User talk:Ashutosh Kumar Gupta

Ashutosh Kumar Gupta (talk) 13:35, 10 August 2010 (UTC)Management Accounting domain rightfully acknowledged by ICWAI, oflate. In fact CIMA-the largest accounting body in the world was founded as ICWA in 1919 and changed its name as ICMA (Institute of Cost and Management Accountants ) in 1972, further changed its name as CIMA (Chartered Institute of Management Accountants ) in 1986 with the granting of Royal Charter in 1975. Similarly in USA the history of IMA (Institute of Management Accountants) can be traced back to 1919 with the foundation of National Association of Cost Accountants (NACA) in 1919. In Asia too, ICMAP (Institute of Cost and Management Accountants of Pakistan) and The Institute of Cost and Management Accountants of Bangladesh were initially formed as Cost Accounting institutes and adopted the change ahead of ICWAI. On equal footing ICWAI must reincarnate itself as ICMAI (Institute of Cost and Management Accountants of India), not only due to this reason but also in view of the following excerpts from IFAC PAIB COMMITTEE INTERNATIONAL GOOD PRACTICE GUIDANCE: The creation, operation, alteration, and cessation of every action and function in an organization – whether within the private, public, or voluntary sector – all consume economic resources. Measuring, accumulating, and assigning those resources to the organization’s various processes and outputs allows the structure and operation of the organization to be explained, understood, and improved. '''Costing, the accounting term that embraces these processes and expresses them using money as a common language, lies at the heart of managerial accountancy''' and, exercised intelligently, is among the most powerful disciplines available to professional accountants in business (PAIB). Further Management accounting in the words of Robert S. Kaplan, is a system that collects, classifies,summaries, analyses and reports information that will assist managers in their decision makingand control activities. Unlike financial accounting, where the primary emphasis is on reporting outsiders, management accounting focuses on internal planning and control activities. Therefore, management accounting requires the collection, analysis and interpretation not only financial or cost data, but also other data such as sales, price, product demands and measures of physical quantities and capacities. In the process, the system utilises all techniques of financial and cost accounting including marginal or direct costing, standard costing, budgetary control, etc. '''Management accounting therefore appears as the extension of the horizon of cost accounting towards newer areas of management'''.