Financial & Management Accounting Essay Example | Topics and Well Written Essays - 4750 words

Financial & Management Accounting - Essay ExampleIt is a way for organisations to be accountable to their stakeholders, but is also a management tool to improve the performance of the organisation.This essay foc engagements on understanding the role explanation, including loving and ethical accounting, plays in identifying and maintaining accountability from the viewpoint of a publicly traded business organisation.Adopting social and ethical accounting has helped organisations to achieve improved results in their quest for excellence. This helps in enlightening the stakeholders about the activities of the organisation that meet the need to be accountable to the society, environment and the government. It also has shown to pretend the performance on other fronts, viz.The use and extensive deployment of digital technologies and growing concerns about the social and environmental responsibilities of organisations calls for a change in the traditional view of accounting practices. In the new scenario the affect is felt in not just their functioning in economic terms, but also brings broader social, institutional and organisational effects into play. On a purely technological level, mobilisation of Information Technology (IT) influences organisational processes directly. As understanding of its potential is growing, the definition of managerial pursuits and the search for enhanced organisational performance is also changing. Inevitably, IT impacts the form, substance and provenance of inherent accounting information. This influences the behaviour and actions of decision-makers. Knowledge about the influence of digital technologies on accounting thinking processes and practices is starting to emerge. Thinking on a variety of issues relating to price strategies, cost management and control mechanisms has already changed. However, the implications for the field are far extensiver. Aspects of trust, organisational power and influence, cultural shifts, and choice o f strategy are altering management accounting systems, structures, thinking and practices.3.0 Financial and Management Accounting3.1 Financial AccountingFinance is used by governments, businesses and individuals as well as by a wide variety of organisations including schools and non-profit organisations. In general, the goals of each of them are achieved through the use of appropriate financial instruments, with consideration to their institutional setting. Financial Accounting studies and addresses the ways in which individuals, businesses and organisations raise, share and use monetary resources over time and reporting the results to all those who participate in the risk associated with the projects undertaken. Financial accounting may thus incorporate the train of money and other assets and the management and control of those assets. In contemporary organisations the finance is usually provided by a set of people or organisations completely antithetic from those who are respon sible for the management of the money and assets of these