Financial Reporting And Management

GAL. produces: Journal voucher listing: provides relevant details about each Journal voucher posted to the GAL. GAL. change report: presents effects of journal voucher posting to the GAL. accounts Taxonomy creation: taxonomy may be generated incorrectly, which results in an incorrect mapping between data and taxonomy elements that could result in material misrepresentation of financial data Taxonomy mapping error: mapping internal database accounts to taxonomy tags need to be controlled Validation of instance documents: independent verification procedures established to ensure appropriate taxonomy and tags have been applied before posting to web server MRS. Factors of influence: management principles; management function, level, and decision type; problem structure; types of management reports; responsibility accounting; and behavioral consideration Management principles: formalization of asks, responsibility and authority span of control, and management by exception Formalization of tasks: management should structure the firm around the tasks it performs rather than around individuals with unique skills.

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To avoid an organizational structure in which the organization’s performance, stability, and continued existence depend on specific individuals Responsibility and authority: responsibility is an individual’s obligation to achieve desired results. If manager delegates responsibility to a subordinate, must also grant the subordinate the authority to make decisions within the limits of that responsibility Span of control: umber of subordinates directly under his control Narrower: fewer subordinates reporting directly to managers, several layers of management. Managers closely involved with the details of the operation and with specific decisions Management by exception: managers should limit their attention to potential problem areas rather than being involved with every activity or decision Management function, level, and decision type: Strategic planning: top level managers.

Set goals and objectives of the firm, determine scope of business, setting management philosophy… Tactical planning ND decisions: subordinate to strategic decisions and are made by middle managers. Decisions are shorter term, more specific Management control decisions: middle management decisions to motivate managers in all functional areas to use resources productively Operational control decisions; ensures that the firm operations in accordance with pre-established criteria. Narrower, more focused than tactical decisions, concerned with routine operations * Standards, performance evaluations (variance), corrective actions taken Problem structure: reflects how well the decision maker understands the problem.

Three elements Data: values used to represent actors that are relevant to the problem Procedures: sequence of steps or decision rules used in solving the problem Objectives: results the decision maker desires to attain by solving the problem A if all three known with certainty, problem is structured (like payroll) Unstructured problems: any of the three characteristics are not known with certainty. No precise solution techniques Generally: lower levels of management deal more with fully structured problems, whereas upper management deals with unstructured problems. Middle level managers tend to work with partially structured problems Types of management reports:

Report objectives: 1) to reduce the level of uncertainty associated with a problem facing the decision maker and 2) to influence the decision maker’s behavior in a positive way Programmed reporting: Scheduled reports: according to an established time frame On demand reports: triggered by events Report attributes: timeliness, relevance, accuracy, completeness, conciseness, summarization Ad hoc reporting: technology that provides direct inquiry and report generation capabilities Data mining: process of selecting, exploring, and modeling large amounts of data to uncover relationships and global patterns that exist in large databases but are hidden among the vast amount of facts (data queries and artificial intelligence) Data warehouse: archived operational data. Centralized relational database management system that has been designed specifically to meet the needs of data mining.

Contains operational data about current and old events Verification model: drill-down technique to either verify ore reject a user’s hypothesis Discovery model: uses data mining to discover previously unknown but important importation that is hidden within data Responsibility accounting: every economic event that effects the organization is the responsibility of and can be traced to an individual manager Setting financial goals: budgets. Measuring Reporting performance: responsibility reports Responsibility centers: Cost enters: have responsibility for cost management with budgetary limits. Profit center: manager as responsibility for both cost control and revenue generation (decisions about level of advertising, prices to charge, size of staff Investment center: general authority to make decisions that profoundly affect organization.