Current trends in management accounting seem to focus on the accountant as a "strategic partner" in the overall success of the business strategy. The continuous evolution of technological advancements surrounding the ability to access financial and operational data on an almost real-time basis is a huge asset to the accountant in the strategic partner role.

In this highly competitive business environment, company executives must have access to not only historical data regarding operations but also predictive data for the future of the business's needs, such as inventory, raw materials, and the costs of labor. Financial statements are generally geared toward the guidance of generally accepted accounting principles that primarily focus on historical costs and reporting historical events. As such, extra work must be done to obtain and manipulate the information available in the financial accounting systems to be more useful to the company in terms of future predictability.

With this in mind, respond to the following question in your initial discussion post:

• To resolve this need for duplicative internal work and to make financial reporting more timely, do you believe that generally accepted accounting principles should be revised to allow the fair value reporting that is needed in a managerial accounting environment rather than only allowing historical cost? Why or why not?

Answer rating: 100% (QA)

Integrating fair value reporting into generally accepted accounting principles GAAP to align more closely with managerial accounting needs could indee... View the full answer