Managerial Risk Accounting - Subject

Subject

As a part of the management accounting system and function, managerial risk accounting has the following two main purposes:

  • decision-facilitating or decisions-making
  • decision-influencing or stewardship

These purposes are achieved by providing respectively relevant information to improve the ability and willingness of the employees to achieve the organisations’s goals and objectives. For the purpose of decision facilitation, decision makers should be provided with an accounting representation of the state-act-outcome set of the decision. Especially, it is necessary to provide statements concerning the likelihood or probability of states and outcomes. For the purpose of stewardship, it is necessary to provide information on the risks taken and their relation to the risk bearing capability of organisation as well as their relationship to the return generated.

Read more about this topic:  Managerial Risk Accounting

Famous quotes containing the word subject:

    But when the bowels of the earth were sought,
    And men her golden entrails did espy,
    This mischief then into the world was brought,
    This framed the mint which coined our misery.
    ...
    And thus began th’exordium of our woes,
    The fatal dumb-show of our misery;
    Here sprang the tree on which our mischief grows,
    The dreary subject of world’s tragedy.
    Michael Drayton (1563–1631)

    Lord, Lord, how subject we old men are to this vice of lying!
    William Shakespeare (1564–1616)

    There is no subject on which more dangerous nonsense is talked and thought than marriage.
    George Bernard Shaw (1856–1950)