how to improve effectiveness of managerial accounting

8/3/2019 How to Improve Effectiveness of Managerial Accounting

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Group 5: Applications of managerial

accounting in Vietnam

Nguyen Hue Minh

Hoang Van Nga

Hoang Hong Nhung

La Hong Nhung


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Content

1 Managerial accounting?

2 Managerial accounting in Vietnam

3 Suggestions


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Definition of Managerial Accounting

Managerial accounting is concerned with providing information

to managers - that is people inside an organization who direct

and control its operation.


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Characteristics of Managerial Accounting

Users are those INSIDE the organization

Emphasize on FUTURE ORIENTATION

Flexible to provide whatever data RELEVENT to a particular

decision

Emphasizes TIMELINESS

Focuses much more on the detailed SEGMENTS of a company

NOT need to follow GAAP

NOT MANDATORY


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Provide information on the costs of an organizations

products and services in order to help managers makedecision about selling price.

Prepare budgets

P

rovide performance report Other information to assist managers plan and control

Roles of Managerial Accounting


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Current situation of Managerial

Accounting in Vietnam

In the world, Managerial Accounting appeared in the

19

th

century and now has been highly developed.

Just mentioned systematically since 1990s

Defined in Accounting Law in May 17th 2003

Started to be taught in universities from that time on


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Incoherently operated as cost accounting, payment accounting



Quite new field: Lack of experiences and habits of using

More focus on Financial Accounting: Better financial reports to reduce taxes,

attract investments

Mainly uses records of financial accounting, not have a separate system

The ineffective usage of accounting data for management requirement


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Procedural and lack of timeliness.

Accounting Law in 2003: Definitions rather

than specific guides.

Low technology: Difficulties in tracing,

recording, restoring or analyzing data

Recently, rising awareness of using Managerial

Accounting due to global competition


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Improving the Effectiveness

of Managerial Accounting


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Suggestions for Government

publish concepts, theories, and general

recognition + directions, policies and regulations

of corporate accounting systems for all enterprises

support for enterprises in research, human

resource training, building managerial accounting

system

build a bank of economic data


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Suggestions for Enterprises


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Clearly define objectives

of management

accounting

Suggestions for enterprises


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Learn from other

corporations in

the world


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Develop

unified

production

process


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Information gathered

from multiple sources

and by variety methods


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Require professional skills

Understand about production

process and business activities

Accountants


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High-level leaders of

companies should

actively participate in

building managerial

accounting system.


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Managerial

accounting

reports

Other

business

reports

More comprehensive view


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Apply informationtechnology in

management

Easier to update

and analyze data


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how to improve effectiveness of managerial accounting

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