BASIC CONSIDERATIONS IN MAS

MANAGEMENT CONSULTANCY
Services are rendered on behalf of the management.
Involves problem-solving.
Relates to future.
Human relations play a vital role.
Engagement requires a highly qualified staff.
Broad in scope.
Involves varied assignments.
Engagement is non-recurring.

FEES
CONSULTANT MANAGEMENT
ADVICE
*Outsourced Professional *Client

PROFESSIONAL ATTRIBUTES:
✓ Technical Skills
✓ Interpersonal Skills
✓ Consultancy Skills

MANAGEMENT ACCOUNTING
MANAGEMENT
- The process of PLANNING, DIRECTNG, ORGANIZING, & CONTROLLING the activities of an organization to
reach its objectives.

PLANNING- goal-setting
ORGANIZING/DIRECTING- tackling activities
CONTROLLING- performance evaluation (Actual vs. Planned)
DECISION-MAKING-

FINANCIAL ACCOUNTING vs. MANAGEMENT ACCOUNTING

FINANCIAL ACCOUNTING MANAGEMENT
ACCOUNTING
1. Restrictive guidelines PFRS/PAS/GAAP NONE
2. Users of information Primarily External Exclusively External
(Special Purpose Financial
Statements)
3. Type of information Financial Financial & Nonfinancial
4. Emphasis of reporting Reliability (Precision) Relevance (Timeliness)
5. Source of information Internal Internal & External
6. Focus of analysis Business/Company as a Segments/Division
whole (SUMMARIZED) (DETAILED)
7. Frequency of reporting PERIODICAL Whenever needed
8. Time orientation Past/Historical Future-oriented
LINE vs. STAFF

persons DIRECTLY involved in provides ASSISTANCE to the Line function.

achieving the goals &
objective.
✓ MARKETING
✓ OPERATIONS
✓ PRODUCTION
✓ SALES

CONTROLLER vs. TREASURER

CONTROLLER
1. Reporting of FS
2. Government reporting
3. Tax compliance
4. Audit
5. Planning for control
6. Economic appraisal
TREASURER
1. Credit collection
2. Provision of capital
3. Investment (Risk
management)
4. Investor relations

ETHICAL STANDARDS (IMA)

✓ Competence
✓ Integrity
✓ Confidentiality
✓ Objectivity

GLOBAL TRENDS IN MANAGEMENT ACCOUNTING

DIKW Pyramid
WISDOM

KNOWLEDGE

INFORMATION
4 W’s (What, When, Who, Why)

DATA

MANAGEMENT INFORMATION SYSTEM (ACCOUNTING)

INPUT PROCESS OUTPUT STORAGE CONTROL