SYSTEMATIZATION OF ELEMENTS OF THE STRATEGIC ACCOUNTING METHOD

Transcription

1 Науково-практичне видання Незалежний аудитор 4 (II) 2013 ISSN UDC 657.1:005 SYSTEMATIZATION OF ELEMENTS OF THE STRATEGIC ACCOUNTING METHOD, PhD, Associate professor of the department of accounting and state fiscal control, State institution of higher education Kryvyi Rih National University The article deals with the investigation of the essence of the strategic accounting method and systematization of its elements by dividing them on general and proper. It must be mentioned that the author proposed to structure own methods depending on functions of strategic Strategic accounting, method, element of method, instrument, СИСТЕМАТИЗАЦІЯ ЕЛЕМЕНТІВ МЕТОДУ СТРАТЕГІЧНОГО ОБЛІКУ Криштопа І.І., к.е.н., доцент кафедри обліку та державного фінансового контролю, ДВНЗ «Криворізький національний університет» У статті досліджено сутність поняття «метод стратегічного обліку» та систематизовано його елементи шляхом їхнього поділу на загальнонаукові та власні. При цьому власні елементи методу запропоновано структурувати залежно від функцій стратегічного обліку. Стратегічний облік, метод, елемент методу, інструмент, бухгалтерський облік. Систематизация элементов метода стратегического учета Криштопа И.И., к.э.н., доцент кафедры учета и государственного финансового контроля, ГВУЗ «Криворожский национальный университет» В статье исследована сущность понятия «метод стратегического учета» и систематизированы его элементы путем их разделения на общенаучные и собственные. При этом собственные элементы метода предложено структурировать в зависимости от функций стратегического учета. Стратегический учет, метод, элемент метода, инструмент, бухгалтерский учет. Statement of the problem The restructuring of the national economy in 1990s has determined the need in implementation of strategic management paradigm into the practice of national enterprises and creation of the information system, which would be appropriate to its goals and objectives. Among the ways of solving this problem we should mention the gradual introduction of strategic accounting into the practice of national enterprises. But this process has faced numerous methodological problems. In particular, among the most important unsolved issues we should mention lack of definite understanding of the essence of the strategic accounting method and its elements. Analysis of recent publications Major contribution to the investigation of the strategic accounting method and systematization of its elements was done by Babkina О.М., Ivashinenko L.О., Semanuyk V.Z., Suvorova S.P. and Yarkova І.V. But there are a number of issues that need clarification. Purpose of article The goal of the article is to figure out the essence of the strategic accounting method and to systematize its elements. For the achievement of the goal the following problems must be solved: to study existing approaches of scholars to definition of the strategic accounting method; to find out elements of the strategic accounting method, which are mentioned in economic literature; to clarify the essence of the strategic accounting method, structure of its elements and to systematize them. Discussion The term method is defined by New explanatory dictionary of the Ukrainian language as the way of research the phenomena of nature and social life; way or system of techniques used in the field of certain activity (science, manufacturing, etc.) [3, p. 245]. This definition indicates the key role of this category in the ikryshtopa@yandex.ua

2 ISSN (II) 2013 Науково-практичне видання Незалежний аудитор methodology of any science (including the strategic accounting), because the method helps to investigate its subject and objects. But in spite of this fact, analysis of economic literature shows a rather limited number of scholars who pay attention to this issue. In particular, Suvorova S.P. defines the term method of strategic accounting as a complex of methods of operative, statistic and financial accounting, which meet the requirements of specific needs of the system of control of the enterprise management [5, p. 75]. The author believes that this point of view is questionable. Analysis of practice of the strategic accounting at national enterprises helps to find out a wider range of its methods. So, this approach can`t help to highlight the possibilities of strategic Ivashinenko L.О. defines method of strategic accounting as complex of different ways and techniques, methodologies and concepts which help to display objects of strategic management accounting in the information environment of commercial organizations [2, p. 46]. The author also considers this approach rather controversial because of the usage of the terms method and concept. The meaning of these terms is much broader than the meaning of the term method. This situation leads to the terminological confusion during further study of the theory and practice of strategic Thus, based on the results of the research, the author proposes to define the method of strategic accounting as the sum of its elements which help to collect process and display information about objects of strategic The next important aspect of this research is clarification of the number of elements of the method of strategic The results of analyses of the research works of scholars in the field of strategic accounting indicate serious differences in their points of view on this issue. Among methods of strategic accounting Babkina O.M. indicates Balanced Scorecard system, the value added model, the system just in time, the method ABC, direct-costing, standard-costing, value analysis, value chain and calculation of cost of the entire life cycle of products [1, p. 84]. Semanyk V.Z. names methods of monitoring competitive position (trend analysis for certain parameters) among methods of strategic accounting, monitoring the value of the company (brand etc.), methods of strategic pricing and costing (AB-costing, LC-costing, JIT-costing, target-costing, calculation based on the value chain, PFC-calculation), methods of strategic positioning, planning methods and flexible budgeting (flexed budget or flexible budget), balanced scorecard (BSC), methods of strategic (SWOT-analysis, GAP-analysis, CVP-analysis, internal and external environment, profitability analysis for consumers products, business processes, etc.) and system analysis, model of value added (EVA) and monitoring the need to change strategy, formation signal indicators to identify problems [4, p. 59]. Also, methods of strategic accounting were explored in the research work of Yarkova I.V. Among them she named the method of investing in energy saving technologies, research method, financial engineering, strategic hedging hybridization, benchmarking, the benefits of the method, the method of evaluation of capitalized assets, strategic listening, method sheets gestation, method of inspection of production units, the method of reducing operating costs and increasing income method of increasing the company s value investment techniques, methods of prediction-balanced performance, economic value added method, the method of cost accounting for responsibility centers, Target costing, the method of continuous forecasting method exclusion phases with high costs, a method for creating flexible manufacturing systems method of self-motivation and promotion of staff, the target method, flexible coordination bonds, the method increase the knowledge of staff and external relations, matrix methods of strategic planning, strategic positioning, analysis of the external environment, the analysis range and a method of accounting and structuring information [6, p. 49]. It is important to note that these approaches are debatable and must be clarified. It is arguable to mention among methods of strategic accounting the system of balanced scorecard, the system just in time, models of value added and other similar categories. The author believes that they belong to his instruments. The validity of this view can be confirmed by the results of the study that are presented below. Analyses of economic literature showed the absence of research, devoted to the clarification of the term instrument of strategic accounting. New explanatory dictionary of the Ukrainian language defines the term instrument as tools for work or a number of tools [3, p. 186]. Taking into consideration this definition and the author s definition of the method of strategic accounting it is recommended to define the term instrument of strategic accounting as a set of special techniques for effective use of methods of strategic That is why identification of the definition of the method (including its components) and strategic accounting instrument, which clearly can be seen in the approaches highlighted above, is not appropriate. The next important aspect of the research is the systematization of methods of strategic It can be clearly seen in analyzed approaches by a number of 35

3 Науково-практичне видання Незалежний аудитор 4 (II) 2013 ISSN Ukrainian and foreign scholars. They represent only the number of elements of the method of strategic accounting which does not contain any classification signs [1, p. 84; 4, p. 59]. The approach of Yarkova I.V. can be considered as an exception. It is based on the relationship between methods of strategic accountant and its forms (the formation of which is done on the basic of business strategies) [6, p. 49]. This point of view is rather interesting, but it does not let to cover all strategic accounting methods due to the large number of possible variants of company strategies. In order to solve this problem, the author made an analysis of the special economic literature and current practices of strategic accounting in national enterprises, which allowed him to figure out the following groups of methods: general scientific and own. General scientific methods of strategic accounting are based on the principles and categories of general scientific knowledge and theories used in most disciplines. It was found out by the author that in the practice of strategic accounting the most common general scientific methods are analysis, synthesis and specification. In order to make a complete coverage of this issue we should pay more attention to the research of the essence of all methods, mentioned above, and their place in the practice of strategic Analyses is a method of investigation of objects of strategic accounting by his imaginary separation into components, the individual elements and their evaluation of the individual within a whole (for example, while using such instrument of strategic accounting as ABC, this method helps to figure out pool costs for each type of business in the frame of its financial and economic activity). Synthesis is a method of studying objects of the strategic accounting in its integrity, unity and interrelation of its individual components by merging diverse information about the object of the strategic accounting (for example, when using such instrument as SWOT-analysis, this method is used during the comprehensive assessment of the situation, which has an impact on the enterprise by examining its opportunities, threats and strengths and weaknesses). Specification is a method of strategic research facility registered under specific conditions (circumstances) of its existence, occurrence (for example, when using the instrument of the strategic account called just in time, a calculation of a number of materials, components and semi-finished products, which should arrive in a specific place in a specified time, is done). Another group of methods, used in the practice of strategic accounting is the group of proper methods that uses methods of statistics, econometrics, economic analysis and other sciences. Above all it is appropriate to mention in the group of proper methods of strategic accounting a number of methods of financial The author believes that systematization of proper methods of strategic accounting must be done according to the functions of strategic accounting that they help to fulfill: the function of analyses, planning, organization, control and regulation. The usage of proper methods in the process of fulfilling of named functions must be considered more detailed. Analytical function of the strategic accounting collects important data for the process of manager`s interpretation of internal reports of the enterprise and different external sources in order to identify opportunities and threats of macroenvironment of enterprises, as well as strengths and weaknesses its microenvironment. The implementation of this function provides method of economic analysis, decision theory, and mathematical, statistical, econometric and heuristic methods. These methods are ways to identify patterns and trends of economic processes as economic activity in the enterprise and in its business environment that subsequently selects the most appropriate options for management decisions. For example, when using such instrument of the strategic accounting as SWOT-analysis, heuristic methods are used in order to allow to identify and estimate internal and external factors that help or prevent the achievement of the goal of enterprise functioning. The function of planning concerns the process of development of budgets, projected balance sheets and special system of parameters, which will help to monitor the process of implementation of the chosen strategy. In order to implement this function such methods as balance, regulatory and calculation are used. It is important to learn more about each of these methods. The balance method is a mutual connection sentenced of existing and projected resources of the enterprise and the need for them within the scheduled period. The essence of the normative method is to set goals for a certain period basing on the norms of various resources per unit of output now. The method of calculation is an evaluation of the cost of manufacturing goods, works or services by measuring and distribution costs, which belong to a particular object of calculation. These methods help to implement such an important instrument of the strategic accounting as budgeting. Only its usage can help to develop and accept budgets. The control function concerns monitoring budget expenditures, as well as full achievement of strategic objectives of the enterprise by the evaluation of the relevant parameters. The fulfillment of this function is provided by the method of detecting abnormalities, which concerns the process of identifying 36

4 ISSN (II) 2013 Науково-практичне видання Незалежний аудитор discrepancies between actual and planned data in order to make important management decisions in time. Such method also helps to the realization of such instrument of strategic accounting as budgeting. Organizational function concerns building an efficient workflow between departments of companies that provide prompt obtain of the necessary information to all levels of management. The main method that helps to fulfill this function is the method of regulation. It concerns the statement in the accounting policies of internal corporate standards and other internal regulations of certain rules of collecting and accumulating the necessary information and its transmission to specific internal consumers. Such function of the strategic accounting as regulation concerns formation of the data base for management decisions in case of need to adjustment the chosen strategy. The implementation of this function is made with the help of such methods as documentation and financial statements. The method of documentation concerns observation and reflection of all business transactions in the relevant primary accounting documents. The method of financial statements concerns the formation of a system of interrelated economic indicators of economic activity in a particular document over the certain period. It must be noted that such methods as regulation, documentation and financial statements play an indirect role in realizing all instruments of the strategic They help to formulate an important database for their usage. The author`s propositions are presented in fig. 1. GENERAL SCIENTIFIC METHODS FUNCTIONS PROPER METHODS economic analyses mathematical ANALYSES statistical econometric Analyses heuristic methods decision theory ORGANIZATION regulation regulation Synthesis PLANNING normative calculation Specification CONTROL REGULATION deviation documentation financial statements Fig. 1. The relationship of elements of the method of strategic accounting with its functions 37

5 Науково-практичне видання Незалежний аудитор 4 (II) 2013 ISSN Conclusions According to the results of the research, the term strategic accounting method has been defined by the author as a set of methods and means, which must help to obtain information about the objects of the strategic accounting at certain enterprise. It was suggested to systematize elements of the strategic accounting method basing on the sign of belonging, which would allow to divide them into two groups general and proper. Also it was proposed to systematize the last group in conjunction with such strategic accounting functions as analysis, organization, planning, control and regulation. The author believes that the above propositions will contribute to the implementation of strategic accounting at national enterprises and ensure the future effectiveness of management decisions by meeting its needs in accurate and meaningful information. 1. Babkina О.М. Methods of strategic management accounting in an industrial plant: summary dis.... Candidate of economic sciences: / O. Babkina, [St. Petersburg. State engineer-economy University Press], [E resource] / Access mode: dlib.rsl.ru/ [in Russian] 2. Ivashinenko L.О. The development of the theory and methodology of strategic accounting in business organizations: summary dis.... Candidate of economic sciences: / Ivashinenko L.O.; [Michurin. State. farmers. University Press], [E resource] / Access mode: [in Russian] 3. New Dictionary of the Ukrainian language in four volumes. K.: Aconite, [in Ukrainian] 4. Semanyuk V.Z. Forming strategic accounting subsystem in market conditions / V.Z. Semanyuk // Formation of market relations in Ukraine S [in Ukrainian] 5. Suvorova S.P. Formation of strategic management accounting in industry: theory and methodology: summary dis.... Doctor of economic sciences: / S.P. Suvorov [Orel State. tech. University Press], [E resource] / Access mode: ru/ [in Russian] 6. Yarkova I.V. Strategic management accounting in the chemical industry: summary of the thesis.... Candidate of economic sciences: / I.V. Yarkova, [Sarat. State. Social-Economy. University Press], [E resource] / Access mode: [in Russian] 7. The Balanced Scorecard Institute, a Strategy Management Group company [E resource] / Access mode: balancedscorecard. оrg [in English] 8. The Role of ABC In Key Account Management, Armstrong Laing Group. April 2002 [E resource] / Access mode: com/ content/ abmresources/ abmresource. аsp [in English] 1. Бабкина О.М. Методы формирования стратегического управленческого учета на промышленном предприятии: автореферат дис.... кандидата экономических наук: / О.М. Бабкина; [Место защиты: С.-Петерб. гос. инженер.-эконом. ун-т], [Електронний ресурс] / Режим доступу: ru/ Ивашиненко Л.О. Развитие теории и методики стратегического учета в коммерческих организациях: автореферат дис.... кандидата экономических наук: / Л.О. Ивашиненко; [Место защиты: Мичурин. гос. аграр. ун-т], [Електронний ресурс] / Режим доступу: 3. Новий тлумачний словник української мови у чотирьох томах. К.: Аконіт, Семанюк В.З. Формування підсистеми стратегічного обліку в умовах ринкових відносин / В.З. Семанюк // Формування ринкових відносин в Україні С Суворова С.П. Формирование стратегического управленческого учета на промышленных предприятиях: теория и методология: автореферат дис.... доктора экономических наук: / С. П. Суворова; [Место защиты: Орлов. гос. техн. ун-т], [Електронний ресурс]/режим доступу: 6. Яркова И.В. Стратегический управленческий учет на предприятиях химической промышленности: автореферат дис.... кандидата экономических наук: / И.В. Яркова; [Место защиты: Сарат. гос. соц.-эконом. ун-т], [Електронний ресурс] / Режим доступу: 7. The Balanced Scorecard Institute, a Strategy Management Group company [Електронний ресурс] / Режим доступу: http: // 8. The Role of ABC In Key Account Management, Armstrong Laing Group. April [Електронний ресурс] / Режим доступу: com/ content/ abmresources/ abmresource. аsp Дата подання рукопису: р. 38