Current Research Developments in Management Accounting and the (Possible) Implications for Teaching Željko Šević Change in Management Accounting Kaplan and Johnson (1987) Relevance Lost: The Rise and Fall of MA Failure of MAS to change and develop Failure to realise the importance of ICT Primate of Financial Accounting Global Settings Globalisation of Markets Advances in ICT and Production Technologies Increased competition (price, quality, speed of delivery, customer services) Micro-Challenges Core Competencies (Streamlining) Emphasis on customer and supplier relationship(s) Downsizing Outsourcing Flatter organisational structures Teamwork Response to Challenges Johnson (1992) Relevance Regained: New Techniques: Activity Based Costing (ABC) Activity Based Management (ABM) Balanced Scorecard (BSC) Economic Value Added (EVA) Benchmarking Strategic Management Accounting ‘TQM’ Nationally specific responses Response to Challenges - Cont’d. (E&Y and IMA, 2003) Life-cycle Costing/Accounting Target Costing Value Chain Analysis Value-based Management Multidimensional Costing Theory of Constraints Supply Chain Costing Academic Response Action-Based Research Practice Relevant Research Economics-biased Research Neo-classical (Principal Agent Theory, Rational Expectations – Modelling) Institutional (Management Accounting Change, ‘Problematisation’ in MA) Academic Response –Cont’d. Corporate Finance/Governance Overlapping with Financial Management ‘Complex’ Research Topics National MA approaches (Kaizen costing, for example) New Research Opportunities Accounting and Law Accounting and Public Policy Case-study Accounting and nonaction Field Work Accounting (‘Applied Accounting Research’) ‘Robust’ Multidisciplinary Research in Accounting ‘Applied’ Management Accounting (Public Sector, Hospitality Industry, Heritage, Arts, etc.) Accounting Teaching: The Stateof-the Art Recent (Financial Accounting ) scandals (Enron, Xerox, Qwest, WorldCom, etc.) Moral Decline (Crisis of (societal) trust) Modern Executive Incentive Structures Too Prescriptive Accounting Rules Obsolete Curricula (outdated, too narrow, too specialised, missing link with ICT, overnational, rule based, non-exposure to ambiguities, lack of creativity, etc.) No appreciation for practice and the needs of potential employers Behavioural Approach: Starting Position Ex-cathedra teaching Lecture-based delivery Examination Coaching (Assessment-driven teaching) Rule-based memorising Overspecialisation Poor appreciation of ICT and innovations Constructivist Approach: The Future Problem-based learning Why things are the way they are? Emphasising experience Searching for alternatives Promoting collaborative efforts Trying out (new) ideas (Experimenting) Revising, revisiting theory (‘Continuous Improvement’) Research & Teaching Interface – Cont’d. Providing wider social, environmental, historical, cultural, etc. context Including ethical issues into teaching Enabling graduates to be an agent of change Ensuring ‘substance over form’ in accounting teaching Linking theory and practice, teaching and practice (Accounting-style life-long learning) Promoting flexible modes of delivery ‘KSA’ (Knowledge, Skills, Abilities) Communication abilities Ability to work in teams Analytical skills Solid understanding of accounting Knowing (and feeling) how does business work *Redefining Competencies* The End Thank you very much for your kind attention.