Management Accounting Case Study

2102 Words Oct 11th, 2011 9 Pages
Management accounting systems
Case Analysis: HSBC Bank

Student Name:
Course:
Academic Year:
Module:
Date of Submission:
Executive Summary

Management accounting over the years has really emerged very significantly in the field of banking and finance. There are numerous objectives and significance that has been reflected in numerous literatures mentioning the primary strategic and management significance management accounting has brought to the table in the field of international finance. As mentioned by many academic and financial scholars, management accounting has today emerged as the most important financial tool which helps them attain a strong position in the market by making sound and strong strategic decisions.
This report
…show more content…
2.1 Comparing Management accounting with Financial Accounting

Characteristic | Financial Accounting | Management Accounting | Monetary Vs. non-monetary | Information is much more monitory in nature and deals with financial figures and values | This includes both financial and non financial information relating to the business. | Relevance Vs. precision | This more precision focused | This is focused on relevance | Format | This is structured and is compelled to operate on the guidelines and formats acknowledged by International Accounting Standards (IAS) | No such standards or formats are to be followed and are bespoke to the business concerned. | Planning and control | Guides to make investment decision based on elements like credit ratings etc | This helps the management to make strategically sound decisions that are based on the various elements of cost, volume, revenue. | External Vs. Internal | This is focused to provide information to parties that are external to the business like investors, shareholders etc | This is internal to the business to help management, employees and other internal players to analyse the current position of the business and make the required decisions. | Focus | Past oriented and measure historical information | Future oriented, used for budgeting and forecasting | GAAP | GAAP is compulsory | Not required | Time span | 12

More about Management Accounting Case Study

Open Document