What are the implications of the separation of investor and manager functions for modern accounting

Modern accounting refers to the information control system that provides and controls financial information to make it fit for purpose. This control system integrates the two branches of modern accounting, which not only reflects the objective authenticity of financial accounting information, but also expresses the relevance and rationality of management accounting information, so as to unify the two information categories of financial accounting and management accounting, and play the role of accounting function more effectively. What is the essence of accounting?

There are many opinions about it. One of the more popular views is that "accounting is an information system".

If accounting is defined as an "information system", then it needs to solve the problem of the subject's (such as investors) understanding the uncertainty of the object (such as the financial status and business results of the enterprise) and the problem of making the information "true". In fact, modern accounting should not only solve the problems that should be solved by the "information system", but also further solve the problem of guaranteeing and realizing the certainty of the subject to the object, and at the same time, it must also actively "interfere" with the output accounting information in accordance with the requirements of the goal, so that it meets the requirements of planning and decision-making. This is the role of a control system is self-evident, the function of the accounting information control system is to provide objective, relevant, and desirable accounting information for external and internal information users.

1. Analytical function.

The analytical function is an important function of management accounting. It refers to the post-mortem analysis of managerial accounting's involvement in economic activities. Conduct a post-mortem analysis.

2. Functions.

In the process of management accounting, historical data is mainly used, and through the scientific processing and sorting of these historical data, the development and change of future economic activities can be carried out, so as to reduce the blindness in the decision-making of enterprise management.

3. Decision-making function.

Decision-making is an important function of management accounting. The right decision is related to the success or failure of an enterprise. Management accounting is the selection of the optimal solution through the use of various scientific decision-making methods.

4. Planning functions.

The main task is to prepare the plans correctly, that is, to implement a comprehensive budget. A comprehensive budget is the concretization of management decisions. In order to achieve various indicators, management accounting work should be arranged for a long time and a short time, and the plan indicators should be decomposed layer by layer and implemented to various departments to form a responsibility budget system, so as to facilitate effective control and assessment.

5. Control functions.

The control function is to correct deviations in the implementation of the budget according to the completion of the overall budget, and ultimately ensure the achievement of the budget objectives.

6. Assessment function.

The implementation of responsibility accounting and regular assessment is another basic function of management accounting.

Generally speaking, the basic content of management accounting includes analysis, decision analysis, overall budgeting, cost control and responsibility accounting. Among them, the first two contents are combined and called ** decision accounting; The consolidation of comprehensive budgeting and cost control is known as planning control accounting.

**Decision accounting, planning control accounting and responsibility accounting are relatively independent and complementary to each other. The above three can be further combined, which can be divided into two parts: "planning and decision accounting" and "control and performance evaluation accounting".

The functional role of modern management accounting has been organically combined from the simple accounting of financial accounting to the analysis of the past, the control of the present, and the planning of the future.

The basic functions of management accounting include:

The functions of management accounting mainly include organizational functions, planning functions, control functions, and evaluation functions

First, organizational functions. Its functions are mainly manifested in designing and formulating a reasonable and effective responsibility accounting system and the handling procedures of various specific accounting work according to the actual situation of the enterprise. In order to allocate and use limited resources such as human, material, and financial resources*3.

Second, the planning function. Its function is mainly manifested in the function of management accounting in the enterprise to plan business objectives, and the realization of its function is mainly determined through the preparation of various budgets and plans. It should break down the relevant economic targets into each relevant budget on the basis of the final decision.

Third, control functions. Specifically, it organically combines the ex-ante control and in-process control of the economic process of the enterprise, according to the scientific and feasible standards determined in advance, as well as the analysis of the reasons for the deviation between the actual situation and the initial plan in the implementation process. Corresponding measures can be taken in a timely manner.

Fourth, the evaluation function. Its function is mainly to evaluate and evaluate the business performance of the enterprise. It is mainly embodied in the fact that according to the performance report prepared by each responsible unit on a regular basis, the actual number of occurrences and the budget are compared and analyzed to evaluate and evaluate the performance of each responsible unit, so as to reward attendance and punish laziness, reward the good and punish the inferior, correctly handle the distribution relationship, and ensure the implementation of the economic responsibility system.

The basic functions of management accounting include:

1) Provide objective and reliable information for decision-making.

The decision-making of enterprises can be divided into two types of decision-making: short-term and long-term.

The short-term analysis of the internal accounting of the enterprise, the management accounting draws on the concept of microeconomics, adopts the analysis principles of one quantity and one profit, difference and increment, analyzes and compares the relevant costs and revenues that affect the profits of the enterprise, and provides an effective guarantee for the short-term decision-making and abnormal aspects in the business process of the enterprise.

Management accounting analyzes and collects cash flows based on time value, and examines and analyzes the role of time value on cash flow, and obtains the impact of relevant factors on cash flow, so as to make reasonable annotations for long-term investment decisions.

2) Formulate a plan and prepare a budget.

Only careful planning and control can achieve the chosen goals and make the decision-making plan more perfect. Control can be implemented, and the most important thing is to do it through the budget, which can maximize the economic benefits that the enterprise wants to achieve in the future with the quantified data.

This requires management accounting to refine the work and objectives, specific to each key link, management accounting with data comparison, timely find out the deviation of the data, find out the causes, such as factor analysis, the most influential factors to effectively control, and timely communication to make it implement, so that the plan and budget to achieve the final implementation of each step and goal of the program.

3) Guide the operation and implement control.

The achievement of decision-making objectives and the implementation of the budget depend on the control of the actual implementation of the plan and budget. Management accounting completes the collection of multi-faceted data in business activities through the tracking of enterprise budget implementation, compares and analyzes the difference between budget data and actual data, makes reasonable analysis and investigation of problems in a timely manner, reasonably controls the differences in the process of budget implementation, and completes the realization of the original goals of business activities. and feedback information so as to make reasonable annotations for long-term investment decisions.

4) Cost determination and cost calculation.

In the process of participating in enterprise decision-making, preparing plans and budgets, and helping management departments to guide and control business activities, management accounting can be said to be ubiquitous in the determination and calculation of costs, so it can be understood that an important part of the management accounting function is cost determination and cost calculation. According to different management needs, management accounting gives different annotations and classifications for the classification and definition of costs, and also sorts out and calculates the determination of costs.

There are five main functions of management accounting, which mainly include:

1. Do a good job in the economic prospects of the current operation and long-term planning of the enterprise**;

2. Establish an economic indicator system and implement an economic responsibility system to control the whole process of operation;

3. Do a good job in fund raising and strengthen cash flow management;

4. Establish a rigorous accounting and bargaining system, and increase rewards and punishments;

5. Participate in the economic decision-making of the enterprise!

The function of management accounting: It refers to the intrinsic function of management accounting, which is determined by the essence of management accounting. As a management control system, the basic functions of management accounting can be summarized into two categories: planning and control.

1) The planning function of the management control system requires management accounting to provide a variety of relevant historical and future information, and to select goals, various ways to achieve goals and possible results, and then plan how to achieve goals.

2) The control function of the management control system requires management accounting to ensure the authenticity and integrity of the financial information related to the organization's activities and resources, to supervise and measure performance, and to make the work on a predetermined track, for which management accounting should use its information to fully participate in the coordination and monitoring of the implementation process.

There are five main functions:

Cost accounting. Cost**.

Cost decisions. Cost control.

Cost assessment.

It refers to the inherent function of accounting in economic management, which is the essential attribute of accounting. All the functions of accounting are the effects that can be embodied by the accounting function under certain economic conditions. Since the founding of the People's Republic of China, China's accounting circles have for a long time held that "reflection" and "supervision" are the basic functions of accounting in accordance with Marx's exposition in "Capital" which summarized the accounting function as "the control of the process and the summary of concepts".

The so-called reflection is a "conceptual summary" of the process. The so-called "supervision" is the "control of the process". The reflection function of accounting, which can also be called the accounting function, is simply to account for economic activities and provide economic information, that is, through accounting work, record, calculate, and reflect the consumption and production and operation results in the process of production and operation, so as to provide scientific data for people to understand the production and operation situation and summarize experience in a timely manner.

The supervisory function of accounting means that accountants supervise and inspect economic activities through accounting work. The two functions of reflection and monitoring are closely linked and mutually reinforcing. Only reflection and no supervision, accounting work cannot play its role of correct reflection; If there is only supervision and no accounting reflection, accounting supervision will lose its foundation and will not be able to be practiced.

With the development of the economy and the emergence of management accounting, people's understanding of the accounting function has also continued to develop, and it is believed that accounting supervision should not only supervise the economic activities that have occurred or have been completed, but also carry out supervision during and before the event. Through the supervision of the whole process of economic activities, the process of economic activities can be controlled to achieve the expected goals and requirements. In view of the expansion of the scope of the accounting function and the strengthening of its role, it has been proposed that the "supervision" function should be changed to the "control" function, and that the "supervision" function should be included in the "control" function.

In addition, some people advocate that accounting has three functions: "reflecting, supervising, and promoting"; Accounting has four functions: "reflecting, supervising, controlling, and analyzing"; Accounting has six functions: "reflecting the economic situation, supervising economic activities, controlling the economic process, analyzing economic effects, improving economic prospects, and participating in economic decision-making", and so on.

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Accounting and monitoring are the most basic functions.

There are also several functions.

The beginning of modern accounting.

Speaking of accounting, it can be traced back to the European Mediterranean, a beautiful town called Tuscany in Italy on the Apennine Peninsula. There was an Italian mathematician of Luca Pacioli, a Franciscan friar. He was a close friend of Leonardo da Vinci, and his teaching activities and textbooks throughout Italy greatly influenced the teaching and research of mathematics.

Part of his Encyclopedia of Mathematics introduces double-entry bookkeeping, and it is this part of the chapter that became the earliest published summary document on the development of double-entry bookkeeping in the 15th century, focusing on the advanced bookkeeping methods in Venice until the end of the 15th century, thus effectively promoting the spread and development of Western-style bookkeeping.

In 1494, Pacioli published in Venice a Compendium of Arithmetic, Geometry, Ratios and Proportions, in which the Theory of Bookkeeping systematically introduced the "Venetian method of accounting", that is, the "double-entry bookkeeping", which could convert the results of complex economic activities and business competition into monetary figures. The financial statements formed on this basis not only help managers understand the past results of business operations, but also help managers open up the wisdom that is often entangled in external and often based on simple financial report figures, and create a new competitive model.

The Medici family used bookkeeping and financial reporting as the tools of the end of business, and built a business empire that spanned Europe. "Double-entry bookkeeping" is inextricably linked to the Italian Renaissance.

The bookkeeping is divided into 36 chapters and 3 appendices. The basic principles of double-entry bookkeeping are systematically studied. In the book, Pacioli describes the relationship between businessmen and bookkeeping, and businessmen should pay attention to grasping property rights, and discusses the principle of double-entry bookkeeping.

More than 500 years ago, Pacioli recognized that theoretical knowledge is only valuable when it can be put into practice; He understands that data characters are the only reliable basis for creditworthiness; He fully recognizes the importance of internal control; He should have an audit of the accounts.