ACCA F2 is ACCA’s first glance at Management Accounting – an ACCA student revises it for ACCA Paper F5 and at a election down the road with Paper P5. It's sensible to reflect on what management accounting is, and how crucial it is in the modern business environment.
An ACCA financial accountant gives important information, by process of financial statements, basically to serve the requirements of parties outside of the corporation, such as shareholders, creditors, government agencies (e.g. tax offices) and investors.
Because financial statements are historic, internal, financial and holistic (shoing ‘whole’ company data) they do not meet the complete needs of management who make big decisions, and need to command the routines of the organisation. On the contrary, to realize these aims, management also want future and external data, non-financial facts and segmented information (e.g., profit and costs of each and every product-market, not only the profit and loss of the entire organisation). Also, management run in intricate, aggressive and ever changing business environments, surrounded by changing technologies and practices. These are the arguments why the modern manager requires support from ACCA gurus.
The role of the management accountant is to get hold of pertinent internal and external data (both financial and non-financial) and then to convert it into meaningful and relevant management decision-making and control information. But more than that – a management accountant presents managerial advice which involves the untangling, analysis, assessment and evaluation of the information provided.
To assist in achieving these goals, management accountants have, over the past hundred years or so, formulated procedures, models and frameworks that allow to make their guidance more proficient and effective. Of course, these methods are relentlessly growing.
A couple of these techniques, models and frameworks are focused upon in the ACCA F2.
When functioning in a corporation, an ACCA financial accountant rarely gets to see (let alone to discuss with) shareholders, creditors, government agencies and the like, yet every day the ACCA management accountant will be ‘bombarded’ with demands, issues and problems from management! don't underrate the role of the modern ACCA management accountant. ACCA F2 covers vital areas of modern financial management.
Good luck with your studies of ACCA F2.
For more information on ACCA F2 and it’s core modules to assist with the ACCA exam, have a look at the TonySurridge website now
Wednesday 12 October 2011
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