Management Accounting and the Environment Essay

Management Accounting and the Environment - attempt ExampleThere argon different approaches which help to identify the future goals of Charity organizations and detect the threats. Accountants enquiry of Charity organizations go throughs useful insights into the nature of push throughline itself. Management accountancy in Charity organizations is normally associated with to a greater extent rational approaches to reporting.Perhaps its greatest contribution lies in providing the precaution accountant strategist a kind framework for analysing the position of organizations at a particular moment in time. It can also be useful in the development of a number of strategic options which attempt to tackle opportunities and threats, build on corporate strengths and avoid weaknesses. An important consideration is that for most management there is a choice of strategy (Collins, Davies, Weetman, 1992).New environment needs the approach based upon the assumption that information is readil y available to the accountants and an dead-on(prenominal) assessment can be made of its likely impact on organizations. This is not always the faux pas and the entire process is subject to behavioural influences. The so-called rational techniques have been criticized as pseudo-science. Nonetheless this is the base approach used by many researchers (Kirkham, Loft, 1993). In the 1980s the emergence of an increasingly complex and degenerate business environment called for modifications in the rational approach.The environment plays an important role for gentle organizations, because there are more groups for whom the financial records are of potential interest. These groups include paid staff, volunteers, beneficiaries, donors (including grant making trusts), institutional and corporate funders, government departments, rating authorities, The Charity Commission, the press and the public as well as the Inland tax income and HM Customs and Excise. As a result of this Charity Accoun ts can be subject to more requirements than private sector organisations of equivalent size (Parker, 2001).In the light of this it is possible to distinguish three master(prenominal) manoeuvers of accountants the raising of funds or financial management the contribution of accounting to management control and decision-making and the function of financial reporting. Accountants in Charitable organizations need to prepare and maintain accounting records. These records must be carry for at least six years (at least three years in the case of charitable companies), and make the accounts available to the public on request.In charitable organizations accounts can be prepared development one of two bases receipts and payments basis which consists of an account summarising all money received and paid out by the charity in the year in question, and a statement giving details of its assets and liabilities at the oddity of the year. Accruals basis contains a balance sheet showing the char itys financial position at the end of the year in question, a statement of financial activities (SOFA) during the year and explanatory notes. They, in accountancy terms, should give a true and fair view (Sayer, 1998). Recent years accounting has been seen as a management function which obtains influenced significantly by those who prepare and