FINANCIAL AND CREDIT ACTIVITY: PROBLEMS OF THEORY AND PRACTICE
Volume 3 (44), 2022
DOI: 10.55643/fcaptp.3.44.2022.3765 63
GLOBAL MANAGEMENT ACCOUNTING
PRINCIPLES IN THE SYSTEM OF PROVIDING
RESOURCE POTENTIAL OF THE ENTERPRISE
ABSTRACT
Effective enterprise management in conditions of business risk is based on the use of
relevant information. The main provider of accounting information is management ac-
counting, which requires clarification of its scientific positioning. The aim of the article
is to analyze scientific publications on the principles of management accounting, as well
as the content of the Global Management Accounting Principles, developed by CIMA
and AICPA, and to offer ways to improve them. The following research methods were
used in the article: analysis, synthesis, comparison, logical generalization and scientific
abstraction, systematic approach, statistical and historical methods.
The article reveals the essence of management accounting and its principles. The defi-
nition of management accounting in international regulations, the Law of Ukraine “On
Accounting and Financial Reporting in Ukraine”, publications of domestic and foreign
scholars are analyzed. A comparative analysis of the names and essence of the Global
Management Accounting Principles in the relevant normative document, the scientific
literature of domestic and foreign economists have been conducted. It is substantiated
that the global management accounting principles in the relevant international norma-
tive document should be as follows: 1) communication impact; 2) relevance of infor-
mation; 3) cost analysis; 4) trustworthy management. The proposed author’s interpre-
tation of management accounting and the names of its principles could be used to
amend international and domestic regulations and legislation.
Keywords: management accounting, global principles, resource potential
JEL Classification: М41, M42, D24
INTRODUCTION
The development of each country’s economy depends, to a large extent, on the effec-
tiveness of management decisions taken by the management of its entities. The main
provider of relevant information for making these decisions is management accounting.
This type of accounting as well as financial has its own principles of organization and
management. Strict adherence to these principles at the enterprise allows organizing
management accounting in the management system, strengthening its position, and
improving the methodology and techniques.
LITERATURE REVIEW
Currently, there is no consensus in the scientific literature on the list of principles of
management accounting, their content and application. For example, Johnson H. proves
the need to reorient the principles of management accounting from control functions to
ensure the systematicity of accounting processes [1]. Butkevich O. substantiated com-
pliance with the principles of management accounting through the implementation of
its functions [2]. Mazina O. established the relationship between the principles and ob-
jectives of management accounting to achieve complex objectives of business manage-
ment [3]. Puhachenko O. and Zarudna N. identified 73 principles of management ac-
counting and found significant similarity and repeatability [4]. Volkovska I. tried to sys-
DOI: 10.55643/fcaptp.3.44.2022.3765
Zadorozhnyy Z. -M.
Doctor of Economic Sciences, Vice-
Rector for Scientific Research, West
Ukrainian National University, Ukraine;
ORCID: 0000-0002-2857-8504
Muravskyi V.
Doctor of Economic Sciences, Associate
Professor, Department of Accounting
and Taxation, West Ukrainian National
University, Ukraine;
e-mail: vavanm2@gmail.com
ORCID: 0000-0002-6423-9059
(Corresponding author)
Semaniuk V.
Doctor of Economic Sciences, Associate
Professor, Head of the R&D
department, West Ukrainian National
University, Ukraine;
ORCID: 0000-0001-7010-9923
Gumenna-Derij M.
PhD, Doctoral Student, Department of
Accounting and Taxation, West
Ukrainian National University, Ukraine;
ORCID: 0000-0003-0901-0080
Received: 06/05/2022
Accepted: 22/05/2022
Published: 30/06/2022
© Copyright
2022 by the author(s)
This is an Open Access article
distributed under the terms of the
Creative Commons CC-BY 4.0