The impact of enterprise resource planning systems on management accounting : an Australian study

Information technology is significantly changing the operating practices of an increasing number of companies globally. These developments have important implications for the accounting profession and in particular accounting practices in the twenty-first century. This study examines the development of enterprise resource planning (ERP) systems as a means of illustrating how changes in information technology allows all systems in a company to be linked to manage operations holistically.

The study investigates the change in accounting systems using a sample of Australian companies with emphasis on the adoption of ERP systems including the potential impact of ERP on capital budgeting processes. The results show that ERP systems are changing management accounting practices, although at this stage, the impact on capital budgeting techniques appears to be limited. The findings contribute to the emerging body of literature on the development of ERP systems and its impact on management accounting teaching and research.

The transfer of management accounting practices from London counting houses to the British North American fur trade

During the late eighteenth and early nineteenth centuries management accounting practices were transferred from London counting houses to the British North American fur trade. This transfer involved a set of practices that was more effective for implementing the strategy being pursued at the time than the set used with the previous strategy. London counting houses had developed management accounting practices to facilitate their backward integration strategies with America and the West Indies. Pivotal to this development was the requirement for sub-unit accountability and responsibility.

A survey of management accounting practices in South Africa

This paper reports on a survey of management accounting practices in 52 South African firms. The survey was conducted in 2001 between January and April. The changes that have taken place in the field of management accounting and the factors that may have prompted management accounting change are also documented. Our findings indicate an increased use of most of the management accounting practices advocated in management accounting literature, in the sampled firms. Modern management accounting techniques such as activity based costing and balanced scorecard type performance measures are used together with the traditional management techniques such as budgeting and standard costing. Further, our survey revealed a significant change occurring in management accounting practices in South Africa in recent years. Such a change is mainly attributed to the opening up of the South African economy in the early 1990s.

Power and politics and their interrelationship with management accounting change

The issue of organizational change has assumed central importance in business- and management-related research during the last two decades. The management literature also well documents the significance of power and politics in organizational change, and its implication at various hierarchical levels of an organization. Surprisingly, the management accounting literature boasts little work on power and politics, and its interrelationship with management accounting change process. The aim of this paper is to discuss the role of power and politics in organizational change, with direct implications for knowledge of management accounting change.

Pick, mix or match? A discussion of theories for management accounting research

This paper presents a review on applications of four types of theories for management accounting (MA) research (contingency theory, agency theory, sociological theories and psychological theories) and comments on prospects of combining multiple theories in future MA research. Based on a review of studies that adopted the four types of theories, the authors argue that multiple theories can be applied jointly in future research to enrich our understandings on MA practices from multiple perspectives. However, theories should maintain their distinctiveness in their applications. Blending multiple theories into a single all-purpose theory can be counterproductive due to loss of explanatory power.

Relevance of traditional management accounting in the public sector

 The major reforms that the Australian public sector went through in the early 1980s were characterised by a stress on efficiency and effectiveness. The reforms led to the import of a private sector mangement philosophy to the public sector, including private sector based management accounting techniques. It is this import that motivated the critical theoretical discussion presented in this paper concerning the applicability of traditional private sector management accounting techniques in the public sector. The paper sets out the pros and cons of such application and provides directions for future research.

Societal role expectations of management accounting professionals: an Australian study

Purpose This paper seeks to advance the understanding of the relevance of management accounting (MA) as a profession by examining societal role expectations of MA professionals in Australia.Methodology/approach The study presented in this paper is based on a questionnaire survey.Findings Findings of the study show that Australian MA professionals are expected to have skills in cost management, corporate social responsibility, carbon accounting, risk management, business analysis, corporate governance, and asset valuations. The demand of MA professionals exceeded the pool of MA talents in Australia. The role expectations of MA professionals from different stakeholder groups are fairly consistent.Social implications The study adds to the immigration institution discussion by demonstrating that there are inadequate professionals in Australia with the skills and experience in MA to meet the projected demand. Australia has very little option but to fill the supply-side shortfall in the short-term with overseas MA professionals.Originality/value The study adds to the literature of the societal relevance of MA by providing evidence of an increasing demand for MA skills in Australia.