From Relevance Lost to Relevance Regained: Malaysia Experience'' IBRAHIM KAMAL ABDUL

106 Pages·2015·6.06 MB·English

24th ACCOUNTING TEACHERS CONFERENCE (ATC) /
2nd MID-YEAR CONVENTION WITH PHILIPPINE INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS (PICPA)
IBRAHIM KAMAL ABDUL RAHMAN
UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL
“From Relevance Lost to Relevance Regained:
Malaysia Experience’’
Date: 20th October 2015
Venue: Hotel Istana, Kuala Lumpur
Malaysia
PRESENTATION OUTLINE
PART 1 – INTRODUCTION
PART 2 – NATIONAL AWARD FOR MANAGEMENT ACCOUNTING
PART 3 – AWARD WINNERS
PART 4 – CONTRIBUTIONS, PUBLICITY, AWARD WINNERS &
RECOGNITION
PART 1
INTRODUCTION
Management Accounting as Defined by IFAC:
“the process of identification, measurement,
accumulation, analysis, preparation, interpretation
and communication of information (both financial
and operating) used by management to plan,
evaluate, and control within an organization and to
assure use of accountability for its resources”.
Management Accounting as a Strategic Tool
Controlling the current activities of an

organization
Planning its future strategies, tactics and

operations
Optimizing the use of its resources

Measuring and evaluating performance

Reducing subjectivity in the decision making

process; and
Improving internal and external

communication
Managerial Accounting Basics
Comparing Managerial and Financial Accounting
Management Accounting Framework
Stakeholder
Adding Value
CONTINUOUS
LEADERSHIP STRATEGIC OPERATIONAL
LEADERSHIP LEARNING &
MANAGEMENT ALIGNMENT
IMPROVEMENT
Enable individual
Creating and Creating and Formulating and
Planning for the and
infusing shared infusing shared communicating
future organizational
beliefs beliefs strategy
learning
Creating and Creating and Acquiring process
Identifying, Communicating
infusing shared infusing shared improvement skills
managing risks vertically
boundaries boundaries
Facilitating Facilitating
Assessing Coordinating Acquiring process
effective decision- effective decision-
performance horizontally improvement skills
making making
Enabling Enabling
Evaluating & Streamlining
organizational organizational Analysing decision
rewarding compliance duties
change & change & alternatives
employees
innovation innovation
Partnering to
improve operations
Source: Brewer, Peter, C. (2008)
Evolution of Management Accounting
Strategic Focus
& Risk
Management
Phases of Evolution
Fundamentally, the evolution can be distinguished into four phases:
Stage 1 (prior to 1950)
- Focus was on cost determination related to stock valuation and allocation of overheads.
- Techniques included Last in First Out (LIFO) and First in First Out (FIFO).
Stage 2 (1965-1985)
- Focus on generating information for management planning and control
- Techniques included marginal costing and responsibility accounting
- Aimed at helping managers to choose course of action and create strategic business units
Stage 3 (1985-1995)
- Focus was on process analysis together with cost management technologies
- Techniques included Just in Time (JIT) and Activity Based Costing (ABC)
- Aimed at reducing waste and expenses incurred, thus increasing expected profits
Stage 4 (1995 onwards)
-Identifying factors that could potentially increase shareholder’s value and eliminating non-value added activities
- Techniques included Total Quality Management (TQM), Activity Based Management (ABM), Benchmarking and
Re-engineering
- Aimed at value creation through resources
Management Accounting Best Practice
Focuses on Four Elements:
1 FUNCTION RELATED
CONCEPTS
2 OUTCOME UTILITY
RELATED CONCEPTS
3 PROCESS & TECHNOLOGY
RELATED CONCEPTS
4 FUNCTION CAPABILITY
RELATED CONCEPTS