1. GLOBAL MANAGEMENT ACCOUNTING PRINCIPLES
Elysa Hartati

2. Definition
Management accounting is the sourcing, analysis, communication and use of decision-relevant financial and non-financial information to generate and preserve value for organizations.

3. Management Accounting Financial Accounting
produces annual reports mainly for external stakeholders
generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer
It reports the amount of available cash, sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable, outstanding debts, raw material and inventory, and may also include trend charts, variance analysis, and other statistics

4. Overview
Managing and responding appropriately to risks, organizations can exploit opportunities and generate value for stakeholders over time.
Management accounting helps organizations make better decisions by extracting value from information.
Management accounting combines accounting, finance and management with the leading edge techniques needed to drive successful businesses.

6. Principles in Management Accounting

7. Notes
Communication provides insight that is influential – strategy development and execution is a conversation – communication is tailored – communication facilitates better decisions
Information is relevant – information is the best available – information is reliable and accessible – information is contextual
Impact on value is analyzed – simulations provide insight into options – actions are prioritized by their impact on outcomes
Stewardship builds trust – accountability and credibility – sustainability – integrity and ethics

8. Communication provides insight that is influential
Objective – To drive better decisions about strategy and its execution at all levels.
Good communication of critical information allows management accounting to cut across silos and facilitates integrated thinking.

9. Information is relevant
Objective – To help organizations plan for and source the information needed for creating strategy and tactics for execution.
A central role for management accounting is to make relevant information available to decision-makers on a timely basis.

10. Characteristics of Information
Time related – Information is drawn from past and present as well as from predictive insights about the future.
Boundary related – Information is not constrained by traditional organizational boundaries. It is drawn from inside and outside the organization, including from financial and operational systems, from customers, business partnerships, suppliers, markets and the macro-economy.
Data related – Information is quantitative (both financial and non-financial – including environmental and social issues) and qualitative.

11. Impact on value is analyzed – through scenario analysis and models
Objective – To simulate different scenarios that demonstrate the cause-and-effect relationships between inputs and outcomes.

12. Stewardship builds trust
Objective: To actively manage relationships and resources so that the financial and non-financial assets, reputation and value of the organization are protected.

13. Assignment
Please read the material in this slide about Global Management Accounting Principles.
Then download the e-book from this side
Next, read Chapter 3 of the e-book, How Global Management Accounting Principles are Applied, make a review of what you have understood from the reading into 2-3 pages. Submit your work next week. The same work as your friends’ will give the lowest score. If you have any queries, feel free to contact me. Thanks