MANAGERIAL ACCOUNTING IN THE AREA OF CORPORATE RESPONSIBILITY Corporate Responsibility in the Practice
MANAGERIAL ACCOUNTING IN THE AREA OF CORPORATE RESPONSIBILITY
Corporate Responsibility in the Practice
INTRODUCTION OF THE TEAM
Rafael Vera
Vasco Matos
CONTENT OF THE PRESENTATION 1. Introduction of the team
2. Introduction of the topic
3. Managerial accounting in general
4. IFRS Standards
5. Definition of GAAP
6. Tools used for CSR in Managerial Accounting
7. Summary
8. Sources
9. Vote of thanks
MANAGERIAL ACCOUNTING • Provides information about financial and economical situation of the
company to its managers, it is only used for internal purposes.
• Information from managerial accounting are used to pursuit
organization's goals
• Managers use the information in order to make better decisions
IFRS • IFRS stand for International Financial Reporting Standards
• These standards are aimed at global practice
• The goal is to archive a single set of high-quality, common accounting
standards used around the world
• These standards are a result of a convergence of international
viewpoints
• Mission is to develop IFRS Standards that bring transparency,
accountability and efficiency to financial markets around the world
IFRS STANDARDS • First-time Adoption of International Financial Reporting Standards
• Share-based Payment
• Business Combinations
• Insurance Contracts
• Non-current Assets Held for Sale and Discontinued Operations
• Exploration for and Evaluation of Mineral Resources
• Financial Instruments: Disclosures
• Operating Segments
• Financial Instruments
• Consolidated Financial Statements
• Joint Arrangements
• Disclosure of Interests in Other Entities
• Fair Value Measurement
• Regulatory Deferral Accounts
• Revenue from Contracts with Customers
• Leases
• Insurance Contracts
SCOPES OF THE FRAMEWORK
The Framework addresses:
• the objective of general purpose financial reporting
• qualitative characteristics of useful financial information
• financial statements and the reporting entity
• the elements of financial statements
• recognition and derecognition
• measurement
• presentation and disclosure
• concepts of capital and capital maintenance
FRAMEWORK PRINCIPLES
• Relevance
• Faithful representation
• Comparability
• Verifiability
• Timeliness
• Understandability
FRAMEWORK PRINCIPLES
“Corporate Social Responsibility can have a negative implication on the accounting valuation of an organization because CSR activities are done at the expense of the stakeholders where the cost of the CSR activities exceeds the benefits of stakeholders” (Moser, Martin, 2012)
• CSR has significant meaning where an organization “gives back” to the community in either a financial or
non-financial form
GAAP
GAAP Principles are based on: • Recognition • Measurement • Presentation • Disclosure • Revenue • Matching, and some others…
GAAP
TECNIQUES IN MA NOWADAYS
Standard Costing = method of recording accounting transactions. Afterwards you can analyze the differences between the standard costs and actual costs. Balanced Scorecards = tool based on performance that combines financial and non-financial measures. This technique started in the 1990s and gives a comprehensive snapshot of firm or individual performance. Real-time Inventory Management = In the past, companies used periodic or perpetual inventory systems. In the last decade there was a huge change by the advent of RFID (radio-frequency identification). Process Management = Nowadays management by exception can be applied much more efficiently by using modern quality tracking techniques.
Tools: from CSR to MA • Some of them could be divided as: Decision making
management Simulation of the CSR Planning of CSR Financial Accounting of CSR Managerial Accounting of
CSR Monitoring of CSR Reporting of CSR Control of CSR
Corporate social responsibility is the viewpoint that a business should be
more aware of its impact on society and the environment. The intent is to deliver positive outcomes for all stakeholders in
the business that result in long-term sustainability, not just a positive return
for its shareholders.
TECNIQUES IN MA NOWADAYS
Standard Costing = method of recording accounting transactions. Afterwards you can analyze the differences between the standard costs and actual costs. Balanced Scorecards = tool based on performance that combines financial and non-financial measures. This technique started in the 1990s and gives a comprehensive snapshot of firm or individual performance. Real-time Inventory Management = In the past, companies used periodic or perpetual inventory systems. In the last decade there was a huge change by the advent of RFID (radio-frequency identification). Process Management = Nowadays management by exception can be applied much more efficiently by using modern quality tracking techniques.
SUMMARY
• Managerial accounting as definition, we learn that, the process of identifying, measuring, analyzing, interpreting and communicating information to managers for the pursuit of an organization goals.
International Financial Reporting Standards is, the set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. By this, IFRS Framework is defined as a guide to the Board in developing future IFRSs and as a guide to resolving accounting issues • GAAP (Generally Accepted Accounting Principles) = Common set of accepted accounting
principles, standards and procedures that companies and their accountants must follow when they compile their financial statements.
SOURCES
https://www.ifrs.org/issued-standards/list-of-standards/ https://www.investopedia.com/terms/m/managerialaccounting.asp https://gupea.ub.gu.se/bitstream/2077/32229/1/gupea_2077_32229_1.pdf https://www.investopedia.com/articles/fundamental-analysis/12/international-financial-reporting-standards.asp https://www.iasplus.com/en/standards/other/framework https://www.accountingfoundation.org/jsp/Foundation/Page/FAFBridgePage&cid=1176164538898#section_1