Assignment Brief

MBA International Business & Finance

Academic Year 2019-20
Module Information:
Qualification: MBA International Business & Finance

Module Code & Title: MBAIBF 111008 Advanced Performance Management

Assignment Title: Individual Report

Component Weighting: 50%

Date of Issue:05-04-2019 Due date:24-04-2019, 5 PM

To be filled by the student:

Student ID: 5678MBA18

Date of Submission: 24-04-2019

*All work must be submitted on or before the due date. If an extension of time to submit work is required, a Mitigating
Circumstance Form must be submitted.

Has an extension been approved? Yes No

If yes, please provide the new submission date ….…/.…./……., and affix appropriate evidence.

First Marker: Second Marker:

Agreed Mark: Refer: Yes / No

General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment. Use
previous page as your cover sheet and be sure to fill the details correctly.
2. This entire brief should be attached in first before you start answering.
3. All the assignments should be prepared using word processing software.
4. All the assignments should print in A4 sized paper, and make sure to only use one side
printing.
5. Allow 1” margin on each side of the paper. But on the left side you will need to leave room for
binding.
6. Ensure that your assignment is stapled or secured together in a binder of some sort and send
the Softcopy of your final document to assignment.bahons2016@gmail.com
7. The submission of your work assessment should be organized and clearly structured.

Word Processing Rules

1. Use a font type that will make easy for your examiner to read. The font size should be 12
point, and should be in the style of Times New Roman.
2. Use 1.5-line word-processing. Left justify all paragraphs.
3. Ensure that all headings are consistent in terms of size and font style.
4. Use footer function on the word processor to insert Your Student ID, Name, Subject, Module
code, and Page Number on each page. This is useful if individual sheets become detached
for any reason.
5. Use word processing application spell check and grammar check function to help edit your
assignment.
6. Ensure that your printer’s output is of a good quality and that you have enough ink to print
your entire assignment.

Important Points:
1. Check carefully the hand in date and the instructions given with the assignment. Late
submissions will not be accepted.
2. Ensure that you give yourself enough time to complete the assignment by the due date.
3. Don’t leave things such as printing to the last minute – excuses of this nature will not be
accepted for failure to hand in the work on time.
4. A printed version of the assignment needs to be submitted physically along with ansoft
copymailed to the email mentioned above on or before the stated deadline.
5. You must take responsibility for managing your own time effectively.
6. If you are unable to hand in your assignment on time and have valid reasons such as illness,
you may apply (in writing) for an extension.
7. Non-submission of work without valid reasons will lead to an automatic REFERRAL. You will
then be asked to complete an alternative assignment.
8. Take great care that if you use other people’s work or ideas in your assignment, you properly
reference them in your text and any bibliography, otherwise you may be guilty of plagiarism.

Statement of Originality and Student Declaration

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NIRMAL BRITTY JOSEPH – 5678MBA18 Page 2
I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it
as my own without attributing the sources in the correct way. I further understand what it means to
copy another’s work.
1. I know that plagiarism is a punishable offence because it constitutes theft.
2. I understand the plagiarism and copying policy of the University of the West of Scotland.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspect of my program, will be my
own, and where I have made use of another’s work, I will attribute the source in the correct
way.
5. I acknowledge that the attachment of this document signed or not, constitutes my agreement
on it.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: NIRMAL BRITTY JOSEPH Date: 24-04-2019

TASK I

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The role of management accountant today in a computerized environment and challenges in future

Total word Limit: 2500

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INTRODUCTION

For the past two decades the way the accounting data is entered, stored and processed has
changed considerably due to the introduction of computerized accounting software. As
business grows, in today’s environment, the need for computerized accounting arises from
advantages of speed, accuracy and lower cost of handling the business transactions. Due to its
speed and accuracy, it is capable of offering quick and quality reporting. The adoption of
computerized accounting system becomes a necessity in the present environment. The role of
management accountants will be more significant and dominant in present and future
business is concerned with the introduction of computerized accounting system.

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ROLE OF MANAGEMENT ACCOUNTANTS IN COMPUTERIZED
ENVIRONMENT

The management accountant, often referred to as controller, is the manager of accounting

information used in planning, controlling and decision-making areas. A management
accountant is responsible for collecting, processing and reporting information that will help
decision-makers in their planning, controlling and decision-making activities. The role and
responsibility of a management accountant is one of support. Accountants in computerized
environment summarize the results of a firm’s transactions and issue reports to help managers
make informed decisions. The role of accountants has expanded due to the development of
the accounting information of various business sectors, on the one hand, and the increase in
the volume and the complexity of the information. The accountant shall play an active and
effective role in the processes of designing the systems in order to achieve an effective
internal system as well as the needs of accounting information users. Establishing and
developing the system and its success requires the necessity participation of accountants. The
real participation requires that the accountant shall interact mentally and emotionally through
an intellectual debate and consultation with the persons who are responsible for developing
the accounting information system in a manner that encourages them to participate in bearing
the responsibility and contributing to achieve the goals desired.

THE ROLE OF THE ACCOUNTANT

Over the last three decades management accounting has been growing increasingly important
for business management process. This trend makes enterprises lay stronger emphasis on the
functions of controllers or management accountants. The accountants play the following roles
irrespective of the industry they are into. The accountant’s ability to deliver whenever they
are being called upon matters the most.

 According to International Federation of Accountants, a management account is

expected today to provide enterprise managers with decision-making information and
to actively support business management process in the organization.
 Accountants are the first people to live by example for others to follow. Junior
accounting staff members only play the role of users of accounting information
system as they are no privileged to be at the helms of affairs to participate in the
designing stage of information system.

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  The accounting function is the single largest users of information technology. As end
users, accountants must provide a clear picture of their needs to the professionals
who design their systems.
 The accountant’s participation in systems development should be active rather than
passive. Accountants should specify the accounting rules and techniques to be used,
internal control requirements etc.
 Accountants are the major catalyst in the designing of computerized system.
Accountants are the most suitable and most equipped information measurement
professionals to design the information system. The function of designing
computerized system includes the designing of managerial accounting information
system to aid management in decision making process.
 Traditionally, accountants have been responsible for key aspects of the information
system, including assessing the information needs of users, defining the content and
format of output reports, specifying sources of data, selecting the appropriate
accounting rules, and determining the controls necessary to preserve the integrity and
efficiency of the information system. An appreciation of the accountant’s
responsibility for system design requires a historic perspective that predates the
computer as a business information tool.
 The accountant determines the nature of the information required, its sources, its
destination, and the accounting rules that need to be applied.
 Accountants audit the already ‘acclaimed’ accounting information system to ensure
that what is claimed to have been implemented is actually followed.
 A. Szychta stresses that instead of being an analyst working in isolation from the
enterprise management, a management accountant should be, “a pivot point of the
enterprise’s information transmission system”, thus making it easier for the enterprise
to achieve its objectives and to improve its performance on a regular basis (Szychta,
2005).
 The role that R. S. Kaplan (1995) suggests that they should belong to the enterprise’s
value-adding team. He also underlines that management accounting specialists may
be instrumental in developing and implementing business strategies and in
streamlining business processes.
 R. Cooper (1996) suggests that the main function of the controllers would consists in
designing and implementing information systems supporting management
accounting, rather than delivering data and generating reports.
 The management accounting literature ows the term “hybrid accountant” to J. Burns
and R. Scapens (2000). According to authors, todays management accountants are

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 not only “suppliers” of information, but also, to great extent, advisors on the financial
and non-financial impacts of enterprise’s activities and processes. In addition to
having financial and accounting knowledge, “hybrid accountants” possess an
unusually good understanding of the process run in the enterprise and its special
character. These specialists cooperate with process managers while being also
managers, advisors and consultants on a given process.
 A management accounting specialist should be “a pessimistic expert” limiting the
symptoms of ungrounded corporate optimism.
 Management accountant’s roles changed significantly and became more important,
and that they constituted an important link in the information distribution and
enterprise management network.
 To some extent they became partners to managers, who not only ask the controlling
departments for information and analyses the need to make decisions, but also seek
their advice beforehand.
 The management accounting departments played a vital role as advisers and in-house
consultants co-designing the final solutions.

CHALLENGES TO BE FACED BY THE MANAGEMENT ACCOUNTANTS IN THE

FUTURE

The broadening of scope on accounting role and accounting practice has exhibited a marked
degree of continuity since the 18th century, both in management accounting and in accounting
practice. The successful next-gen accountants can be defined by, how accountants adapt to
the use of technology and cater to requirements for information, big data analytics and
forecasting. The risk of fraud and cybercrime are unprecedented with an increasingly
connected world. Increased regulation and stronger governance, with increased globalization,
will significantly impact the profession. The challenges will require future accountants to
embrace technology in order to create space to collaborate and partner the business; interpret
the numbers; provide insight and become more involved in decision-making.

 A challenging landscape for future accountants is the development of intelligent

automated accounting systems. Thus, knowledge and skills developed assiduously
over the years by aspiring accountants are increasingly obsolete and carried out by
automated “smart” systems.

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  Failure to address the grand scale reinvention will run the real risk of management
accounting becoming a marginalised discipline – deskilled, decentralised, and
ultimately disappearing.
 Management accountants must face up to the demands and challenges of more
directly contributing to the decision process as a value adding business partner. For
this, the reinvented management accountant needs a more broadly developed
knowledge base including areas such as operations, product and process technology,
systems, marketing and strategic management.
 Management accountant’s focus must be switched from historical stewardship to
strategic planning and feed forward control.
 The new world that beckons management accountants call for their reskilling and
contribution to strategic management, knowledge management, risk management,
environmental management and change management.
 The increasing use of internet-based systems and the cloud, online transactions, the
requirement for flexibility and use of multiple communication devices bring along
with them an unprecedented rise in cybercrime and hacking. In this circumstance,
accountants must remember their core responsibility of safeguarding a company’s
assets and should ensure adequate controls and design of processes to mitigate risk.
 The future accountant will need to keep abreast and ensure compliance with ever-
increasing regulation and government requirements.
 Due to the continued globalization, professional accountants will need to anticipate
and accommodate emerging differences in business practices, geographies, roles,
responsibilities and regulation and to develop the necessary technical knowledge,
skills, ethics, in addition to displaying interpersonal behaviours and qualities.
 Accountants will need to be sensitive to cultural diversity.

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CONCLUSION

Many traditional functions of accountants will get replaced by the increase in automation and
the use of smart accounting systems. In order to succeed in the new environment future
accountants must reinvent their role as business advisors, embrace technology and master
new knowledge and skills. Knowledge of digital technologies, big data analytics and
designing of controls against cyber-crime will be paramount. The key determinants of success
of the future accountant will be communication skills and development of the professional
quotients, vision, creativity, emotional intelligence, together with strong ethical
competencies. The reinvented management accountant can emerge in a possibly rebranded
guise to take on the value adding, knowledge based, decision leadership roles being sought by
today’s organization with their armed strategic, analytical, technological, leadership and
communication skills.

If management accountants are not adapting and seizing their opportunities, the opportunities
will go to the emerging groups of competing professional specialists. The speed of
automation of accounting functions constitutes the biggest challenges to the accounting
professionals.

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REFERENCES

 www.yourarticlelibrary.com,
https://www.yourarticlelibrary.com/accounting/management-accounting/management-
accountant-status-and-functions/52469, 20 April, 2019
 bepls.com, bepls.com>beplsoctober2015, 20 April, 2019
 www.papers.ssrn.com, https://papers.ssrn.com/sol3/papers.cfm?abstract-id=1788032,
21 April, 2019
 Infomate, https://www-infomateworld-
com.cdn.ampproject.org/v/s/www.infomateworld.com/blog-posts/challenges-for-
accountants-and-the-future-skill-required/amp/?amp-js-v=a2&amp-
gsa=1&usqp=mq331AQCCAE%3D#referrer=https%3A%2F
%2Fwww.google.com&amp-tf=From%20%251%24s&ampshare=https%3A%2F
%2Fwww.infomateworld.com%2Fblog-posts%2Fchallenges-for-accountants-and-the-
future-skill-required%2F, April 21, 2019
 Burns J., Scapens R. w. (2000), The changing nature of management accountants and
the emergence of “Hybrid” accountants, IFAC in the News & Video Library,
www.ifac.org/Library/November., status as on 15 September, 2011
 Cooper R. (1996), Look out, management accountants, ‘Management Accounting’,
June, pp.35-41
 Szychta A. (2005), Rola wspótczesnych specjalistód do spraw rachunkowości
zarządczej w świetle ewolucji jej zakresu I metod, ‘zeszyty Teoretyczne
Rachunkowości’, 25(81), pp.80-107

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