How to define management accounts

Management accounting

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In the operational context, management accounting (German: internal accounting) has the primary task of converting the socio-economic system "company" with all its components, from employee contributions to assets and rights of use to the most varied of obligations (debts, provisions, etc.) into values ​​for purposes the documentation and the disposition. In this way, accounting serves to reduce information asymmetries that occur both within the company on various hierarchical levels and in the relationship between the surrounding system and the company.

Delimitation of the accounting areas

In the Anglo-American area, the term accounting is used for accounting, which is usually divided into management or cost accounting for internal use and financial accounting for external accounting, depending on the primary target group to be informed. This corresponds to the usual separation of internal and external accounting in German-speaking countries. In the Anglo-American literature in particular, however, the delimitation is not very clear-cut, since, for example, management accounting is also assigned the more comprehensive overall content of corporate accounting, which management can use in a decision-making (decision-facilitating) or behavior-oriented (decision-influencing) manner (Sweeny 1983, pp. 467-468). Recently, this separation has also been discussed in Germany under the heading of integrated or convergent management accounting and proposals for overcoming a result and financial goal-oriented merging of the two main accounting sub-areas with regard to information support for management, the shareholders (shareholder value analysis ) and other stakeholders.

see: Accounting [1]