Nobody downloaded yet

Management accounting and financial reporting - Essay Example

Comments (0) Cite this document
The paper starts by exploring the concept of value, then the relative difficulty of establishing a way to set fair value, and its…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.3% of users find it useful
Management accounting and financial reporting
Read TextPreview

Extract of sample "Management accounting and financial reporting"

Download file to see previous pages Value has been defined in more than one way. In the business world at least, the definition of value ranges from that of finance, to that of marketing. The difference in use according to these definitions are usually the common cause of conflicts with regard to the use of the term.
In basic finance, value, or more specifically the value of an asset in economic terms is best defined as the sum of the future benefits, or cash flows to the company which is discounted to the present (Wallace 2008). This is more commonly referred to as the fundamental value (Hanney 2008). On the other hand, built on the argument of benefits that are to be received, value in marketing is usually linked to the asset price that the buyer is willing to pay (OKelly 2008). This is the perceived value. As value is linked to utility, which is linked to perception of future benefits to the receiver of a thing, these two definitions of value, although related in the most basic way, are usually confused when being used (Rossi III, 2009).
Perceived value is the concept of true value being reflected in price of a traded commodity (Wallace 2008). This link between value and the price is held by the efficient market theory, where the price includes all the available information in the market and is a good predictor of value (OKelly 2008). Capital markets are considered efficient markets where investors are assumed to be sophisticated, rational individuals who maximise their wealth and utility, and thus only accept prices that reflect the true value of the commodity (Campbell, Owens-Jackson & Robinson 2008). This provides the link between the definition of fundamental value and the perceived value.
Accounting regulatory boards have find it hard to define the concept of fair value. According to McCollum, “obtaining information relevant to fair value is one of the biggest challenges organisations and auditors face in the current market ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Management accounting and financial reporting Essay”, n.d.)
Management accounting and financial reporting Essay. Retrieved from
(Management Accounting and Financial Reporting Essay)
Management Accounting and Financial Reporting Essay.
“Management Accounting and Financial Reporting Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Management accounting and financial reporting

Financial Accounting and Reporting

...?Financial Accounting and Reporting Table of Contents Table of Contents 2 Introduction 3 Analysis of the Financial ments of Axis Bank 4 Financial Ratio Analysis 9 Liquidity Ratios 9 Return on Equity 11 Return on Assets 12 Conclusion 12 References 14 Bibliography 15 Introduction The paper deals with LSE listed Indian bank of repute, Axis Bank Ltd. Axis bank was initially incorporated as ‘UTI Bank Ltd.’ in 1993 which offered products in retail as well as corporate banking (Pandit, 2008). The bank commenced its operating functions from the year 1994. It was the pioneer among the fresh private banks to start its operation after the permission was approved by...
7 Pages(1750 words)Essay

Financial Accounting and Reporting

...= -----------------     Sales       =0.038             Activity Analysis Ratios    Assets Turnover Ratio     Sales   Assets Turnover Ratio = ----------------------------     Average Total Assets      = 1.11 Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 The company has performed worse. Louise is not advised to continue with the investment because; 1. There is a drop in net working capital ratio. 2. There is a decrease in the return on assets. 3. There is a decrease in the return on equity. 4. There is a decrease in profits. 5. There is a drop in the assets turnover ratio.     References Elliott, B., & Elliott, J. 2008. Financial accounting and reporting (12th...
10 Pages(2500 words)Essay

Management accounting - financial reporting

...for traditional management accounting techniques in India and lower for newly developed techniques. The study reveals that Australian companies are early adopters while Indian companies are late adopters. The final study discussed by Damant (2003) in this work deals with a specific aspect of financial accounting, the income statement. The author of the study supports the view that a proposed change is needed to the traditional profit and loss account to promote better understanding and transparency in reporting. Although it is evident from the study that financial accounting requires a standardized...
12 Pages(3000 words)Essay


...Financial Reporting & Management Accounting Microsoft Corporation Strategic Consultancy Brief Company Microsoft Corporation which started in 1975 following the launch of Altair 8800 came with the first new microcomputer called Micro Instrumentation and Telemetry System (MITS) which implemented the basic programming language for the system. With the departure of Bill Gates from Harvard University to Albuquerque, New Mexico, he founded Microsoft there. The first international office was founded in November 1978 in Japan called ASCII Japan. With the emergence of Steve Balmer in 1980 who took over Bill Gates as the CEO, the corporation had its first real success in 1981 with the creation of the Disk Operating System (DOS... % 9.8 % 20.6 % 23.7...
7 Pages(1750 words)Case Study

Accounting (International Financial Reporting)

...for further three years.” (IFRSs in your pocket, 2010) The IASF is advising the IASB, which establishes international financial reporting standards (IFRS), including exposure drafts, the setting up standards, and interpretations. Since inception, the IASB has issued eight standards from IFRS 1 to IFRS 8 and 14 interpretation of the standard IFRIC 1 to IFRIC 14. The standard setting committee consists of International Accounting Standards Board (IASB) (IFRSs/IFRS for SMEs), IFRS Interpretations Committee and SME Implementation Group. Since 2001, almost 120 countries have adopted IFRS standard and expectation that remaining countries will also come under IFRS umbrella in the near...
1 Pages(250 words)Research Paper

Islamic Accounting & Financial Reporting

...companies work with noninvolvement of interest and they also minimize risks of their policyholders and IFRS is a collection of financial reporting standards which can be used in variety of industries. The main issue is not about the collaborative potential of Takaful insurance and IFRS but the real problem resides within the inability of modern insurance companies to raise enough money that is required to keep the business running. IFRS does not allow any company to use creative accounting techniques in order to fool the shareholders and Islamic Work Ethics are forebears of the abovementioned need as well (Alali & Foote, 2012). On a theoretical perspective IFRS is ideally capable of...
10 Pages(2500 words)Assignment

Financial Accounting and reporting

...INTRODUCTION TO FINANCIAL ACCOUNTING AND REPORTING By of the of the School Date INTRODUCTION TO FINANCIAL ACCOUNTING AND REPORTINGFinancial accounting and reporting relates to the process of summarizing, recording and issuing a report of a number of transactions arising from business operations in form of financial statements with an aim of presenting a true picture of its financial level and performance. It is the presentation of financial data relating to the performance, position as well as the flow of assets in a...
4 Pages(1000 words)Essay

Financial Accounting and reporting

...Running Head: FINANCIAL ACCOUNTING AND REPORT FINANCIAL ACCOUNTING AND REPORT By City, State Introduction Public limited and other companies are obligated to prepare and publish the annual financial statements. The planning and publication of the financial statements is in response to prevailing demand of various users of such financial statement. The preparation and publication of such information is subject to different laws and regulations in various countries, which influence the content and the format for preparing the financial statements. In response to the existence of different accounting practices, the International Accounting Standard has formulated various principles to bring conformity to the international accounting... ...
4 Pages(1000 words)Essay

Financial Accounting and Reporting

...for their decision making processes. This therefore requires that it be highly regulated to ensure that these needs are met. The following reasons indicate why this process should be regulated apart from the above reason. Firstly, the financial statements are usually subject to accounting fraud because the management is normally rewarded based on the company’s performance which is usually measured using the financial statements that they prepare themselves. The financial reporting should be therefore regulated to reduce the opportunistic behaviors that may come from the managers and owners to report...
15 Pages(3750 words)Assignment

Islamic accounting & Financial reporting assignment

...Islamic accounting & Financial Reporting Assignment: Ijarah Contracts Introduction The term ijarah refers to a contract in Islamic financing. It is a financing system that is compliant with Islamic sharia banking requirements. As Saleem (2012) says, in Islamic banking requirements, parties, corporate or individuals are not supposed to lend their money for interest. As a result, there are other arrangements that help banks or even individuals to gain economically even when they lend their money out to people. This takes a contract of lease that is called ijarah. Ijarah means rent or wage in Arabic. This kind of financing is different from the non sharia kind of banking. However, it has a...
10 Pages(2500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Management accounting and financial reporting for FREE!

Contact Us