This volume, More Accounting Changes, is a revised and updated edition of Herz’s earlier work, reflecting: developments in financial reporting; global developments regarding the use of International Financial Reporting Standards; current efforts at disclosure modernization and simplification by the SEC and FASB; and more developments in the field.

Written by two experienced lecturers, this is the first student-centered textbook to bridge the technical and theoretical aspects of management accounting change. Packed full of pedagogical features, including mini-cases, learning outcomes, key terms, article summaries, key concept boxes, real-world cases, chapter summaries and further reading suggestions and resources, it is clear and accessibly written, covering all the major emerging topics in management accounting theory. Discussing technical developments in management accounting from conventional cost accounting to contemporary strategic management accounting and beyond, in four parts it: shows how conventional cost accounting techniques and management control models evolved in line with the development of mass production and bureaucracy explores how recent developments such as customer and strategic orientations in business, flexible manufacturing, post-bureaucracy, network and virtual organizational technologies implicate in management accounting provides a number of alternative theories through which the transition of management accounting from mechanistic to post-mechanistic approaches can be explained – elaborating both rational and interpretive/critical theories. This excellent text meets a desperate need for an advanced management accounting textbook that incorporates theory and practice and is accessible and engaging for all those studying in this challenging area.

An innovative new valuation framework with truly useful economic indicators The End of Accounting and the Path Forward for Investors and Managers shows how the ubiquitous financial reports have become useless in capital market decisions and lays out an actionable alternative. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. Beyond simply identifying the problem, this report offers a solution—the Value Creation Report—and demonstrates its utility in key industries. New indicators focus on strategy and execution to identify and evaluate a company's true value-creating resources for a more up-to-date approach to critical investment decision-making. While entire industries have come to rely on financial reports for vital information, these documents are flawed and insufficient when it comes to the way investors and lenders work in the current economic climate. This book demonstrates an alternative, giving you a new framework for more informed decision making. Discover a new, comprehensive system of economic indicators Focus on strategic, value-creating resources in company valuation Learn how traditional financial documents are quickly losing their utility Find a path forward with actionable, up-to-date information Major corporate decisions, such as restructuring and M&A, are predicated on financial indicators of profitability and asset/liabilities values. These documents move mountains, so what happens if they're based on faulty indicators that fail to show the true value of the company? The End of Accounting and the Path Forward for Investors and Managers shows you the reality and offers a new blueprint for more accurate valuation.

Only Trends Matter - A step change in management accounting This is not just a book for accountants; it is directed to all managers in all types of organization, commercial, public, charitable or social, that receive regular profit and loss or income and expenditure statements otherwise known as management accounts. They are the most ubiquitous financial report used in the world today. The author is not an academic and all managers, whatever their discipline should be able to relate to it. Although the author was originally a management accountant he spent the majority of his career in general management so has experienced management accounts from both perspectives. As a CEO he recognized that much time was being wasted at board meetings discussing history, prompted by the management accounts and this instigated his research to find a way of transforming management accounts into a modern day and invaluable management tool. There is a dearth of publications addressing the presentation and format of financial information despite the fact that unless it is comprehensible it is of little use as a management report. Some good managers admit that they find numerous columns of numbers difficult to understand and many don't admit it at all. It appears to be a subject that accountants give limited consideration to, and it is staggering that despite monumental changes in business technology the format and content of management accounts has changed little over 50 years or more. The book reveals that management accounts are commonly criticised by managers for being too little, too late to help them manage their day to day activities but criticism of management accounting techniques is not new, Johnson and Kaplan in their renowned book "Relevance Lost: The Rise and Fall of Management Accounting," 1987, could not have phrased it better. "Today's management accounting information, driven by the procedures and cycle of the organization's financial reporting system, is too late, too aggregated, and too distorted to be relevant for managers' planning and control decisions." Whenever presented, management accounts are out of date, they erroneously compare actual performance with a budget which becomes increasingly irrelevant as the financial year progresses, they cumulatively cover a different time period each time they're presented, they fail to consider differing numbers of days in each accounting period so there is no consistency and they take no account of seasonality, they also fail to consider the consequences of what happened in the previous financial year or what is likely to happen in future. This book sets out a system that addresses and solves all these problems with management accounts. If you are persuaded that the system can be of value to you then the book can be used as a practical, detailed guide to its implementation and use in your organization.

This study examines whether accounting changes result in changes in the economic behaviour of financial institutions. The results of several papers examining how banks respond to accounting changes that affect their regulatory capital ratios are consistent with Furfine's (2000) summary that "capital regulation, broadly speaking, can significantly influence bank decision-making." These papers do not attempt to disentangle the effects of capital regulation versus market discipline. This paper examines banks' response to recent changes in accounting for Trust Preferred Securities that effect how these securities are reported in the balance sheet but do not change the calculation of Tier 1 capital. This provides a good setting to examine whether accounting changes induce changes in banks' economic behaviour in the absence of an effect on regulatory capital. I test five hypotheses related to banks' decisions to issue Trust Preferred Stock during the period from 1997 through 2004. Specifically, I examine whether there was an overall decrease in banks' propensity to issue these securities after the accounting change, whether publicly traded banks and those that access the external debt markets were more likely to issue these securities before the accounting change but not after, and whether banks with low regulatory capital ratios and with high marginal tax rates were more likely to issue these securities both before and after the accounting change. The results suggest that accounting changes can lead to changes in banks' economic behaviour even when the change in accounting does not affect regulatory capital calculations. This is consistent with bank managers acting as if they are concerned with the markets' response to the numbers reported after the accounting change.