The Case Of A Newly Implemented Modern Management Accounting System In A Multination 3922195

The Case of a Newly Implemented Modern
Management Accounting System in a
Multinational Manufacturing Company
Daniel Watts1, P.W. Senarath Yapa2 & Steven Dellaportas3
Purpose Contemporary management accounting techniques (such as TQM, BSC, JIT) are
widely lauded by academia but the proposed relevance to business has not necessarily the view
held by industry (e.g. Burns & Vaivio, 2001; Chenhall & Langfield-Smith, 1998; Innes et al.,
2000. The purpose of this article is to investigate the acquisition by a modern multi-national firm
of a major IT-based management accounting program to assess the relevance and usefulness of
its functionality by identifying the type(s) of systems that are utilised and the rationale for
upgrading or modifying its system(s).
Design/methodology/approach – This study relies on a single case based on two in-depth semi
structured interviews with accounting and finance professionals in a multi-national
manufacturing company that recently implemented a modern management accounting system.
Findings – The findings indicate that despite demonstrating some relevance of the management
accounting information, the manufacturer deactivated components of the system that were
deemed irrelevant at particular levels of the organisation.
Originality/value – This paper provides evidence about the non-reliance on management
accounting information in a multinational company operating in Australia. The findings in the
study imply that relevance is linked to implementation, planning and training will help managers
to better prepare themselves in setting up contemporary management accounting systems.
Keywords: Change, IFRS, institutional, Portugal, principles, rules



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