Management Accounting Frontiers
TABLE OF CONTENTS
Editorial to the First Issue of Management Accounting Frontiers
By V. G. Sridharan, Michael S. C. Tse
On behalf of the Editorial Board, we are delighted to present the inaugural issue of Management Accounting Frontiers (MAF). As the flagship research journal of the Institute of Certified Management Accountants, MAF strives to facilitate the development of new and cutting-edge research themes in management accounting by encouraging open communication between academicians and practitioners. To achieve its objective, MAF welcomes not only empirical studies but also high quality theoretical works including literature reviews and normative articles that offer novel and fresh perspectives to issues important to management accounting research and practice.
The three articles featured in this issue reflect the broad range of interests of this journal. The first article, by G. K. Laing, studies the intensity of the contribution management accounting innovations have had in the academic literature. Based on an approach derived from seismic measurement of earthquakes, a new measurement model is developed and applied in the measurement of intensity of contributions of Balanced Scorecard, Activity Based Cost Accounting and Lean Accounting in literature.
The second article, by M. So, explores the issue of recognising intellectual capital in organisations. After a review of extant intellectual capital valuation models, the author proposes a framework of intellectual capital valuation and reporting based on organisational capabilities.
The third article, by C. A. Tilt, M. Xydias-Lobo, F. Rodricks, and G. Reynolds, presents a comparative investigation of perceptions of Integrated Reporting in Australia and Hong Kong. The authors examine the perceptions of readiness and acceptance of Integrated Reporting in Australia and Hong Kong through interviewing accounting professional associations and firms regarding their awareness of and attitudes towards Integrated Reporting.
The publication of this issue is the result of considerable efforts of the members of MAF Editorial Board. Their generous support is invaluable.
We hope you will enjoy reading our first issue and find these articles useful to stimulate your research and practice in management accounting.
Seismic Measurement of Management Accounting Innovations: Using the Scale of Innovation Intensity
By Gregory K. Laing
The purpose of this paper is to determine the intensity of the contribution of Balanced Scorecard (BSC), Activity Based Costing (ABC), and Lean Accounting (LA) have had in the academic literature. An approach that is derived from Seismic measurement of earthquakes is adopted to produce what has been labelled the Scale of Innovation Intensity model. The three innovations were found to have measures of intensity that fall within the medium level of intensity. The findings support the arguments that the three management accounting innovations have had an influence on the direction of management accounting. This paper also provides a general overview of the application of the scale of innovation intensity and its potential for future research.
Keywords: Activity Based Costing; Balanced Scorecard; Innovation Intensity; Lean Accounting; Management Accounting Innovations
Management Knowledge Assets: A Review of the Models Used to Measure and Report Intellectual Capital
By Michael So
Contemporary organisations in both public and private sector are often examined not only in terms of their core functional business but also in how they have adapted to a knowledge-based and innovation-driven economy. As such, knowledge-based assets are considered as a source of sustainable advantage.
The magnitude of change in the proportion of value creation by these intangible investments has caused a paradigm shift and the recognition of an increasingly important role for intellectual capital (IC). There is also a growing interest in developing business reporting models that are more comprehensive than that of traditional accounting-based reporting, which has been shown to be inadequate to report the value of intellectual capital.
Researchers and academics have attempted to build models for IC reporting. In this paper, eleven IC measurement models are critically reviewed and a framework of IC valuation and reporting based on capabilities is suggested. The capabilities enhanced by IC could be reported in combination with the tangible assets in an IC capability balance sheet. The IC capability model offers a clear starting point for a new thinking in evaluating intangible assets as a firm business resource.
Keywords: Intellectual Capital; Knowledge Assets; Valuation
Integrated Reporting & Sustainability: A Note on Perceptions of the Accounting Profession
By Carol A. Tilt, Maria Xydias-Lobo, Flavia Rodricks, Giao Reynolds
This study provides a preliminary investigation of perceptions of Integrated Reporting (IR) in Australia, as a developed country and leader in this area, and Hong Kong as an Asian country with an advanced capital market. The study compares the perceptions of IR readiness and acceptance in Australia and in Hong Kong through interviewing accounting professional associations and firms regarding their awareness of, and attitudes towards, IR. In particular, this study considers the perceptions of interviewees about the relationship between IR and Sustainability Reporting. Findings of the study suggest that the profession is taking a narrow, and explicitly financial, interpretation of the IIRC framework and does not consider it to be a replacement for other types of reporting.
Keywords: Australia; Hong Kong; Integrated Reporting; Sustainability Reporting