Friday, February 3, 2012

Management accounting by definition

Definition – (By Institute of Cost and Works Accountants of India) Management accounting is defined as a system of collection and presentation of relevant economic information relating to an enterprise for planning, controlling and decision making.

(By Institute of Chartered Accountants of India)-Such of its techniques and procedures by which accounting mainly seeks to aid the management collectively have come to be known as management accounting.

(By International Federation of Accountants)- Management Accounting is the process of:

Identification and Measurement – The recognition and valuation of business transactions or their economic events that have occurred or may occur;

Accumulation- The discipline and consistent approach to recording and classifying appropriate business transactions and other economic events;

Analysis – The determination of reasons for and the relationship of the reported activity with other economic events and circum stances;

Preparation and interpretation – The meaningful coordination of accounting and/ or planning data to satisfy needed for information presented in logical format and if appropriate, include the conclusion drawn from the data;


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