (Vaivio, J. 1999; Howell and Soucy 1987). This shift in information needs highlights the changing role of the management accountant. “Managers want people who can influence the score not simply report the score”, (Anastas, 2000, p.16). No
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