HND in Business

Unit 5: Management Accounting

Lesson 2

Presenting financial information

By Shan Wikoon
Presenting financial information
Management accounting begins and ends with
conversations. It improves decision-making by
communicating insightful information at all stages of
decision-making.

Good communication of critical information allows

management accounting to cut across silos and
facilitates integrated thinking.

The level of detail and method of communication is

tailored to users of the information, to the decision
under discussion and to different decision styles.
Presenting financial information
Reports should always be based on the concepts of
transparency, prudence, stewardship and reliability,
eliminating:

immaterial information
clutter
jargon
opaqueness
poor navigation.
Presenting financial information
A central role for management accounting is to
make relevant information available to decision-
makers on a timely basis.

The reports should achieve an appropriate balance

between:
past, present and future-related information
internal and external information
financial and non-financial information (including
environmental and social issues).
Presenting financial information
Information is reliable and accessible
Decision-relevant information has integrity. To prepare
data for analysis, it is cleaned, sorted and filtered. Its value
is based on its quality, accuracy, consistency and
timeliness. It is timely in relation to decisions that have
been or will be taken in a given period.

The data is protected to avoid the risks of corruption and

loss. If incomplete or unverified data has to be presented,
it is always flagged as such so that decision-makers can
take a view on the level of confidence they wish to have in
the data.
Presenting financial information
Integrity and ethics
Every effort is made to avoid providing information that
could be misleading or open to misinterpretation. Laws,
codes and regulations should be followed.

Chartered Global Management Accountants are governed

by the professional code of conduct of their respective
issuing body, either the AICPA or CIMA. Both CIMAs and
the AICPAs professional codes are similar and are built
on: Integrity and objectivity; Professional competence and
due care; Confidentiality; Professional behaviour and
conduct.
Management accounting Reports
Cost
reports
Management accounting Reports
Management accounting Reports
Budget
Management accounting Reports
Management accounting Reports
Risk
Management accounting Reports
Management accounting Reports
 End.

About the tutor...

Shan is an experienced HND tutor and assessor who works in London, UK. He has a Degree of Master
of Laws in Law of International Trade - University of Wales, a Diploma in Business Administration, a
Degree of Bachelor of Law and a Diploma in Computing.

If your institution is in London and seeking reliable tutors, please contact Shan on
shanwikoon@gmail.com