Welcome to the InfoSci Platform
Design Principles of Profitability Accounting and Accounting for Consistent Financial Management

Design Principles of Profitability Accounting and Accounting for Consistent Financial Management

Ijaz Ali, Raj Bahadur Sharma, Asif Baig, Imran Ahmad Khan
Copyright: © 2022 |Pages: 20
ISBN13: 9781668445952|ISBN10: 1668445956|ISBN13 Softcover: 9781668445969|EISBN13: 9781668445976
DOI: 10.4018/978-1-6684-4595-2.ch001
Cite Chapter Cite Chapter

MLA

Ali, Ijaz, et al. "Design Principles of Profitability Accounting and Accounting for Consistent Financial Management." Perspectives of Management Accounting for Sustainable Business Practices, edited by Ionica Oncioiu, IGI Global, 2022, pp. 1-20. https://doi.org/10.4018/978-1-6684-4595-2.ch001

APA

Ali, I., Sharma, R. B., Baig, A., & Khan, I. A. (2022). Design Principles of Profitability Accounting and Accounting for Consistent Financial Management. In I. Oncioiu (Ed.), Perspectives of Management Accounting for Sustainable Business Practices (pp. 1-20). IGI Global. https://doi.org/10.4018/978-1-6684-4595-2.ch001

Chicago

Ali, Ijaz, et al. "Design Principles of Profitability Accounting and Accounting for Consistent Financial Management." In Perspectives of Management Accounting for Sustainable Business Practices, edited by Ionica Oncioiu, 1-20. Hershey, PA: IGI Global, 2022. https://doi.org/10.4018/978-1-6684-4595-2.ch001

Export Reference

Mendeley
Favorite

Abstract

One of the reasons for the advocacy of consistent financial accounting is the influence of IFRS, which emphasizes the position of investors and considers it important to eliminate the asymmetry of information between investors and management. The accounting treatment is required to harmonize the information that management uses to make management decisions with the financial accounting information disclosed to investors. The part of the decision that is made by the company based on the actual business situation, as referred to in IFRS, is required to be made by management using a method for making management decisions and evaluating business performance. This type of financial accounting (institutional accounting) is what is called the management approach. In the future, the demand from companies for an accounting system that is consistent with financial management is expected to increase. In this chapter, the authors examine the modern significance of profitability accounting from the perspective of the design concept of accounting that is consistent with financial management.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.