Vlum 1, N. 3, cmbr 2012 29 ACCOUNTING INFORMATION AS AN AI TO MANAGEMENT ECISION MAKING SIYANBOLA, TRIMISIU TUNJI, Ph i Accutig, Studt Curti Uivrsity Tchlgy, Sarawak, Malaysia ABSTRACT This study is th aalysis accutig irmati as a aid t maagmt dcisi makig. A survy rsarch dsig was adpt i which ity wrkrs, a typical mauacturig cmpay, wr us ad data wr cllct usig qustiair. Fur rsarch hypthss wr rais ad tst; whil th dmgraphic irmati th rspdts wr aalys usig simpl prctag, th hypthss wr tst usig t-tst statistic at a sigiicat lvl 5%. Th tstig th hypthss rval that: Accutig irmati has cts maagmt dcisi; Thr is a sigiicat rlatiship btw th prcpti mplys ad accutig irmati; Thr is a sigiicat rlatiship btw tim actr ad accutig irmati; Accutig irmati has cts th cmpay s prrmac Bas th idigs it was rcmmd that cmpais shuld mply prssial accutat i rdr t prvid abl irmati ad kp accurat rcrd thir accuts Ky wrds: Accutig, irmati, maagmt, prrmac, iacial Itrducti Accutig is th laguag busiss as it is th basic tl r rcrdig, rprtig ad atig cmic vts ad trasactis that act busiss trpriss. It prcsss all dcumts a busiss iacial prrmac rm payrll, cst, capital xpditur ad thr bligatis t sal rvu ad wrs quity. It prvids iacial irmati abut s busiss t th itral ad xtral usrs, such as maagrs, ivstrs ad thrs. It is smtims rrr t as a mas t a d, with th dig big th dcisi that is hlp by th availability accutig irmati (Arld ad Hp 1990). Maagmt is th art wrkig particularly thrugh ppl, r th achivmt th brad gals a rgaisati (Ejir 197), i tryig t achiv ths gals th maagr has t map ut stratgis t id ut th accutig irmati suitabl r th cmpay. Maagmt accutig uss bth iacial ad iacial irmati ad is grally itd r th us itral usrs wh us th irmati t mak dcisis that hlp achiv th gals ad bjctivs th rgaisati. Fiacial irmati us by maagmt accutats iclud sal grwth, prits, rtur capital mply ad markt shars, iacial irmatis iclud custmr satisacti lvl, prducti quality, prrmac cmptig prducts ad custmr lyalty. Maagmt accutats us bth iacial ad iacial irmati t aid busiss dcisi-makig (Mlissa Bushma 2007) cisi makig is th prcss chsig altrativ curss acti usig cgitiv prcsss. Makig dcisi is cssary wh thr is clar curs acti t llw. Accutig systms ca aid ur dcisi makig by prvidig irmati rlvat t th dcisi ad t th dcisi makir. Accutig systms als prvid chck r th validity thrugh th prcss auditig ad accutability (Gray t. Al 1996). Ectiv ad icit accutig irmati plays a ctral rl i maagmt dcisi makig. Litratur Rviw I maagig a rgaisati ad implmtig a itral ctrl systm th rl accutig irmati is crucial. A imprtat qusti i th ild accutig ad maagmt dcisi makig ccrs th it accutig irmati with rgaisatial rquirmts r irmati cmmuicati ad ctrl (Niclau 2000). Accutig irmati systm is csidr as a subsystm Maagmt Irmati Systm (MIS). T rgard accutig as a irmati systm, prhaps, is th latst diiti accutig, as ca b duc rm th statmt Amrica Istitut Crtii Public Accutats (1966). Accutig actually is irmati systm ad t b mr prcis, accutig is th practic gral thris irmati i th ild ctiv cmic activitis ad csists a majr part th irmati which is prst i th quatitativ rm. Bckhdt (1999), dis accutig irmati systms as systms that prat uctis data
Vlum 1, N. 3, cmbr 2012 30 gathrig, prcssig, catgrisig ad rprtig iacial vts with th aim prvidig rlvat irmati r th purps scr kpig, attti dirctig ad dcisi makig. Studis hav shw that succssul implmtati accutig systm rquirs a it btw thr actrs (Markus 193). Firstly, a it must b achiv with dmiat viw i th rgaisati r prcpti th situati. Scdly, th accutig systm must it wh prblms ar rmally slv, i.. th tchlgy th rgaisati. Fially, th accutig systm must it with th cultur, i.. th rms ad systm that charactris th rgaisati. Accutig systm will b usul wh irmati prvid by thm is us ctivly i dcisi makig prcss by usrs (Christias 199). Otly (190) argus that accutig irmati ar imprtat parts th abric rgaisatial li ad t b at i thir widr maagrial, rgaisatial ad virmtal irmati t ly dpds th purpss such systms but als dpds ctigcy actrs ach rgaisati. Accutig irmati ar said t b ctiv wh th irmati prvid by thm srvs widly th rquirmts th systm usrs. Ectiv irmati shuld systmatically prvid irmati which has pttial cts dcisi makig prcss (Ivs 193). Th ctivss accutig irmati has lg b a subjct may rsarchs (Chhall 196, Chg 1996, Kim 19, Mia 199). Accutig irmati is usually catgris udr tw grups: irmati that ilucs dcisi makig ad maily r th purps ctrllig th rgaisati; irmati that acilitat dcisi makig prcss ad mstly us r crdiati withi a rgaisati (Kr 1992). Hubbr (1990), argus that itgrati accutig irmati lads t crdiati i rgaisati, which i tur, icrass th quality th dcisi. Sm rsarchrs i accutig shws that th ctivss accutig irmati systm dpds up th quality th utput th irmati systm that ca satisy th usrs s. Grally spakig, accutig irmati prvids iacial rprts daily ad wkly basis ad als prvids usul irmati r mitrig dcisimakig prcss ad prrmac th rgaisati. Sim (197) i his study us th irst part th statmt as masur ctrl r maagmt ad th scd part r atig th ctivss th accuutig irmati via ctius mitrig. Accssibility t irmati rlatig t th mai trasacti a rgaisati lads t a catgris dtail irmati which acilitats dcisi makig i ay diicult situati (Mia 199). Accutig irmati systm is a cmputr bas systm that (Niclaau 2000) dis as a systm that icrass th ctrl ad hacs th cprati isid th rgaisati. Quality irmati grat rm accutig irmati is vry imprtat r maagmt (Essx 199). Kim (199) argus that usag accutig irmati dpds th prcpti th quality irmati by th usr. Quality irmati dpds rliability rm rprtig, timliss ad rlvac t th dcisi. Ectivss accutig irmati systm als dpds th prcpti dcisi makrs th usulss irmati grat by th systm t satisy irmatial s r prati prcsss, maagrial rprts, budgtig ad ctrl withi rgaisati. Aggrgati irmati is csidr as mas cllctig ad summarisig irmati withi a giv tim prid (Ch 199). Histrically, accutig is as ld as ma, but th iitial rmal litratur rigiat rm a Italia mk ad mathmaticia Luca Pacili (19). I his amus tratis Summa Arithmatical Gmtrical prprti t prprtimalitai (19) i Vic, Rvrd athr Pacili dscrib th dubl try systm by givig isight it th rasig bhid accutig rcrds. H pstulat that all tris must b dubl try, i.. wh is dbit, th thr must b crit, r dbit rcivr ad crit th givr. Ev thugh durig this prid th rcrds wr prpar t shw statmt r th busiss rathr tha th wr th yarly prparati was lackig. Lg (1999). Atr Pacili, a dutch ma advcat th prit ad lss accut at yarly itrval. Th lvl civilisati ad tchlgical advacmt hlp i th dvlpmt mdr mthds accutig. urig th idustrial rvluti thr was r sphisticat accutig mthds. irt bdis wr rm g ACA (Sctlad 15); ACA (Eglad ad Wals 10); AICPA (USA 17). With th dvlpmt w mthds wrship was sparat rm maagmt. Sic th discvry th dubl try pricipl, thr has b trmdus dvlpmt i accutig thris ad mthds. Th itrducti micr ad mii cmputrs hav brught hac prrmac but th udamtal pricipl rmais uchag. Lcally, i Nigria, rcrd kpig has atcts i th acit kigdms ad mpir ad prmit th was th pridic ctributi which wr rcrd th wall, but th gratig ryal chartr t Ryal Nigria Cmpay was th turig pit i rcrd kpig i Nigria. Th gvrig accutig pricipl i Nigria was almst th sam as th s i Britai, ur clial mastr. Th Istitut Chartr Accutats Nigria (ICAN) was stablish i 1965 ad aliat with th prssial istituts i Britai ad USA. Th Crprat Rprt 1975 rmulat by th Sadilad Cmmitt i th Uit Kigdm rcgiz
Vlum 1, N. 3, cmbr 2012 31 amgst thrs, th llwig usr-grups as havig a rasabl right t irmati: * Th Equity-Ivstr grup: This icluds bth th xistig ad pttial sharhldrs as wll as hldrs cvrtibl dbturs. This grup is itrst i arigs, bth currt ad utur, ut which thir dividd ca b paid. Thy ar als itrst i th scurity thir ivstmt/dividd (dividd cvr) as wll as th rturs ivstmt; * Th La-Critrs grup: This icluds bth th xistig ad pttial dbtur hldrs ad la stcks as wll as prvidrs shrt trm scur ad uscur las. This grup is itrst i th slvcy i rdr t sur rpaymt thir las. Baks als all withi this grup; * Th Emplys grup: This icluds xistig, pttial ad past mplys ad thy ar itrst i bth pritability ad liquidity th cmpay i rdr t prvid cvr r th paymts thir salaris ad ctiuus rtti i th cmpay; * Th Aalyst/Advisr grup: Ths ar iacial aalysts, juralists, cmists, bakrs, rsarchrs, trad uis, stck prvidrs tc. Thy hav dirt ways aalyzig th iacial statmt dpdig th thir clits; * Th Busiss Ctact grup: This icluds custmrs, trad critrs, supplirs, busiss rivals tc. This ppl wuld b itrst i th slvcy th cmpay t sur prmpt paymt thir dus; * Gvrmt: It is th gral bliv th ppl that gvrmt is ly itrst i paymt taxs by cmpais ad idividual. This is partly tru as gvrmt is als itrst i th lg trm stability cmpais, as ly wh thy ctiu i busiss that th gvrmt wuld b ulill, as this will guarat ull mplymt citizry; * Th Public: This grup cmpasss all arlist grups ad it is th bliv this writr that whvr a cmpay is cit i a ara, th public will b lkig rward t rditi crtai scial rspsibilitis ad it is th ctiuus xistc such cmpay that abls th public t jy mr such bits; Accutig plays imprtat ad usul rl by dvlpig th irmati r prvidig aswr t may qusti ac by th usrs accutig irmati such qustis ar: Hw gd r bad is th iacial cditi th busiss? Has th busiss activity rsult i a prit r lss? Hw wll th dirt dpartmts th busiss hav prrm i th past? Which activitis r prducts hav b pritabl? Out th xistig prducts which shuld b disctiu ad th prducti which cmmditis shuld b icras? Whthr t buy a cmpt rm th markt r t mauactur it? Whthr th cst prducti is rasabl r xcssiv? What has b th impact xistig plicis th pritability busiss? I th light past prrmac th busiss hw shuld it pla r utur t sur dsir rsults? Abv ar w qustis ac by usrs accutig irmati, which ca b satisactrily aswr with th hlp suitabl ad cssary irmati prvid by accutig Th critics iacial accutig hav pit ut sm gaps i th ccpt, sm which ar as llws: Fiacial accutig prmits altrativ tratmts as it is bas ccpts ad llws grally accpt pricipls, sic thr ar mr tha such pricipls, this prmit altrativ tratmt withi th ramwrk grally accpt pricipls; Fiacial accutig is dsig t supply irmati i th rm statmts (Balac Sht ad Prit ad lss accut) r a prid rmally a yar, hc th irmati is, at bst, histrical itrst ad ly pst-mrtm aalysis th past ca b cduct, whras th busiss rquirs timly irmati at rqut itrvals t abl th maagmt t pla ad tak crrctiv acti; Fiacial accutig ds t discls th prst th busiss, hc assts ar rcrd at thir histrical cst i li with gig ccr basis rcrdig Statmt Prblm Grally, th us accutig irmati will bcm critical actr i chagig cmptitiv virmt, r th mauacturr t ctivly ad icitly mak dcisi. Th majr prblm discvr r maagmt is th idtiicati udamtal ccpt accutig irmati t b implmt by ach cmpay which ca act th cmpay psitivly r gativly ad thrr, thr is a prblm. I a particular ccpt accutig irmati us by th cmpay act th maagmt dcisi gativly, ad this hlps us t rcgis th ras r th gativ ct, which ca b as a rsult adpti wrg accutig irmati r ucrtii accutat givig wrg irmati t th
Vlum 1, N. 3, cmbr 2012 32 cmpay which ca lad t wrg dcisi t th prgrss th cmpay. Th purps is t s th r accutig irmati t ay busiss rgaisati ad hw it aids i maagmt dcisi makig. Rsarch Qustis Th study was guid by th llwig rsarch qustis: s accutig irmati hav ay ct maagmt dcisis? Is thr ay rlatiship btw th prcpti th mplys ad accutig irmati th irm? What ar th lmts that act adquat accutig irmati withi th irm? s accutig irmati act th cmpay psitivly r gativly? Rsarch Hypthsis Fr th purps aalysig th data, th llwig hypthss wr tst: H1: Accutig irmati ds t hav ay ct maagmt dcisi makig H2: Thr is sigiicat rlatiship btw th prcpti mplys ad accutig irmati H3: Thr is sigiicat rlatiship btw tim actr ad accutig irmati H: Accutig irmati ds t hav ay ct th cmpay s prrmac. Mthdlgy Th study mply dscriptiv rsarch dsig th xpst act typ. Th mthd was chs bcaus it hlp t dscrib rcrd, aalys ad itrprt th cditi, prvailig practics, bli, attituds ad gig prcss that xists i th survy (Ndagi, 19). Ppulati, Sampl ad Samplig Tchiqu Th ppulati cmpris all wrkrs Eghimai Idustris Limit. Frm th ppulati, a sampl 50 wrkrs (20 Fmals ad 30 Mals) was btai thrugh th simpl radm slcti tchiqu. Istrumt Th istrumt us t gathr irmati i this study is a sl-dsig qustiair. Th qustiair csists tw sctis. Scti A licits dmgraphic irmati lik gdr, wrkig xpric, whil Scti B ctai structur itms rlatig t th rsarch qustis that cssitat this rsarch. Validity ad Rliability th Istrumt T sur th validity this rsarch, th istrumt was subjct t criticism by spcialist i th aras ucatial maagmt asid rm pr rviw cduct by th rsarchr. Th rliability th istrumt was btai thrugh a tst-rtst tchiqus t aalys th data cllct. Rsults l 1: Accutig irmati ds t hav ay ct maagmt dcisi Subjct N cisi Agr 0 3.3 0.1 isagr 1 0 1. 0.2 Lvl sigiicac 0.5 l 30.5 1.6 Rjct Sic t- is gratr tha th tabl (i.. 30.5 > 1.6), th th ull hypthsis is rjct, whil th altrativ hypthsis is accpt ad cclud that accutig irmati has sigiicat ct maagmt dcisi. l 2: Thr is sigiicat rlatiship btw th prcpti mplys ad accutig irmati. Subjct N Agr 3 7 3.22 0.1 7 isagr 1 3 2.0 0.0 Lvl sigiicac 0.5 l cisi 33.6 1.6 Rjct Sic t- is gratr tha th tabl (i.. 33.6 > 1.6), th th ull hypthsis is rjct, whil th altrativ hypthsis is accpt ad cclud that thr is a sigiicat rlatiship btw th prcpti mplys ad accutig irmati. l3: Thr is sigiicat rlatiship btw tim actr ad accutig irmati. Subjct N cisi Agr 1 3. 0.1 6 isagr 9 1.6 0.2 5 Lvl sigiicac 0.5 l 26.17 1.6 Rjct
Vlum 1, N. 3, cmbr 2012 33 Sic t- is gratr tha th tabl (i.. 26.17 > 1.6), th th ull hypthsis is rjct, whil th altrativ hypthsis is accpt ad cclud that thr is a sigiicat rlatiship btw tim actr ad accutig irmati. l : Accutig irmati ds t hav ay ct th cmpay prrmac Subjct N cisi l Agr 3 9 3.2 0.1 isagr 1 1.5 0.2 22.23 1.6 Rjct 1 Lvl sigiicac 0.5 Sic t- is gratr tha th tabl (i.. 22.23 > 1.6), th th ull hypthsis is rjct, whil th altrativ hypthsis is accpt ad cclud that accutig irmati has sigiicat ct th cmpay prrmac. iscussi Fidig hypthsis that ccluds that accutig irmati has sigiicat ct maagmt dcisi agrs with th wrk Ail Kimr (200) wh ud ut that accutig irmati bviat th cssity rmmbrig varius trasacti. Th tstig i hypthsis tw which cirms a sigiicat rlatiship btw th prcpti mplys ad accutig irmati alls i li with th idig uglas (2007) wh pstulat that mplys ad thir rprstativ ar itrst i irmati abut th stability ad pritability thir mplyrs ad als itrst i th irmati which abls thm t assss th ability th trpriss t prvid rmurati, rtirmt bits ad mplymt pprtuitis. Kim (199) als argu that usag accutig irmati dpds th prcpti th quality irmati by th usr. Th rsult th study bas hypthsis thr ud a sigiicat rlatiship btw tim actr ad accutig irmati. This was cllabrat by th idigs Ch (199) wh psit that accutig irmati imprv icicy prati by prvidig mr timly irmati. PAT (2002) qually ud ut that tim actr is vry imprtat i th cas pridicity ccpt which dis a spciic itrval tim r which a tity s rprts ar prpar, which ca b a iscal yar, atural yar, quartrly r v mthly. Rsult hypthsis ur which rval that accutig irmati hav ct cmpay s prrmac is i csac with th idigs Hubbr (1990) wh is th pii that accutig irmati prvids usul irmati r mitrig dcisi makig prcss ad prrmac th rgaisati. Ch (199) als cam ut with th rsult that accutig irmati imprv rgaisatial prit by imprvig th icicy ad ctivss its supply chai. Cclusis Th study rval that accutig irmati prrms a crucial rl maagmt dcisis ad rgaisati prrmacs, which has b shw t b majr rc i dcisi makig. This is achiv by implmtig th bst udamtal ccpt accutig suitabl r ach cmpay. Th cmpay us as cas study mad th rsarchr t udrstad that, r ay cmpay t b succssul it shuld davur t mak us accutig irmati bcaus accutig itsl is a laguag busiss, ad br vturig it ay busiss, must udrstad th laguag such busiss, s as t kw th right mthd t achiv th stat gals ad bjctivs. Studis hav shw that succssul utilisati accutig irmati rquirs a it btw thr actrs. First, a it must b achiv with dmiat viw i th rigiati r prcpti th situati. Scd, th accutig systm must it wh prblms ar rmally slv, i.. th tchlgy th rgaisati. Fially, th accutig irmati must it with th cultur i.. th rms ad systm that charactriss th rgaisati. Rcmmdatis Bas th idig this study, it is rcmmd that: Cmpais shuld csult prssial accutat wh startig a busiss t lar abut th varius laws that act thm ad als t amiliaris thmslvs with th varity iacial rcrds that thy will t maitai; A prssial accutat shuld b mply by th cmpay i rdr t prvid abl irmati ad kp accurat rcrd th cmpay s accut; Th cmpay shuld always kp rcrds past vts i cas utur purps, this ca b pssibl with th us cmputr r by ully autmatig th cmpay s pratis; Emplys shuld b curag t dvlp thmslvs by bcmig prssials i thir chs carr, this will act th cmpay t grw psitivly; Erts shuld b mad t masur th cts currtly mply accutig ccpt maagmt dcisi makig; Rgular mtig with sta shuld b rgais t dissmiat irmati abut th cmpay ad als licit back that hlp t imprv th cmpay.
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