Modern principles of management accounting

In the modern economy, accounting is not only a tool for processing financial and economic information, but also acts as the active subject of the implementation of the development strategy of the enterprise or company. That is why its current objectives and principles in the strongest terms differ from occurring, for example, 20 years ago. Modern accounting does much more and much more substantial contents of the function, which makes it a direct factor in the economic well-being of the company.

Management accounting   is a holistic system that includes objectives and principles of managerial accounting, and hardware operation, procedures and resources through which the new functions of financial management: calculation, compilation, accounting, analysis, control, forecasting and others.

The Leading purpose of this system is the continuous management of the balance sheet, its cash flows, resources, assets, and other objects that make up the capital of the company. The most important indicator of the effectiveness of the current model are tasks, which are considered as the final result of the accounting analysis, and principles of managerial accounting.

Tasks of management accounting are:

- research and identify the sources of risks in the enterprise or institution;

- design, implementation and management of pricing policy of the company;

- joint (with marketing and other services) participation in the development of the assortment policy;

is a professional and valid assessment of cost-effectiveness, investments, loans.

The Second fundamental basis is the principles of accounting management accounting, which is the most significant General provisions and requirements for this type of activity.

Consider some of the management accounting principles that determine the economic efficiency of enterprises and companies.

The Principle of reliability comes from the approval of the inadmissibility provision and management of inaccurate and unreliable data and information about the business activities of the company.

The Principle of materiality involves the relationship information for all who are involved in analytical operation in which they are considered as an important objective and defining the nature of accepted management practices and quality of work of entire enterprise.

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The following principles of management accounting, as discretion, require compliance with some caution in the analytical work with data and information, especially when forecasting economic development.

The Principle of dominance of the substance-over-form involves accounting for all phenomena and events business activities in accordance with their legal significance, and on the basis of their economic substance.

The Principle of continuity involves keeping account that the fact that the development of the enterprise or company in the future is accepted a priori.

The Principle of unity of measurement units and procedures of measurement requires the use of standardized methods and procedures for assessing the situation of the enterprise. This approach ensures the comparability of results and possibility of continuous monitoring for it.

The Principle of efficiency implies the need for ongoing assessment of the results of each phase of work and divisions of the company to timely identify trends in its development and the adoption of urgent measures to respond to these trends.

The following principles of management accounting, as the continuity and frequency, put forward the demand of creation of such systems (models), which would allow it to repeat many times in different economic activities and to ensure preventive in preparation for the next phases of accounting.