Evaluate The Statement Of “Strategic Management Ac

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Evaluate the statement of “Strategic management accounting is but a figment of the academic imagination” (Lord, 1996) Introduction Strategic Management Accounting (SMA) entered in management accounting literature more than thirty years (Simmonds, 1981). In 1981, Simmonds published a paper in United Kingdom (UK) professional journal, Management accounting, in which he presented a new term of SMA to the public. Many researches have been published on this topic from conceptual to empirical investigations through surveys and case studies (Bromwich, 1990). Today, many textbooks such as Drury (2005) also included SMA as an ordinary subject. Roslender and Hart (2003) observed that SMA is now well accepted by a number of organisations and started to practice in management levels. Management Accounting (MA) acts an important role to SMA. Smith (2005) identified SMA is a newer version of MA, which not only focuses on internal information, but also on external information. Such a development is due to the continuous change of the business environment, especially the raising concern on external information for decision-making. However, Lord (1996) pointed that SMA was “a figment of the academic imagination” while the importance of the existence and the actual role of a management accountant has continue being a controversial issue over time. This paper, the term of SMA will be defined based on previous literature to investigate different views of SMA commentators. From definitions, it will show the development of SMA over the past two decades. Moreover, it is important to discuss the role of management accountants today whether re-focus the effectiveness in strategic management process in the organisations. Additionally, the paper will to explain the relationship between MA and SMA. Review Strategic management accounting (SMA) Development The Previous literature Until

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