Suite 1, 25 Westerton Road, Glasgow, G68 0FF
November 29, 2010

The Tension Between Financial Accounting and Management Accounting

I believe it is unhelpful, even dangerous, for accountants to use the same methods to compile their management accounts as they would their financial accounts.   Let me give one simple example – the matching (accruals) concept. The matching concept means that if we build inventory (stock) this month and sell it next month then