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
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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.
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Corporate Finance/Governance
Overlapping with Financial
Management
‘Complex’ Research Topics
National MA approaches
(Kaizen costing, for example)
New Research Opportunities
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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

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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Obsolete Curricula (outdated, too narrow,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

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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

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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.
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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)
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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.