Current Research Developments in Management Accounting and the (Possible) Implications for Teaching Željko Š ević

Change in Management Accounting Kaplan and Johnson (1987) Relevance Lost: The Rise and Fall of MA Kaplan and Johnson (1987) Relevance Lost: The Rise and Fall of MA Failure of MAS to change and develop Failure of MAS to change and develop Failure to realise the importance of ICT Failure to realise the importance of ICT Primate of Financial Accounting Primate of Financial Accounting

Global Settings Globalisation of Markets Globalisation of Markets Advances in ICT and Production Technologies Advances in ICT and Production Technologies Increased competition (price, quality, speed of delivery, customer services) Increased competition (price, quality, speed of delivery, customer services)

Micro-Challenges Core Competencies (Streamlining) Core Competencies (Streamlining) Emphasis on customer and supplier relationship(s) Emphasis on customer and supplier relationship(s) Downsizing Downsizing Outsourcing Outsourcing Flatter organisational structures Flatter organisational structures Teamwork Teamwork

Response to Challenges Johnson (1992) Relevance Regained: Johnson (1992) Relevance Regained: New Techniques: New Techniques: Activity Based Costing (ABC) Activity Based Costing (ABC) Activity Based Management (ABM) Activity Based Management (ABM) Balanced Scorecard (BSC) Balanced Scorecard (BSC) Economic Value Added (EVA) Economic Value Added (EVA) Benchmarking Benchmarking Strategic Management Accounting Strategic Management Accounting ‘TQM’ ‘TQM’ Nationally specific responses Nationally specific responses

Response to Challenges - Cont’d. (E&Y and IMA, 2003) Life-cycle Costing/Accounting Life-cycle Costing/Accounting Target Costing Target Costing Value Chain Analysis Value Chain Analysis Value-based Management Value-based Management Multidimensional Costing Multidimensional Costing Theory of Constraints Theory of Constraints Supply Chain Costing Supply Chain Costing

Academic Response Action-Based Research Action-Based Research Practice Relevant Research Practice Relevant Research Economics-biased Research Economics-biased Research Neo-classical (Principal Agent Theory, Rational Expectations – Modelling) Neo-classical (Principal Agent Theory, Rational Expectations – Modelling) Institutional (Management Accounting Change, ‘Problematisation’ in MA) Institutional (Management Accounting Change, ‘Problematisation’ in MA)

Academic Response –Cont’d. Corporate Finance/Governance Corporate Finance/Governance Overlapping with Financial Management Overlapping with Financial Management ‘Complex’ Research Topics ‘Complex’ Research Topics National MA approaches (Kaizen costing, for example) National MA approaches (Kaizen costing, for example)

New Research Opportunities Accounting and Law Accounting and Law Accounting and Public Policy Accounting and Public Policy Case-study Accounting and non- action Field Work Accounting (‘Applied Accounting Research’) Case-study Accounting and non- action Field Work Accounting (‘Applied Accounting Research’) ‘Robust’ Multidisciplinary Research in Accounting ‘Robust’ Multidisciplinary Research in Accounting ‘Applied’ Management Accounting (Public Sector, Hospitality Industry, Heritage, Arts, etc.) ‘Applied’ Management Accounting (Public Sector, Hospitality Industry, Heritage, Arts, etc.)

Accounting Teaching: The State- of-the Art Recent (Financial Accounting ) scandals (Enron, Xerox, Qwest, WorldCom, etc.) Recent (Financial Accounting ) scandals (Enron, Xerox, Qwest, WorldCom, etc.) Moral Decline (Crisis of (societal) trust) Moral Decline (Crisis of (societal) trust) Modern Executive Incentive Structures Modern Executive Incentive Structures Too Prescriptive Accounting Rules Too Prescriptive Accounting Rules Obsolete Curricula (outdated, too narrow, too specialised, missing link with ICT, over- national, rule based, non-exposure to ambiguities, lack of creativity, etc.) Obsolete Curricula (outdated, too narrow, too specialised, missing link with ICT, over- national, rule based, non-exposure to ambiguities, lack of creativity, etc.) No appreciation for practice and the needs of potential employers No appreciation for practice and the needs of potential employers

Behavioural Approach: Starting Position Ex-cathedra teaching Ex-cathedra teaching Lecture-based delivery Lecture-based delivery Examination Coaching (Assessment-driven teaching) Examination Coaching (Assessment-driven teaching) Rule-based memorising Rule-based memorising Overspecialisation Overspecialisation Poor appreciation of ICT and innovations Poor appreciation of ICT and innovations

Constructivist Approach: The Future Problem-based learning Problem-based learning Why things are the way they are? Why things are the way they are? Emphasising experience Emphasising experience Searching for alternatives Searching for alternatives Promoting collaborative efforts Promoting collaborative efforts Trying out (new) ideas (Experimenting) Trying out (new) ideas (Experimenting) Revising, revisiting theory (‘Continuous Improvement’) Revising, revisiting theory (‘Continuous Improvement’)

Research & Teaching Interface Inclusion of current, especially controversial topics (Theory vs. practice) Inclusion of current, especially controversial topics (Theory vs. practice) Case and field studies (preparation and teaching) Case and field studies (preparation and teaching) ‘Hands-on-learning’ (searching for knowledge, individual and group) ‘Hands-on-learning’ (searching for knowledge, individual and group) Processes vs. outputs and outcomes (‘correct’ solution and open-end questions) Processes vs. outputs and outcomes (‘correct’ solution and open-end questions)

Research & Teaching Interface – Cont’d. Providing wider social, environmental, historical, cultural, etc. context Providing wider social, environmental, historical, cultural, etc. context Including ethical issues into teaching Including ethical issues into teaching Enabling graduates to be an agent of change Enabling graduates to be an agent of change Ensuring ‘substance over form’ in accounting teaching Ensuring ‘substance over form’ in accounting teaching Linking theory and practice, teaching and practice (Accounting-style life-long learning) Linking theory and practice, teaching and practice (Accounting-style life-long learning) Promoting flexible modes of delivery Promoting flexible modes of delivery

‘KSA’ (Knowledge, Skills, Abilities) Communication abilities Communication abilities Ability to work in teams Ability to work in teams Analytical skills Analytical skills Solid understanding of accounting Solid understanding of accounting Knowing (and feeling) how does business work Knowing (and feeling) how does business work * Redefining Competencies *

The End Thank you very much for your kind attention.