The domination of financial accounting on managerial accounting information

This study has a two-fold purpose. First, it seeks to determine the importance of financial accounting information to railroad investors (and speculators) in 1880s America. Second, a further goal is to ascertain what financial accounting information was readily available for use by these investors. Based on a comprehensive search of books of the era, the 1880s were a time of expanding advice for railroad securities holders that required the use of financial accounting information. Furthermore, new information sources arose to help service investors' needs. Statistics by Goodsell and The Wall Street Journal were two such sources. This article reviews these publications along with the ongoing Commercial and Financial Chronicle and Poor's Manual of the Railroads of the United States. Each of these sources helped railroad investors to follow contemporary advice of gathering financial accounting and other information when investing.

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PROFESSIONAL DOMINANCE: THE RELATIONSHIP BETWEEN FINANCIAL ACCOUNTING AND MANAGERIAL ACCOUNTING, 1926–1986

Accounting Historians Journal ◽

10.2308/0148-4184.29.2.91 ◽

2002 ◽

Vol 29 (2) ◽

pp. 91-121 ◽

Cited By ~ 9

Author(s):

Alan J. Richardson

Keyword(s):

Management Accounting ◽

Financial Accounting ◽

Managerial Accounting ◽

Letters To The Editor ◽

Management Accountants ◽

Professional Dominance ◽

The Relationship

This paper examines the relationship between financial and managerial accounting as reflected in articles, editorials and letters to the editor published in Cost and Management, the Canadian trade magazine for management accountants, between 1926 and 1986. It has been claimed that during this period management accounting techniques lost their relevance to manufacturers, in part, due to the dominance of financial accounting over managerial accounting. This is also the period in which management accounting struggled to become recognized as a profession distinct from financial accounting. The analysis thus focuses on the jurisdictional dispute between financial and managerial accounting and the mechanisms by which managerial accounting was subordinated to financial accounting. The paper identifies the technical, organizational and professional mechanisms used to subordinate managerial accounting. The paper also demonstrates that management accountants were aware of the consequences of their relationship to financial accounting for the relevance of their techniques. Contemporary events suggest that the intersection of financial and managerial accounting remains disputed territory.

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Selecting Railway Investments in 1890s America

Accounting Historians Journal ◽

10.2308/aahj-10525 ◽

2017 ◽

Vol 44 (1) ◽

pp. 77-93

Author(s):

Joel E. Thompson

Keyword(s):

Financial Reporting ◽

Accounting Information ◽

Accounting Standards ◽

Financial Accounting ◽

Investment Strategies ◽

Financial Accounting Standards Board ◽

Accounting Data ◽

Rational Decisions

ABSTRACT The purpose of financial reporting is to provide information to investors and creditors to help them make rational decisions (Financial Accounting Standards Board [FASB] 2010). Tracing the development of investors' methods should help with understanding the role of financial accounting. This study examines investment practices involving railways in 1890s America. As such, it furthers our knowledge about the development of investment methods and their necessary information. Moreover, it shows that as investment methods grew in sophistication, there was an enhanced demand for greater comparability in accounting data to make meaningful analyses. Competing investment strategies, largely devoid of accounting information, are also discussed.

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Linking Cybersecurity and Accounting: An Event, Impact, Response Framework

Accounting Horizons ◽

10.2308/horizons-2020-101 ◽

2021 ◽

Author(s):

Diane J. Janvrin ◽

Tawei (David) Wang

Keyword(s):

Financial Performance ◽

Additional Research ◽

Financial Accounting ◽

Impact Response ◽

Managerial Accounting ◽

Response Strategies ◽

High Profile ◽

Research Findings

Due to recent high-profile cybersecurity breaches and increased practitioner and regulatory attention, organizations are under pressure to consider the accounting implications of these attacks and develop appropriate responses. Specifically, cybersecurity events may affect organizations’ operations, financial and non-financial performance, and ultimately its stakeholders. To address how cybersecurity issues may affect accounting, this paper presents an Event, Impact, Response Framework to discuss current research and consider implications for both practitioners and researchers. The Framework highlights how practitioners may rely on research findings to better assess cybersecurity threats, understand their impact, and develop response strategies. Results encourage additional research examining how (1) organizations identify cybersecurity threats, incidents, and breaches, (2) cybersecurity affects different risks, and (3) management responses to cybersecurity risks and events. Further, the Framework suggest the need for cybersecurity research to extend beyond the AIS community to areas such as financial accounting, managerial accounting, and auditing.

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METHODS OF BALANCE SHEET ITEMS EVALUATION AND RECOGNITION IN FINANCIAL ACCOUNTING AND THEIR IMPACT ON LIQUIDITY INDICATORS

Latgale National Economy Research ◽

10.17770/lner2011vol1.3.1815 ◽

2011 ◽

Vol 1 (3) ◽

pp. 204

Author(s):

Iveta Mietule ◽

Rita Liepiņa

Keyword(s):

Data Acquisition ◽

Balance Sheet ◽

Accounting Information ◽

Evaluation Methods ◽

Financial Accounting ◽

Financial Reports ◽

Financial Indicator ◽

Separate Balance ◽

Economic Nature ◽

Indicator Evaluation

Displaying and evaluation methods of the accounting information in the financial reports influence greatly the authenticity, indicator evaluation and making decisions of the economic nature. In the article the evaluation methods of separate balance items, their influence on the indicators of the companies’ liquidity are interpreted, the problems of the balance item classification in the financial reports are updated. The authors believe that when investigating a specific financial indicator (for example, liquidity) it is important to analyse and evaluate both the methodology of data acquisition in accounting and to evaluate the methods of recognition of these elements in financial reports.

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Cost with time can yield reliable and relevant financial accounting information

Corporate Ownership and Control ◽

10.22495/cocv2i1p5 ◽

2004 ◽

Vol 2 (1) ◽

pp. 60-72 ◽

Cited By ~ 1

Author(s):

Eno L. Inanga ◽

Bruce Schneider

Keyword(s):

Decision Making ◽

Accounting Information ◽

Financial Statements ◽

Financial Accounting ◽

Corporate Accountability ◽

Accounting Data ◽

Historical Cost ◽

Lead Users ◽

Accounting Reports ◽

Nominal Amount

It is generally accepted that one of the key financial accounting problems of the day is how to make financial accounting reports, as tools for corporate accountability and stewardship reporting, both reliable and relevant. Practitioners, rule makers, and academics are struggling with this dilemma that is inherent in historical cost financial statements. This paper suggests that historical cost, transactions- based accounting data is nominally reliable, which is an attribute of relevance, but it can be made timelessly relevant, if data about the precise date and time the nominal amount of the transaction was measured are made available to users. Furthermore, the presumption those company-related accountants and the auditors need to prepare a set of financial statements that they need to make relevant to an unknown set of users, should be abandoned. The valuation algorithm, the processes for making historical cost data relevant to situation-specific decision-making, are the prerogative and, most importantly, the responsibility of the users based on their perceptions of the dynamic, quantum world and their unique needs. The paper develops the logical reasons for the positions taken. It also argues that US-GAAP and the resulting financial statements may lead users of accounting information to allege that the financial statements are fraudulent. It is well-recognized by accountants and users that time, the details of which are currently under-reported, is a material fact related to the significance and usefulness of accounting information. Thus, the omission of facts about when the measurements were made, known to be important to understanding the reported information, may be the basis for the allegation of fraud.

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The Impact of the Application of International Standard for Financial Reporting No (9) on the Faithful Representation of Financial Accounting Information in Jordanian Commercial Banks

International Journal of Business and Management ◽

10.5539/ijbm.v14n3p88 ◽

2019 ◽

Vol 14 (3) ◽

pp. 88

Author(s):

Amer Sulaiman Alkhresat ◽

Tareq Hammad Almubaydeen

Keyword(s):

Financial Reporting ◽

Commercial Banks ◽

Stock Exchange ◽

Accounting Information ◽

Correlation Coefficients ◽

Study Data ◽

Financial Accounting ◽

Faithful Representation ◽

Ifrs 9 ◽

The Impact

The purpose of this study is to demonstrate the impact of the application of IFRS 9 on the faithful representation of financial accounting information in Jordanian commercial banks. To achieve this objective, the study used the descriptive analytical approach to analyze a questionnaire that was answered by the managers of 13 commercial banks, which are listed in Amman stock exchange. The researchers distributed 78 questionnaires, while 76 were retrieved with a percentage of 97%. Additionally, the study relied on the descriptive statistics, correlation coefficients, and the simple regression to analyze the study data, and hypotheses. As a result, the study found a significant impact for the application of IFRS 9 to the faithful representation of financial accounting information. Relied on the aforementioned consequence, the study recommended that there is a necessity for financial departments to focus on measuring their financial obligations, as well as focusing on the development of accounting policies during the application of the standard. In addition, the study concludes that it is important for these banks to have an adequate knowledge of accounting standards in general, while standard No “9” specifically.

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Do donors respond to discretionary accounting information consolidation?

Journal of Public Budgeting Accounting & Financial Management ◽

10.1108/jpbafm-03-2018-003 ◽

2018 ◽

Vol 30 (1) ◽

pp. 16-39

Author(s):

Benedikt Quosigk ◽

Dana A. Forgione

Keyword(s):

Charitable Giving ◽

Accounting Information ◽

Performance Measure ◽

Financial Accounting ◽

Financial Statement ◽

Financial Accounting Standards Board ◽

Content Type ◽

Segment Reporting ◽

Allocation Decisions ◽

Practical Implications

Purpose The purpose of this paper is to investigate donor responses to discretionary accounting information consolidation. Nonprofit (NP) financial statement consolidation discretion significantly impacts program ratio reporting, the primary NP performance measure. Stakeholders are misled to allocate limited resources inefficiently. While some NPs file group Internal Revenue Service (IRS) Form 990 returns with their affiliates, effectively providing consolidated statements, others choose to file independently of their affiliates. Design/methodology/approach The authors use OLS regression analysis and panel data for 5,697 NP-year observations for the period 2009-2011 retrieved from the National Center for Charitable Statistics Form 990 database. Findings The authors find evidence that consolidation discretion substantially impacts donor decisions. NP managers have incentive to utilize consolidation discretion to influence charitable giving. Practical implications The authors urge the IRS and the Financial Accounting Standards Board to reconsider the consolidation guidance for NP organizations, to develop performance measures beyond the widely used program ratio, and to require program ratio segment reporting to allow for better comparability among NPs irrespective of consolidation status. Further, the authors caution stakeholders to consider supporting organization transactions in their resource allocation decisions. Originality/value The authors are the first to use NP supporting organization information to investigate consolidation discretion and its impact on donor responses.

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Using Cases Published in Issues in Accounting Education: Categories and Topics at a Glance

Issues in Accounting Education ◽

10.2308/iace.2006.21.4.417 ◽

2006 ◽

Vol 21 (4) ◽

pp. 417-430 ◽

Cited By ~ 11

Author(s):

Marlys Gascho Lipe

Keyword(s):

Information Systems ◽

Service Sector ◽

Ethical Issues ◽

Accounting Information ◽

Cost Accounting ◽

Accounting Education ◽

Financial Accounting ◽

Accounting Information Systems ◽

For Profit ◽

Not For Profit

To increase accessibility, cases published in Issues in Accounting Education from its inception through November 2006 are categorized by course area. Course categories include accounting information systems, auditing, financial accounting, managerial/cost accounting, and taxation. Specific course topics addressed in each case are identified. Additional tables list cases addressing ethical issues and cases using governmental or not-for-profit entities and firms in the service sector.

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