Increasing convergence between the recognition of an intangible asset for financial accounting purposes and strategic management accounting and project management techniques

Seyfert, W. and Rosenberg, D. and Stack, E.M. (2006) Increasing convergence between the recognition of an intangible asset for financial accounting purposes and strategic management accounting and project management techniques. Meditari Accountancy Research, 14 (2). pp. 51-66. ISSN 1022-2529

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Abstract

New management techniques such as 'just-in-time', 'lean manufacturing' and 'Six Sigma' allow managment accountants to shift their focus from the management and control of production processes to the management of strategic issues. This paradigm shift resulted from shorter product life cycles, due to technological advances and a more competitive business environment. Recent revisions to the International Accounting Standards which are particularly supportive of life cycle costing and project management are likely to increase the focus on strategic management accounting further. This article describes developments in management accounting and the recent convergence of financial reporting in terms of International Accounting Standards with strategic management accounting and project management techniques. Strategic management accounting (particularly life cycle costing) involves applying project management techniques and using the calculus of investment to manage the project as a whole. This contrasts with managing only costs and revenues during the manufacturing phase of a project. The article demonstrates that project management techniques and the calculus of investment provide the information needed to account for the value of a project in terms of IAS 38: Intangible Assets. This will ultimately give rise to both improved decision-making and more relevant financial reporting.

Item Type:Article
Uncontrolled Keywords:deferred taxation; investment calculus; project management; strategic management accounting; intangible assets; life cycle costing; research and development
Subjects:Y Unknown > Subjects to be assigned
Divisions:Faculty > Faculty of Commerce > Accounting
ID Code:572
Deposited By: Mrs Eileen Shepherd
Deposited On:17 Sep 2008
Last Modified:06 Jan 2012 16:18
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