ACCOUNTING ASSIGNMENT Accounting Assignment

Accounting Assignment

Answer 1)

The role of stakeholders and performance of any company are related to each other in numerous ways. Apparently, the performance is related to the sales turnover generated by the company; nevertheless, it is different stakeholders which are contributing towards this performance. If we talk about network partners, a supplier of packaging material will provide the company, in our case, pharmaceutical, with good quality material which will ensures that the final products remains usable for the final consumer. Suppliers often required turnover trend of firm so that they can plan their production accordingly and deliver the packaging raw material in timely manner (Beasley, 2009, 21).

Similarly, balance sheet information can tell the creditors of the company about the credit history. They can predict well in advance when the borrowing company is going to ask them for credit facility and how much amount. Employees and public in similar manner are crucial sources of information for the company. However, the annual report does not reveal everything to these stakeholders. The company often makes use of various press releases to inform its stakeholders about various other activities which are not initially reported in the financial reports. For instance, analyst briefing are presented on semi-annual basis so that investor and financial institutions can get the latest information about the company.

Processes of budgeting and accounting tools for strategic management encourage a focus on stakeholder in way that manage plans and consider the resources for increasing the value of shareholder and stockholder. Strategic management accounting tools help manager to focus on stakeholder through aligning the organizational goals with the value creation for stockholder and stakeholder.

The contemporary arguments and corporate governance's theorizing has been in polarization between the perspective of stakeholder and perspective of shareholder. At the same time supporters and advocates of every group put efforts to give good reason for the universality, rationality, and superiority of all theoretical models, they hardly pay concentrate on the old ideas, presuppositions, and assumptions reinforcing their viewpoints that are lesser valid and credible in conforming the constantly varying practices of corporate governance.

Answer 2)

Management accounting is generally forward-looking, model based to support decision-making it meets specific information needs of the managers within the organization. Management accountants apply various accounting techniques including ratio and margin analysis across product lines or service lines, business units and customers. Management accounting helps managers of an organization understand ...