On the Convergence of Management Accounting and Financial Accounting - The Role of Information Technology in Accounting Change
97 Pages Posted: 23 Nov 2011 Last revised: 26 Nov 2011
Date Written: November 21, 2011
Abstract
In this article we explain why the recent development in MA and FA towards increased forward-looking perspective aligned with the advancements of information technology (IT) have lead to their convergence.
Drawing on the analytical model by Hemmer and Labro (2008) where forward-looking perspective of FA leads to forward-looking MA, we build a theoretical framework according to which information technology (IT) is a facilitator, catalyst, motivator or even an enabler of the convergence of MA and FA. The convergence covers firstly the technical and technological domain extending thereafter to behavioral and organizational domain with (un)intentional alignment of functions and processes and (un)intentional convergence of work and role. The applicability of this framework is illustrated with a comprehensive set of examples. Based on our examples, the forward-looking FA elements are often intertwined with MA and vice versa, and these relationships extend from technical and technological domain to behavioral and organizational domain. In most of our examples IT plays an important or even a crucial role in this convergence process.
Based on these convergence observations we open several avenues for further research, which increase both academic and practical relevance of accounting research.
Keywords: management accounting, financial accounting, forward-looking, convergence, information technology
JEL Classification: M15, M41
Suggested Citation: Suggested Citation
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