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Chapter 1
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 as an add on 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.
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
– links past, present and future performance
– considers regulatory impacts on performance
– provides an analysis of factors that could impact the future.
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