Page 23 - APM Integrated Workbook STUDENT S18-J19

Introduction to strategic management accounting

4.3 Role of management accountant in providing key information to
stakeholders

 The modern management accountant has an important role in preparing reports
and capturing information that will be of interest to the organisation’s
stakeholders.

 As well as economic performance, there are also environmental and social
aspects of performance that need to be considered (the triple bottom line).

 Some companies produce sustainability reports in addition to the traditional
financial report. However, one problem with these is that they may be selective
in only reporting good performance. IR (below) can tackle this problem.

4.4 Integrated Reporting (IR)

What is it?

One report captures the strategic and operational actions of
management in its holistic approach to business and stakeholder
‘wellbeing’.

Role of management accountant in providing performance information for IR

 Management accountant works with top management to integrate financial with
community and stakeholder wellbeing. This is a more strategic view
considering factors that drive long-term performance.

 IR brings statutory reporting closer to the management accountant – they act as
a bridge between stakeholders and the company’s reports.

 Information produced is:

– a balance of quantitative and qualitative; the information system must be
able to capture both financial and non-financial measures

– links past, present and future performance. The forward looking nature
will require more forecasted information

– considers the regulatory impacts on performance

– provides an analysis of the opportunities and risks that could impact the
future

– considers how resources should be best allocated

– is tailored to the specific business situation but remains concise.

13