MAF Summer 2020

Management Accounting Frontiers

TABLE OF CONTENTS

Editorial: COVID-19 Pandemic and the Case for Research on Traditional Management Accounting Practices

V. G. Sridharan^a, Michael S. C. Tse^b

^aAdelaide Business School, The University of Adelaide, Australia

^bInstitute of Certified Management Accountants, Australia

Year 2020 has been an unexpectedly challenging year for the world. Despite the on-going US-China trade war, the outlook of global economy was positive at the end of 2019. However, the COVID-19 pandemic has plunged the world into the worst economic crisis of the century.

Download: https://doi.org/10.52153/prj1230004

The Role of Strategic Cost Management in Marketing Decisions: A Case Evidence of Brand Acquisition Assessment

Richard Kristoffer S. Manapat^a, V. G. Sridharan^b

^aInstitute of Certified Management Accountants, Australia, and Philippine Institute of Certified Public Accountants, Philippine

^bAdelaide Business School, The University of Adelaide, Australia

Abstract

While the role of strategic cost management (SCM) is heralded to pervade through all the links in a firm’s value-chain (Anderson, 2006; Shank & Govindarajan, 2004) the specific role of SCM in relation to a firm’s marketing function has thus far been limited to a few areas such as product pricing and analysing customer profitability through activity-based cost allocations (Datar & Rajan, 2018; Foster & Gupta, 1994; Van Raaij, 2005). This paper presents a case study to show how SCM concepts can be extended to evaluate brand acquisition by a large organisation. Using shareholder value analysis for pricing the brand and combining with financial statement analysis and strategic positioning models such as Porter’s five forces and SWOT, this paper conducts an assessment in order to offer recommendations for a multi-billion peso investment of a large Philippine-based processed foods company seeking to acquire a new brand.

Keywords: Brand; Shareholder Value Analysis; Strategic Cost Management

Download: https://doi.org/10.52153/prj1117004

A Normative Approach to Valuation, Value Enhancement and Financial Statement Reporting of Intellectual Capital

Michael So^a, Janek Ratnatunga^b

^aBNU-HKBU United International College, China

^bInstitute of Certified Management Accountants, Australia

Abstract

Intellectual capital (IC) is increasingly seen as an integral part of a firm’s value-creating processes and an essential strategic asset in creating corporate sustainable competitive advantage (Bukh, 2003; Chen, Cheng & Hwang, 2005). Nevertheless, reporting on IC is currently inconsistent, incomparable, and incomplete because of a lack of consistent guidance. This paper presents a normative IC valuation and reporting framework based on the Capability Economic Value of Intangible and Tangible Assets (CEVITA^TM) approach (Ratnatunga, Gray & Balachandran, 2004). The proposed framework enables the application of CEVITA^TM to the valuation of intellectual capital capability and provides a theoretical foundation for future empirical studies in relation to IC valuation and reporting.

Keywords: Capability Economic Value of Intangible and Tangible Assets; Intellectual Capital; Valuation

Download: https://doi.org/10.52153/prj1022004