Management Accounting

The Role of the Management Accountant

Presented by Suppervised by

Essmoum Meriem

GHAZI Rabab

HAJAJ Achraf

HUET Morgan Mr K.CHARAF

HOW HAVE MANAGEMENT ACCOUNTANTS’ ROLES AND RESPONSIBILITIES CHANGED? 2

HOW HAS MANAGEMENT ACCOUNTING CHANGED DURING THE LAST DECADE? 1

LEADING QUESTIONS

GENERAL INFORMATION ABOUT THE SURVEY

• Presentation of the survey• Objectives of the survey• Trends and events that took place during 2003 to 2012• Key findings of the survey

PRESENTATION OF THE SURVEY

The original survey The 2012 survey

-size of the sample : 2000 people-Survey about the future of management accounting profession-Profession has reached a crucial point: shifting roles and practices recessionary economy emerging range of MA techniques

-Replica of a 2003 survey-Size of the sample : 238 people-goal of that study : understand the impact of the changes and events (that occured in the last decade) over the management accounting profession-changes and events : development of IFRS, major financial frauds and failures such as the home mortgage collapse or Lehman Brothers

OBJECTIVES OF THE SURVEY

WHICH FACTORS CONSTRAIN OR ACCELERATE ADOPTION OF THESE TOOLS?

HAVE THERE BEEN FUNDAMENTAL CHANGES IN THE ROLE OF MANAGEMENT ACCOUNTING?

DO EXISTING TOOLS FULFILL THE CHANGING NEEDS?

WHAT ROLE HAVE NEW TECHNOLOGIES PLAYED?

Trends and events that took place during 2003 to 2012

• Development of International Financial Reporting Standards (IFRS) has globalized the perspectives of accountants around the world.

• Major financial frauds and failures have continued to occur, such as the home mortgage collapse, Lehman Brothers, Bernard Madoff, and others.

• The U.S. economy has continued to endure significant financial austerity, including the subprime mortgage crisis, increased capital market volatility, high unemployment, and the creation of unprecedented amounts of government spending/debt

KEY FINDINGS OF THE SURVEY

New tools are largely not considered relevant The most important priority shifted to cost

reduction and driving efficiency Factors reflecting constraints and triggers for

adoption of best practices have shifted. Cost reduction is not considered the primary way

to improve the bottom line: Demand for accuracy/transparency in costing has increased because of the continued economic downturn, but results suggest that respondents did not consider cost reduction the primary impact to their bottom lines in 2012 as they did in 2003

Availability of investment resources was not a significant constraint to pursuing improved cost management information.

KEY FINDINGS OF THE SURVEY

Management accountants are clearly valuable strategic partners, but the longitudinal perspective presented by this study over a nine-year period does not show growth in the management accountant’s role or initiative in cost management. A fundamental shift appears to be occurring in the management accounting profession, so we encourage you to examine the following survey data and this analysis for clues to the causes and nature of the shift

• The survey results• Conclusions

Role within the Company

Responsibilities of Respondents

Role of Cost Management

Priorities facing management

In the current recession,is cost reduction considered the primary way to improve the

bottom line

Has the current economic downturn generated a greater demand for more

accurate costing or more cost transparency?

Initiatives undertaken by the company in management accounting

2012 Top initiatives

2003 Top initiatives

How were the majority of these solutions or tools implemented within the organization?

What factors constrain the adoption of best practices in the organization?

which losses resulted from not implementing the tools that reflect the best practices?

what two factors would effectively trigger the adoption of best practices in the organization

CONCLUSION