Finman Essay

2593 Words Jan 26th, 2015 11 Pages
In Management accounting or managerial accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which allows them to better manage and perform control functions

IFAC Definition of enterprise financial management embracing three broad areas: cost accounting; performance evaluation and analysis; planning and decision support. Managerial accounting is associated with higher value, more predictive information.[1] Copyright July 2009, International Federation of Accountants
One simple definition of management accounting is
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Management accountants therefore are seen as the "value-creators" amongst the accountants. They are much more interested in forward looking and taking decisions that will affect the future of the organization, than in the historical recording and compliance (score keeping) aspects of the profession. Management accounting knowledge and experience can therefore be obtained from varied fields and functions within an organization, such as information management, treasury, efficiency auditing, marketing, valuation, pricing, logistics, etc.
Differences between financial accountancy and management accounting[edit]
Management accounting information differs from financial accountancy information in several ways: * while shareholders, creditors, and public regulators use publicly reported financial accountancy information, only managers within the organization use the normally confidential management accounting information; * while financial accountancy information is historical, management accounting information is primarily forward-looking; * while financial accountancy information is case-based, management accounting information is model-based with a degree of abstraction in order to

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