The competitive environment for companies is steadily becoming more challenging and demanding. Large planned company take-overs as recently announced from multinational corporations like for instance MITTAL STEEL or E.ON AG indicate the demand for more sophisticated and advanced management accounting information in order to react properly on the external market pressures worldwide. Multinational companies regularly have to cope with different institutional environments, management practices, techniques as well as cultural understandings between the respective countries.
While in this context the field of financial accounting has already attracted much attention from the academic world on a comparative nationwide level, the area of internal management accounting has largely been a concern of approaches focussing on single countries only. These approaches have been analysed by national academic scholars and as a consequence also influenced the practices in other countries. However, in order to initiate a discussion and to highlight best practices, novelties and inefficiencies in the management accounting world, a sophisticated comparison drawing on the differences and similarities in the observed countries has only recently been conducted in the management accounting literature.
Furthermore, different labels, in different languages, are used to refer to management accounting around the world. The relatively young discipline of comparative management accounting tries to fill this gap in management accounting research by determining the degree of diffusion of applied concepts and practices in different countries.
The present paper analyses the different characteristics of management accounting in Germany, the United Kingdom (U.K.) and the United States of America (U.S.).
The paper is organized as follows. Chapter 1.2 explains the choice of the selected countries and the methodological proceeding. Afterwards, chapter 2 introduces the general concept of comparative management accounting and reviews the current academic literature. Based on the terminological specification of nationwide diverging definitions of management accounting labels, the following chapter 3 describes and compares the main aspects and characteristics of management accounting in Germany, the U.S. and the U.K. Chapter 4 discusses current developments in management accounting. Finally, the concluding chapter 5 summarizes the findings.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Motivation and goals of this study
- Methodological explanation
- Principles of comparative management accounting
- Comparative management accounting
- Management accounting versus controlling
- Management accounting terminology and definitions in the U.S. and the U.K.
- Management accounting terminology and definitions in Germany
- Determinants and factors of influence for differences in management accounting
- Culture as influence factor in management accounting
- Education, occupation and institutions of management accountants as influencing factors
- Economic background as influence factor
- Other potential determinants and factors of influence
- Concluding remarks concerning divergence versus convergence of management accounting
- Literature review
- Comparison of relevant management accounting aspects
- Tasks and objectives of management accounting
- Objectives and target groups of management accounting
- Long-term versus short-term goals
- Management accounting versus financial accounting
- Fields of activity for management accountants
- Tasks of management accountants
- Management accounting systems and instruments
- General ledger versus two circle system
- Management accounting instruments
- Organisational integration of management accountants in the corporation
- Hierarchical level of management accountants within the corporation
- Interrelations and connections to adjacent departments
- Organisational connection to the finance department
- Organisational connection to the cost accounting department
- Regional separation of financial and management accounting departments
- Size of management accounting departments
- Role of the Controller in the observed countries
- Role of management accountants in Germany
- Role of management accountants in the U.K. and the U.S.
- National variations in management accounting terminology and definitions
- Cultural and institutional influences on management accounting practices
- The role of management accountants in different organizational contexts
- Convergence and divergence trends in management accounting practices
- The impact of international accounting standards on national management accounting systems
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The primary objective of this paper is to analyze and compare the characteristics of management accounting practices in Germany, the United Kingdom, and the United States. It seeks to highlight differences in approach, identify potential drivers of convergence or divergence, and explore the influence of cultural, institutional, and economic factors. The study also aims to examine how current developments in management accounting are shaping future practices in these countries.
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the motivation and goals of the study, focusing on the need for a comparative analysis of management accounting practices in different countries. It also provides a methodological explanation for the selection of Germany, the United Kingdom, and the United States as the target countries. The second chapter explores the fundamental principles of comparative management accounting, examining the different terminologies and definitions used in the three countries. It also analyzes the key determinants and factors influencing variations in management accounting, including culture, education, occupation, and economic conditions.
The third chapter delves into a detailed comparison of relevant management accounting aspects in Germany, the United Kingdom, and the United States. It examines differences and similarities in the tasks and objectives of management accounting, including the target groups, the long-term versus short-term goals, and the relationship between management accounting and financial accounting. It also compares the respective management accounting systems and instruments used, such as the general ledger versus two circle system, and the application of Activity Based Costing (ABC). Finally, this chapter analyzes the organizational integration of management accountants in the corporation, examining their hierarchical level, interrelations with adjacent departments, and the size of their departments.
The fourth chapter discusses current developments in international management accounting, focusing on the approachment of management accounting and financial accounting in Germany. It examines the increasing implementation of international accounting standards, such as IFRS and US-GAAP, and the resulting trends towards a harmonization of internal and external accounting. The chapter also explores the potential influence of German management accounting on Anglo-Saxon practices.
Schlüsselwörter (Keywords)
This study focuses on the key concepts of comparative management accounting, examining the differences and similarities in management accounting practices between Germany, the United Kingdom, and the United States. Key themes include the impact of cultural influences, the role of professional institutes, the importance of management accounting instruments like ABC, and the convergence and divergence trends in management accounting practices. It also explores the influence of international accounting standards, such as IFRS and US-GAAP, on national management accounting systems.
- Arbeit zitieren
- René Stienemann (Autor:in), 2006, Comparative Management Accounting, München, GRIN Verlag, https://www.grin.com/document/83026
