Current Challenges Driven by the Management Approach (I)

Author:Univ. Professor Costantin ROMAN, Ph. D., Mihaela MOCANU, Ph. D. Student

JEL:M41, M10

DOI:

Keywords:accounting information, management approach, integrated accounting, convergence

Abstract:
The decision-making process of managers is increasingly complex in the current environment characterized by shorter life-cycles of products, increased variety of products and services, rapid technological change, lower predictability of customer preferences and more markets and channels of distributions. Moreover, the increasingly frequent application of financial reporting in accordance with the international financial reporting standards (IFRS) raises debates on the relationship between external accounting (financial accounting) and internal accounting (managerial accounting, controlling, internal reporting). The objective of the present paper is to debate an implicit concept of the IFRS framework, which has not yet received the well-deserved attention in the Romanian academic literature: the so-called „management approach”. The paper presents the main structural differences between „management approach” and the integration (convergence) of internal and external accounting, as well as the advantages and disadvantages of implementing these visions.\r\n\r\n\r\n

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