Corporate governance perspective the role of management accounting

Abstract: This paper analyzes corporate governance and management accounting implications that management accounting and corporate governance in improving the efficient functioning of the company to play an increasingly important role.

Keywords: corporate governance role of management accounting

China Securities Regulatory Commission's chief accountant, director of the International Accounting Standards Board Meets with IMA Cheung, Chief Executive Officer Paul Shaman made his speech: "China's capital market, there are still significant growth potential of capital market development, without transparency, governance, financial high information for stakeholders to make decisions, Management Accounting as an important means of internal management, to improve the quality of financial information throughout the company play a crucial role. "visible, little to the rise and fall of an enterprise as large as a national capital markets developed or not, management accounting to play a pivotal role.

Corporate governance is a modern enterprise system, the various participants on the provisions of the company, such as shareholders, board of directors, managers, employees and other company stakeholders responsibilities, rights and interests, a clear decision by the company's affairs when the rules and procedures to be followed a system arrangement, is a kind of company management and control system now has a representative, there are two main theories of corporate governance. First, principal-agent theory .1932 years, Berle and Means proposed the "Ownership and Control separation "point of view, since the issue of corporate governance has been defined as the separation of ownership and control under the" agent "problem .20 1970s and 1980s, corporate governance research has focused on the dispersed ownership structure is characterized by U.S. companies , so 80 years ago mainly based on the theory of corporate governance as represented by principal-agent theory, corporate governance goal is to protect the interests of shareholders, to ensure that shareholders get return on investment. Second, stakeholder theory from the 1990s onwards, gradually extended to the study of corporate governance in Japan and Germany as the representative of the country, companies in these countries is more concentrated ownership structure, corporate governance, the main problem is no longer simply the owner and manager of the agency problem between the theoretical that the study of corporate governance, including shareholders, creditors, employees, consumers, supply and marketing business and the communities in which stakeholders, including the relationship between provisions and institutional arrangements between them, so companies seeking to maximize shareholder value in the and consideration should also be concerned about the interests of stakeholders are not compromised.

Management accounting is a branch of the definition of management accounting at present there is no unified conclusion, whether foreign or domestic accounting profession, the definition of management accounting have their own views .1952 year, held in London on behalf of International Accountants Congress formally proposed accounting academics, "Management Accounting (Management Accounting" of the term. American Accounting Association Management Accounting Committee is defined as: "the party is the use of management accounting techniques and concepts, process and analyze historical or projected financial information, to help business managers to develop business objectives, preparation of plans, made a series of decisions, in order to achieve business objectives. "British Institute of Management Accountants to the cost and management accounting is defined as:" management accounting is to provide the required management that part of the accounting information, so that the management authorities to determine the policies, the activities of the enterprise planning and control, to protect the security of property, outside the enterprise personnel to reflect the financial position, financial situation to the workers to reflect on the various options for action program to make decisions that end, need to develop long-term plans to determine short-term business plan, record, correct the error, and control access to various funds. "

China's accounting scholars Wangjia You (1987 that "Western management accounting in order to strengthen the internal management of corporate operations, and achieve maximum profits, flexible use of a variety of ways to collect, process and clarify the management and rational economic planning and control process required for effective information around the costs, profits, capital three centers, analyzing the past, control the present, planning for the future of a branch of accounting. "Yu Xu Ying (1999 that" management accounting is the integration of modern management and accounting, to business leaders provide management information and management accounting, it is a management information system, a subsystem is an integral part of decision support systems. "As one branch of accounting financial accounting and its disclosure in corporate governance and play an indispensable role, but give full play to the accounting information in the proper role of corporate governance, financial accounting system alone is not enough. It is precisely because of the financial reports that are hosted by the limited nature of the information, the scope of information disclosure, quantity and quality missing, making shareholders and other stakeholders from the current financial report can not adequately meet the information. Once the information needs of management accounting, management accounting will have a significant branch presence and in improving corporate governance and the efficient functioning of the company will play an increasingly important role.

(A and complementary financial management, improve and perfect the enterprise accounting system.

Financial accounting focuses on the past record and summary of business conditions, production of financial statements, reporting and auditing, and management accounting focuses on the future, made in the financial statements on the basis of a great deal of analysis and comparison, performance prediction , decision-making, planning, control and evaluation functions. visible, financial accounting and management accounting roles, but also common for business services and sound business enterprise should be clearly defined system requirements involved in accounting and related work responsibilities, privileges, programs , responsibilities, internal management at all levels must exercise their powers and duties within the scope of responsibility. handling personnel must be within the purview of doing business, and should establish a standardized system for foreign investment decisions and procedures, daily operations of the enterprise standardization be seen, accounting systems, business improvement and implementation is one of the important long-term development.

(Two for managers to provide a variety of business management information to help managers plan, decision-making and control.

Plans to operational decision-making as a basis for the decision-making process selected by the program to determine the number of targets for performance, and adjust them, aggregated into a system, to effectively grasp the future, to achieve cost-effective use of resources, for greatest achievement in corporate management, the correct preparation of the plan will help fully mobilize and coordinate all aspects of corporate strength, so that joint efforts towards the intended target. management decision-making process is to select and decide the future course of management plan . to advance decision-making, for example, pre-transformation decision-making is in the product development, expansion equipment renovation, put forward a variety of advanced technology and scientific program to calculate the cost differences and differences in income in advance, and finally choose the best solution. Control is a business management means inevitable, but also plans to achieve the necessary means. target program "budget", "Standard", "fixed" data such as indicators and business planning and decision making of the actual implementation of the results of comparative analysis, inspection and evaluation, so that the business activities planned manner to achieve business targets. To achieve effective control of production and business activities, management accounting from a variety of channels to obtain a wide variety of information, such as accounting information, statistics, business accounting information and other relevant information, etc. and track activities, the implementation process, implementation of measurement programs, the reasons for the differences in the formation and responsibilities to conduct a comprehensive analysis and evaluation.

(Three for the corporate governance powers and responsibilities to provide a unified theory and methods.

And corporate governance suited to the management accounting innovation is mainly reflected in responsibility accounting system innovation. Responsibility is reflected in the accounting and control responsibility center (rights, responsibilities and interests of unity within the unit to perform the responsibilities of the method, and corporate governance itself is a kinds of powers and responsibilities of the unity of the institutional arrangements, so there is a natural link between the two. responsibility for the accounting by responsibility center, responsibility for budget, performance appraisal, accounting processing system composed of the traditional responsibility of central control of access by cost center into or cost centers, profit centers, investment centers, in corporate governance responsibility center can be extended to company executives, board of directors, shareholders, to reflect the economic responsibility, to establish an incentive mechanism, the level of responsibilities as a shareholder, controlling shareholder of the major constraints to act to prevent damage to small shareholders controlling shareholders The Board is of the highest rights body within the company, as decision-making center managers are implementing specific management organization, a business center division of responsibility center budget needs to responsibility for the preparation , can be controlled according to the principles of design of the centers of the performance index, and the responsibility of accounting controls and accounting, which require the application of corporate governance, content management accounting methods. procedure is as follows: corporate responsibility in order to strengthen internal management, staff motivation and increase production Labor initiative and enthusiasm in the preparation of a "total budget", the production and operation within the enterprise but also to the establishment of units for all responsibility centers and responsibility accounting is decentralized management within the enterprise under the conditions established in a number of responsibilities within the enterprise unit , and their economic activities, the division responsible for planning and control, accounting information is the responsibility of working closely with the relevant contact information control system of responsibility centers progressively the whole enterprise into as many areas of responsibility, let the responsible person in charge of the their functions, duties, based on cost, profit or investment occurred clarify responsibilities, and follow the responsibilities, rights and interests of unity of principle, to determine the ownership of each responsibility center and finally by the responsibility center performance reports of the actual number of comparison with the budgeted amount, to evaluate and assess the work performance of each responsibility center and operating results, respectively, reveal their achievements and problems, penalties and rewards, to ensure the implementation of economic responsibility.

(Four for the shareholders and board of directors the responsibility to fulfill other aspects of performance evaluation information.

performance evaluation on the board of directors, among domestic and foreign scholars are in the exploration of China's Ministry of Finance In 2002, five ministries jointly issued a set of performance evaluation index system, but the performance of the board of directors has not yet systematic and comprehensive evaluation program. Foreign scholars Melcher ( with nine projects in 1996 was to evaluate the best and worst of the Board of Directors, Canadian Institute of Management Accountants (CMA Association to use the Balanced Scorecard management accounting (the Balanced Scorecard indicators from more than 20 measures in four areas of fiduciary duty the board of directors, the establishment of the board's performance evaluation system, I believe that, in management accounting, based on the evaluation board should be positioned as a core business strategy, supported by effective mechanisms for internal operations and external communication. corporate strategic positioning of the board for positioning of the enterprise should have a long-term vision, attention to sustainable development of enterprises, not just the ability to short-term interest of effective internal operating mechanism of the board has a line and effective decision-making mechanism, and should use its corporate governance and business management of the dual authority to establish an effective control system, the company orderly and effective operation. external communication mechanism requires the establishment of corporate and external corporate governance institutions, investors, creditors, customers and community contacts and communication systems.

References:

[1] Sheng Mingquan, management accounting [M], Shanghai: Gezhi Press: Shanghai People's Publishing House, 2008.

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