KUMPULAN ARTIKEL BAHASA INGGRIS TENTANG EKONOMI FINANSIAL

PAPER ACCOUNTING FINANCIAL MANAGEMENT AND ACCOUNTING

DEFINITION OF MANAGEMENT ACCOUNTING AND FINANCIAL ACCOUNTING
Accounting management is the discipline with respect to the use of accounting information by management and other internal parties for the purposes of product costing, planning, control and evaluation, and decision making. The common instructional goals of this course is the students are expected to evaluate and manipulate the management accounting system that matches the operating conditions and strategy of the organization.

Financial accounting is part of the accounting related to the preparation of financial statements for external parties, such as shareholders, creditors, suppliers, and government. The main principle used in financial accounting is the accounting equation (Assets = Liabilities + Equity). Financial accounting problems associated with recording transactions for a company or organization and preparation of periodic reports on the results of the record. This report is prepared for general interest and is typically used to assess the achievements of the company owner or manager of manager used as financial accountability to shareholders. The important thing is the existence of financial accounting Financial Accounting Standards (IFRSs) which are the rules that must be used in the measurement and presentation of financial statements for external stakeholders. Thus, expected users and compilers of the financial statements can communicate through the financial statements, because they use the same reference, namely SAK. The SAK began to be implemented in Indonesia in 1994, replacing the principles of Indonesia Accounting 1984. (Wikipedia)

HISTORY OF MANAGEMENT ACCOUNTING

In the 1880s, American manufacturing company began to concentrate in the development of large-capacity production technology. The managers and engineers at the metal company has developed a procedure to calculate the cost of the relevant product called scientific management. This procedure is used to analyze the productivity and profit of a product. However, as the development of accounting thought so after the procedure in 1914 began to disappear from the company's accounting practices.

After World War I, there is a financial accounting rules that have reduced the impact of accounting information useful for evaluating the performance of subordinates in large companies (lost relevance). Until 1920, all managers believe the information related to primary production processes, transactions and events which result in a nominal amount in the financial statements. After 1925, the information is used by managers to be more simple and a lot of manufacturing companies in the U.S. have developed management accounting procedures as it is known today.

During a period of more than sixty years, accounting academics trying to restore the relevance of accounting information rooming with financial accounting information. The attempt to use a simple model of manufacturing companies, similar to the 19th century textile company, and in order to address the problem of production, academics reorder inventory kos reporting information. Nevertheless, the model is too simple to explain the real problems faced by managers but it how the information in order to facilitate boarding derived from the financial statements can be made relevant to the decision-making (management kos).

Beginning in the 1980s to the present, management accounting experience a period of rapid growth with its role as a chaperone financial accounting.

Johnson and Kaplan write beautifully in "Relevance Lost: The Rise and Fall of Management Accounting". Book a decent enough read to understand about management accounting.

CRISIS MANAGEMENT IN ACCOUNTING

Bob and Tom Eiler Cucuzza

Over the past few months, the accounting profession and experienced the major changes, which mostly focuses on the performance and financial accounting issues (such as financial accounting rules are complex, ethical aspects of the profession, and so on). While we are taking in the journal argued that the crisis in management accounting as great as the crisis in financial accounting. It can be concluded with regard to the crisis management accounting is:

A. FROM FACTORS users

In traditional management accounting focuses on providing only to internal users such as factories, division, or the company's internal environment and do not follow the company's economic expansion, especially in the external part of the business consisting of supplies, joint ventures, and other special purpose company. Along with the global demands more attention focused on the ability of management accounting to measure and evaluate internal and external areas of the company to optimize the decisions to be taken by external parties. The parties are:

1. Internal party

Internal parties are parties that are in the organizational structure. Management is the most in need of proper accounting statements and inaccurate to make good decisions and correct. Examples such as managers who see the financial position of the company to decide whether to buy a building for a new branch office or not.

2. External parties

a. Investor

Investors require a company's financial information to determine whether to invest or not. If the predictions of the investor will benefit from the good, then the investor will deposit capital into the company, and vice versa.

b. Shareholders / owners of the company

The owner of a company that has a part share financial information companies need to be able to determine the extent of progress or setbacks experienced by the company. Shareholders will benefit from the dividends that will be even greater if the company huge profits.

c. Government

The amount of tax to be paid by the company or organization to the government of a large part based on the information in the financial statements of the company.

d. Creditors

If the company is desperate and in need of fresh capital the company may borrow money to creditors such as borrowing money in the bank, owes goods on supplyer / suppliers. Creditors will provide funds if the company has a good financial condition and will not have a great potential for loss.

e. Other Parties

Actually there are many other parties from outside companies that may be using report / accounting information of an organization such as employees, unions, public accounting auditors, police, school / college students, journalists, and many others.

B. FACTORS OF RESTRICTIONS ON INPUT AND PROCESS

Management accounting does not depend on accounting principles. SEC and FASB sets accounting procedures that must be followed to report and prosess of financial accounting should be clear and limited. Only certain economic activities that qualify as inputs and processes, should follow the method accepted by the public. Unlike financial accounting, management accounting does not have a special institution set the format, content, rules in selecting inputs and processes, and the preparation of financial statements. Managers are free to choose whatever information they want- can be justified on the basis of cost-analysis (cost-benefit analysis).

Today the conventional charging is becoming obsolete and switch to the imposition of activity-based costing / activity-based costing system (ABC-system). In the development of management accounting a lot of contemporary issues in management techniques were adopted, such as the method of just-in-time (JIT), total quality management (TQM), target costing, and customer orientation.

Performance assessment manager is starting to shift. If the first assess the performance of a manager is quite simply from a financial perspective, but now to get a more comprehensive picture of the two perspectives should be known as the balanced scorecard. Performance assessment will be carried out from two sides, namely financial (financial) and non-financial such as assessment / customer, learning and growth, and internal business processes.

Balanced scorecard is the latest issues in management accounting. Balanced scorecard is a strategic management system that describes an organization's mission and strategy into operational objectives and performance measures for four different perspectives, namely financial perspective, customer perspective, internal business perspective, and learning and growth.

C. TYPES OF INFORMATION

Types of management accounting information:

Management accounting information can be attributed to three things, namely the object information (product, department, activity), an alternative will be chosen, and the authority of the manager. Therefore, management accounting information is divided into three types of information:

1. Full Accounting Information (Full Accounting Information).

Full accounting information includes information both past and future information. Full accounting information which contains the past information useful for reporting financial information to the top management and outside parties, analysis of the ability to generate profits, giving an answer to the question "how much money is spent on something", and determining the selling price in the cost type contract.

Full accounting information which contains the future information useful for the preparation of the program, the determination of the normal selling price, transfer pricing, and determining the selling price set by the government.

2. Accounting Information Differential (Differential Accounting Information).

Differential accounting information is the estimated difference of assets, income, and / or costs in the other action alternatives. Differential accounting information has two main elements, which is the future of information and differences between the alternatives faced by decision makers. Differential accounting information is only concerned with the cost of so-called cost differential (differential costs), which is only concerned with the so-called revenue income differential (differential revenue), and is concerned with the so-called asset assets differential (differential assets).

3. Accounting Information Responsibility (Responsibility Accounting)

Responsibility accounting information is information assets, income, and / or costs associated with the manager who is responsible for a particular responsibility center. Responsibility accounting information is information that is important in the management control process because the information stresses the relationship between financial information to managers who are responsible for planning and implementation. Responsibility accounting information is thus a basis for analyzing the performance of managers and also to motivate managers to carry out their plans as outlined in their respective budgets.

Management accounting information system is not bound by any formal criteria that describes the nature of the input, process and output. These criteria are flexible and based on management objectives to be achieved.

The general objective of management accounting systems:  Provide the information required in the calculation of the cost of services, products, and other objects of interest management.
Provide information that is used in planning, control, evaluation, and continuous improvement. Provide information for decision making. Management accounting information can help identify a problem, solve problems, and evaluate performance. Thus, management accounting information is needed and used in all, including planning, controlling, and decision making.

Financial Accounting Information

Financial accounting information is aimed at the general information (general purposes) are presented in accordance with Accounting Principles Thanking General (GAAP). This information is used for internal and external parties. Accounting information is presented with the assumption that the information required of investors, creditors, potential investors and creditors, management, government, and so can represent anyone other than the information needs of investors and creditors. Thus it takes a uniform information to all interested parties with the company's business. In general, the Financial Accounting information is compiled and reported periodically so it can not meet the needs of management for timely information. In addition, the Financial Accounting information is presented in a format that is too stiff making it less able to meet the information management needs.

According to Statement of Financial Accounting (SFAC) No.. 2 Qualitative characteristics of financial information is as follows:

1. Relevant point is that the information capacity could push a decision when utilized by the user to predict the outcome of interest in the future based on past and current events. There are three main characteristics, namely:

Timeliness (timeliness), that information is ready to be used by users before it loses meaning and capacity in decision-making.  Predictive value (predictive value), that information can help users in making predictions about the outcome of events past, present and future.
 Feedback (feedback value), the quality of information that the user can confirm the expectations has happened in the past.

2. Reliable, meaning the quality of information that is free of errors and irregularities or bias and has been properly assessed and presented in accordance with its objectives. Reliable has three main characteristics, namely:

Can be checked (veriviability), the consensus in the choice of accounting measurement that can be assessed through its ability to ensure that the information presented is based on whether a particular method gives the same results when verified by the same method by an independent party.
    Honesty representation (representation faithfulness), is a match between the figures and descriptions as well sources. Neutrality (neutrality), a neutral financial information intended for the general needs of the users and in spite of certain assumptions about the needs and desires of the users specific information.

3. Power of Appeals (comparability), the financial information that can be compared to present the similarities and differences that arise from the basic similarities and differences in corporate and transaction basis and not solely from differences in accounting treatment.
4. Consistency (consistency), the uniformity in determining policies and accounting procedures that do not change from period to period.

D. ORIENTATION TIME

Financial accounting over the past tended to orientation and reported after the incident occurred. Although management accounting also recorded and reported after the incident took place. This strongly confirms the provision of information. Management, for example, do not just want to know how much it costs to production processes, but also want to know what are the costs to be incurred to produce a product. By knowing what it will be used for a production that can help plan the purchase of raw materials and pricing, as well as other things. Future orientation is used to support managerial planning and decision-making.

In this article many critics say that management accounting has become short-term oriented. A company requires the truth of information to effectively measure the performance of the company, therefore the balance scorecard should not only be one report that describes what is happening but it should be based on the variability of the key factors affecting the economic performance of the company in the future. And companies often do not report internally to understand the overall long-term corporate goals. So there is no picture of the entire company, which in turn led to a crisis in management accounting

E. LEVEL AGGREGATION

Management accounting and provides a measure of internal reports that are used to evaluate the performance of the company, product lines, departments, and managers. The bottom line is very detailed in the information needed and provided. Financial accounting on the other hand focuses on overall company performance and provide a more aggregate perspective.
There are several stages in the internal performance measures:

important as financial accounting, management accounting as the future-oriented and do not affect outsiders. Decisions taken at akmen only based on estimated information (approximate or observations), without looking at it first reality is actually happening. Therefore, decisions must be taken quickly as the actions to be taken from the results of observations obtained. In other words, the actions taken in the form of preventive measures. Namely, trying to gauge what will happen in the future in the short term, responding with hope of producing greater profits.

CONCLUSION
There are several issues facing the professions. Requires management accounting information is correct for effective performance measurement. Management accounting should be prepared to provide the whole picture of the company management.