Current Research Developments in Management Accounting and the (Possible) Implications for Teaching

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Current Research Developments in Management
Accounting and the (Possible) Implications for
Teaching

• Željko Ševic

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Change in Management Accounting

• Kaplan and Johnson (1987) Relevance Lost The
  Rise and Fall of MA
• Failure of MAS to change and develop
• Failure to realise the importance of ICT
• Primate of Financial Accounting

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Global Settings

• Globalisation of Markets
• Advances in ICT and Production Technologies
• Increased competition (price, quality, speed of
  delivery, customer services)

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Micro-Challenges

• Core Competencies (Streamlining)
• Emphasis on customer and supplier relationship(s)
• Downsizing
• Outsourcing
• Flatter organisational structures
• Teamwork

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Response to Challenges

• Johnson (1992) Relevance Regained
• New Techniques
• Activity Based Costing (ABC)
• Activity Based Management (ABM)
• Balanced Scorecard (BSC)
• Economic Value Added (EVA)
• Benchmarking
• Strategic Management Accounting
• TQM
• Nationally specific responses

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Response to Challenges - Contd.(EY and IMA,
2003)

• Life-cycle Costing/Accounting
• Target Costing
• Value Chain Analysis
• Value-based Management
• Multidimensional Costing
• Theory of Constraints
• Supply Chain Costing

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Academic Response

• Action-Based Research
• Practice Relevant Research
• Economics-biased Research
• Neo-classical (Principal Agent Theory, Rational
  Expectations Modelling)
• Institutional (Management Accounting Change,
  Problematisation in MA)

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Academic Response Contd.

• Corporate Finance/Governance
• Overlapping with Financial Management
• Complex Research Topics
• National MA approaches (Kaizen costing, for
  example)

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New Research Opportunities

• Accounting and Law
• Accounting and Public Policy
• Case-study Accounting and non-action Field Work
  Accounting (Applied Accounting Research)
• Robust Multidisciplinary Research in Accounting
  
• Applied Management Accounting (Public Sector,
  Hospitality Industry, Heritage, Arts, etc.)

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Accounting Teaching The State-of-the Art

• Recent (Financial Accounting ) scandals (Enron,
  Xerox, Qwest, WorldCom, etc.)
• Moral Decline (Crisis of (societal) trust)
• Modern Executive Incentive Structures
• Too Prescriptive Accounting Rules
• Obsolete Curricula (outdated, too narrow, too
  specialised, missing link with ICT,
  over-national, rule based, non-exposure to
  ambiguities, lack of creativity, etc.)
• No appreciation for practice and the needs of
  potential employers

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Behavioural ApproachStarting Position

• Ex-cathedra teaching
• Lecture-based delivery
• Examination Coaching (Assessment-driven teaching)
• Rule-based memorising
• Overspecialisation
• Poor appreciation of ICT and innovations

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Constructivist Approach The Future

• Problem-based learning
• Why things are the way they are?
• Emphasising experience
• Searching for alternatives
• Promoting collaborative efforts
• Trying out (new) ideas (Experimenting)
• Revising, revisiting theory (Continuous
  Improvement)

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Research Teaching Interface

• Inclusion of current, especially controversial
  topics (Theory vs. practice)
• Case and field studies (preparation and teaching)
• Hands-on-learning (searching for knowledge,
  individual and group)
• Processes vs. outputs and outcomes (correct
  solution and open-end questions)

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Research Teaching Interface Contd.

• Providing wider social, environmental,
  historical, cultural, etc. context
• Including ethical issues into teaching
• Enabling graduates to be an agent of change
• Ensuring substance over form in accounting
  teaching
• Linking theory and practice, teaching and
  practice (Accounting-style life-long learning)
• Promoting flexible modes of delivery

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KSA (Knowledge, Skills, Abilities)

• Communication abilities
• Ability to work in teams
• Analytical skills
• Solid understanding of accounting
• Knowing (and feeling) how does business work
• Redefining Competencies

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The End

• Thank you very much for your kind attention.