Accounting

“Some companies are replacing traditional budgeting with alternative performance measurement systems as they argue that budgets can impede the allocation of resources and encourage myopic decision making. Given the many calls for improvement, it seems strange that the vast majority of firms choose to retain a formal budgeting process”. Discuss

The presentation is expected to last about 10 – 13 minutes.

Please use PowerPoint slides for your presentation.<I will do myself, so it is no need to prepare the power point for me. Please mark down all the reference which you have used. Use literature as much as you can.>

Assessment Criteria

How you are assessed is very important to you and to us and the assessment criteria is attached here. This section helps to explain what these criteria mean.

(i) Subject Coverage – this is quite straightforward and reflects the extent to which you have covered the subject area. If you are asked to refer to 2 countries, for example, in a question on comparing management accounting systems in different countries, and you only refer to one, then, clearly, you have not covered the subject area very well. If you refer to 2 countries but only show a very surface knowledge of the system with no detail then, again, you have not covered the subject area very well. 20% of the presentation mark is devoted to this section

(ii) Analysis – the most important part of your presentation. This section refers to the way you have analysed the literature you have read on the subject area and developed your evaluation of that literature. The area of evaluation is well covered in the level 4 induction material – remember, at core, it is about what Mr A said, what Mrs B. said, etc. You MUST refer to the authors you have read here – you MUST explain what they have said. You MUST cite your sources! (Name and date on the slide with the full reference as a footnote to the slide or on separate slides at the end of the presentation.) If you don’t, you

make it very difficult for us to pass you in this section. So, when you are presenting, tell us what Kaplan & Norton (1992) said about the Balanced Scorecard, and what Atkinson et al (1997) and Norreklit (2000) found. We need to see your references, and your evaluation of the contribution that has been made. 40% of the presentation mark is devoted to this section

So, the marking criteria in summary:

SUBJECT COVERAGE 20%

ANALYSIS 40%

CLARITY OF SPEECH 10%

PRESENTATION STYLE 30%

Lecture 4: Developments in Budgeting

Content

Usefulness of budgets and the influence of computer systems in budgeting.

Problems with budgets. Can rolling budgets help to resolve the problems?

Changes made by companies to their budgeting process involving:

The need to free people from the burden of budgeting work so that they can focus on driving value.

Diverting the focus to customers, drivers of performance, strengths and opportunities, people, brands etc.

Changes to budgeting in the public sector.

Reading List

Articles

Cassell M (1999), ‘Budgeting and more…’, Management Accounting, (Sep), pp22-23

http://proquest.umi.com/pqdweb?did=44541617&sid=1&Fmt=6&clientId=18443&RQT=309&VName=PQD

Cassell M (2003), ‘Can we Budge it?’, Financial Management (Nov), pp 24-25

http://proquest.umi.com/pqdweb?did=467066321&sid=1&Fmt=6&clientId=18443&RQT=309&VName=PQD

Christensen P, McElravy J & Miranda R. (2003), ‘What’s Wrong With Budgeting?’, Government Finance Review, (Oct), pp11-20

http://find.galegroup.com/itx/infomark.do?contentSet=IAC-Documents&docType=IAC&type=retrieve&tabID=T002&prodId=EAIM&docId=A109029607&userGroupName=napier&version=1.0&source=gale

CIMA and ICAEW (2004) ‘Better Budgeting’ A report on the better budgeting forum from CIMA and ICAEW, (Jul)

http://www.cimaglobal.com/cps/rde/xbcr/live/betterbudgeting_techrpt_2004.pdf

Fraser R & Bunce P (1997), ‘Beyond Budgeting…’, Management Accounting, (Feb) p6

http://proquest.umi.com/pqdweb?did=11143341&sid=3&Fmt=6&clientId=18443&RQT=309&VName=PQD

Hanson S, Otley D & Van der Stede W (2003), ‘Practice Developments in Budgeting: An Overview and Research Perspective’, Journal of Management Accounting Research, Vol 15, pp 95-116

http://find.galegroup.com/itx/infomark.do?contentSet=IAC-Documents&docType=IAC&type=retrieve&tabID=T002&prodId=EAIM&docId=A112905012&userGroupName=napier&version=1.0&source=gale

Hope J & Fraser R (1998), ‘Measuring performance in the new organisational mode’, Management Accounting, (Jun) p6

http://proquest.umi.com/pqdweb?did=30420187&sid=2&Fmt=6&clientId=18443&RQT=309&VName=PQD

Hope J & Fraser R (1999), ‘Beyond Budgeting: building a new management model for the information age’, Management Accounting, (Jan) p16-21

http://proquest.umi.com/pqdweb?did=38205200&sid=1&Fmt=6&clientId=18443&RQT=309&VName=PQD

Hope J & Fraser R (2000), Beyond Budgeting, Strategic Finance, (Oct), pp30-35

http://proquest.umi.com/pqdweb?did=69153546&sid=6&Fmt=6&clientId=18443&RQT=309&VName=PQD

Hope J & Fraser R (2001), ‘Figures of Hate, (beyond budgeting’, Financial Management, (Feb), pp22

http://proquest.umi.com/pqdweb?did=69153546&sid=4&Fmt=6&clientId=18443&RQT=309&VName=PQD

Krell E (2003), ‘Forecasting a Future without a Budget’, Internet World, (Jun), pp14-15 https://ezp.napier.ac.uk/login?url=http://search.proquest.com/docview/194796226?accountid=16607

Myers R (2001), ‘Budgets on a roll: recalculating a business’s outlook several times a year’, Journal of Accountancy, (Dec), pp41-46

http://find.galegroup.com/itx/infomark.do?contentSet=IAC-Documents&docType=IAC&type=retrieve&tabID=T002&prodId=EAIM&docId=A12143722&userGroupName=napier&version=1.0&searchType=AdvancedSearchForm&source=gale