ASSIGNMENT 2

Conclusion

As we all know, DiGi.Com Berhad (DiGi) is an investment holding company. The Company is
primarily engaged in the provision of mobile communication services and its related products in
Malaysia. Its subsidiaries are engaged in the establishment, maintenance and provision of
telecommunications and related services, and property holding, renting of premises and other
related services.

At the same time, Celcom Axiata Berhad, DBA Celcom, is the oldest mobile
telecommunications company in Malaysia. Celcom is one of a member of the Axiata group of
companies.

As a telecommunications company, through a five-year data report. We know that competing

companies everywhere. Summary that is competing technology.

Information technology is very important in all industries especially Celcom, the oldest
telecommunications company in Malaysia. Without information technology, it will be very hard
for people to reach out with each other. To conclude, Celcom is one of the market leaders in the
industry. Currently Celcom provides many products and services that suites different customer
needs, ranging from economic, business, and family and leisure satisfaction. Without
information technology, Celcom will not be able to grow and become one of the most successful
companies as it is right now. In addition, information technology does affect its daily operation
as it makes the business process more convenient, organized and save more time. Moreover, as
more and more Malaysians look for ways to keep in touch with each other, Celcom’s popularity
and quality services has helped draw more customers to the company through customer
relationship and brand loyalty as well as able to compete with other industries such as Maxis,
Digi and uMobile for a better network coverage and generate more revenues in the future.

Recommendation

In order to compete with their competitors and survive in the market place, Celcom need to make
sure that their system and managing is the best among the others. The first recommendation to

Page 1 of 16
improve the business of Celcom is by build their system effectively and efficiently. It can be
achieved by study of the internal and external environment of market place.

By using this method, Celcom can improve their sales and productivity. For example, other than
using IT Help Desk to improve internal environment, Celcom also can modify their process flow
and notifications so that it can be faster and easier.

Besides that, Celcom also need to improve their coverage. There are a few areas that still face
with the problem of coverage. Do the case study more frequently to recognize the changes that
happen in the public. Increase the limitation for every base station if necessary in order to make
customers can excess to the internet more easily without coverage problem.

The other recommendation is by create and increase the loyalty of the customers. Celcom can
make a loyalty program such as a special club for their user. Offer more discount to the customer
by creating a Celcom customer card. The longer the customers stay using Celcom, the more they
will get the discount. So, by using this method customer will be more interest to Celcom rather
than others.

On the other hand, mobile financial service offer three ways which are 188Mobile, Mobile
Banking and Mobile Payment. With 188Mobile, customers can get stock information in their
mobile phone whenever they require. These include real-time prices, summary snapshot, in-
depth details, intraday charting, stock tracker and multiple viewing options. They also receive
access to OSK research, and market breaking news. Celcom mobile banking solutions offer
customers unrivalled convenience to check account summary, perform bill payment, transfer
funds, and many more. Recently, Celcom introduce a new mobile payment known as Wireless
EFTPOS. It is a new wireless payment system that is fast to set up and ideal for point-of-sales
transaction, allowing customers to make payment whenever and wherever they may be.

ASSIGNMENT 3

Contents

Page 2 of 16
pg

1.0 Introduction
1

2.0 Integrated Reporting definition

1

2.1 Management Accountant

2

2.2 Management accounting role in organization

3

2.3 How Management Accountant assisting the organization in being sustainable

4

3.0 Importance of an accountant/finance manager

5

3.1 The required qualities of accountant/finance manager

5

4.0 Importance of accountant/finance manager and Integrated Reporting in assisting an

organization

5.0 Accountant/finance manager will face in challenge

8

5.1 Accountant/finance manager will face in adjusting

10

Page 3 of 16
6.0 Conclusion
11

References

1.0 Introduction

In this chapter, we examine the role of management accounting within a business. To understand
the context for management accounting we begin by considering the nature and purpose of a
business. Thus, we first consider what businesses seek to achieve, how they are organized and
how they are managed. Having done this, we go on to explore how management accounting
information can be used within a business to improve the quality of managers’ decisions. We
also identify the characteristics that management accounting information must possess to fulfill
its role. Management accounting has undergone many changes in response to developments in
the business environment and in business methods.

The job will be to analyze the following important elements: (1) Integrated Reporting
definition (2) Management Accountant (3) Management accounting role in organization (4)
How Management Accountant assisting the organization in being sustainable (5) Importance of
an accountant/finance manager (6) The required qualities of accountant/finance manager (7)
Importance of accountant/finance manager and Integrated Reporting in assisting an organization
(8) Accountant/finance manager will face in challenge (9) Accountant/finance manager will face
in adjusting (10) Conclusion

2.0 Integrated Reporting definition

Page 4 of 16
Integrated reporting <IR> is a "process that results in communication, most visibly a periodic
“integrated report”, about value creation over time. An integrated report is a concise
communication about how an organization’s strategy, governance, performance and prospects
lead to the creation of value over the short, medium and long term."

It means the integrated representation of a company’s performance in terms of both financial and
other value relevant information. Integrated Reporting provides greater context for performance
data, clarifies how value relevant information fits into operations or a business, and may help
embed long-termism into company decision making. While the communications that result from
<IR> will be of benefit to a range of stakeholders, they are principally aimed at providers of
financial capital allocation decisions.

2.1 Management Accountant

Also known as corporate accountants, management accountants work within one specific
company.

The role of the management accountant is to perform a series of tasks to ensure their company's
financial security, handling essentially all financial matters and thus helping to drive the
business's overall management and strategy.

Management accountants are key figures in determining the status and success of a company.
Some choose to become a Certified Management Accountant (CMA), a similar credential to
CPA, but with a greater focus on cost accounting, financial planning, and management issues.

2.2 Management accounting role in organization

The purpose of management accounting in the organization is to support competitive decision

making by collecting, processing, and communicating information that helps management plan,
control, and evaluate business processes and company strategy. The interesting thing about
management accounting is that it is rare to find an individual within a company with the title of
“management accountant.” Often many individuals function as accountants within the
organization, but these individuals typically operate as financial accountants, costs accountants,
tax accountants, or internal auditors. However, the ability to develop and use good management
accounting (which covers a lot more ground than the product costing done by cost accountants)

Page 5 of 16
is actually an important ability for many individuals, including finance professionals, operational
and marketing managers, top-level executives, and information technologists.

Generally, in a very large company, each division has a top accountant called the controller, and
much of the management accounting that is done in these divisions comes under the leadership
of the controller. On the other hand, the controller usually reports to the vice president of
finance for the division who, in turn, reports to the division’s president and/or overall chief
financial officer (CFO). All of these individuals are responsible for the flow of good accounting
information that supports the planning, control, and evaluation work that takes place within the
organization.

2.3 How Management Accountant assisting the organization in being sustainable

1. Providing Information for Decision Making and Planning, and Proactively Participating as
Part of the Management Team in the Decision-Making and Planning Processes

2. Assisting Managers in Directing and Controlling Operational Activities

Directing and controlling day-to-day operations require a variety of data about the process of
providing entertainment services.

Managerial accounting information often assists management through its attention-directing

function. Managerial accounting reports rarely solve a decision problem. However, managerial
accounting information often directs managers’ attention to an issue that requires their skills.

3. Motivating Managers and Other Employees Toward the Organization’s Goals

Organizations have goals. However, organizations comprise people who have goals of their own.
The goals of individuals are diverse, and they do not always match those of the organization. A
key purpose of managerial accounting is to motivate managers and other employees to direct
their efforts toward achieving the organization’s goals. One means of achieving this purpose is
through budgeting.

One way in which employees can be motivated toward the organization’s goals is through
empowerment. Employee empowerment is the concept of encouraging and authorizing workers

Page 6 of 16
to take the initiative to improve operations, reduce costs, and improve product quality and
customer service.

4. Measuring the Performance of Activities, Subunits, Managers, and Other Employees Within
the Organization

One means of motivating people toward the organization’s goals is to measure their performance
in achieving those goals. Such measurements then can be used as the basis for rewarding
performance through positive feedback, promotions, and pay raises. For example, most large
corporations compensate their executives, in part, on the basis of the profit achieved by the
subunits they manage. In other companies, executives are rewarded on the basis of operational
measures, such as product quality, sales, or on-time delivery.

In addition to measuring the performance of people, the managerial accounting system measures
the performance of an organization’s subunits, such as divisions, product lines, geographical
territories, and departments. These measurements help the subunits’ managers obtain the highest
possible performance level in their units. Such measurements also help top management decide
whether a particular subunit is a viable economic investment.

5. Assessing the Organization’s Competitive Position, and Working with Other Managers to
Ensure the Organization’s Long-Run Competitiveness in Its Industry.

Nowadays the business environment is changing very rapidly. These changes are reflected in
global competition, rapidly advancing technology, and improved communication systems, such
as the Internet. The activities that make an enterprise successful today may no longer be
sufficient next year. A crucial role of managerial accounting is to continually assess how an
organization stacks up against the competition, with an eye toward continuously improving.

3.0 Importance of an accountant/finance manager

An account manager (Sales) is a person who works for a company and is responsible for the
management of sales, and relationships with particular customers. The account manager does not
manage the daily running of the account itself. They manage the relationship with the client of

Page 7 of 16
the account(s) they are assigned to. Generally, a client will remain with one account manager
throughout the duration of hiring the company. Account managers serve as the interface between
the customer service and the sales team in a company. They are assigned a company's existing
client accounts. The purpose of being assigned particular clients is to create long term
relationships with the portfolio of assigned clients. The account manager serves to understand the
customer's demands, plan how to meet these demands, and generate sales for the company as a
result.

One of the most important functions in any company is that of the finance manager. For those
who are uninformed, they tend to think the sole function of this position is that of the head of
Accounts Payable and Accounts Receivable, but it goes far beyond that capacity. In fact, the
finance manager is in charge of any financing and accounting function throughout the company.

The role of this position involves that of not only financing functions such as Accounts Payable,
Accounts Receivable, and Billing, but it also involves that of budget projections and working
with the Chief Financial Officer to make sure that the company's funds are stable and assisting
with any budget cuts that become necessary.

The finance manager is the head of both the Accounts Payable and Accounts Receivable areas of
the company. As such, he will be the one to set policy and direct procedures for both areas of
business. That includes hiring staff based upon need, following budget guidelines for expenses
including staffing, assuring that procedures are followed by all staff members, setting reasonable
quota system to assure work is completed in a timely fashion, and interacting with department
supervisors on a regular basis in order to stay abreast of happenings within the department.

The finance manager will also compile reports that show all of the conditions within his
department including expenditures, open invoices, production standards, quality control
standards, and timeliness of both payment of invoices and processing of payments. The finance
manager is also responsible for the billing operation of the Accounts Receivable Department and
making sure that guidelines for timely billing are followed as well.

3.1 The required qualities of accountant/finance manager

Page 8 of 16
An account manager is a sales professional who performs a variety of duties aimed at managing
his employer’s client relationships, as well as developing new business from existing clients. In
most environments, a business development executive actively seeks out new clients. Once the
client has come aboard, the account manager takes over. Account managers are employed across
a wide variety of industries including advertising, financial services and media. As with most
sales roles, these account managers are typically compensated with a base salary plus a
commission based upon the amount of revenue generated.

Client Communication

An account manager often serves as the face of her company. In most cases, she is the primary, if
not only, company representative who communicates with clients. As a result, it is important for
her to deliver a positive customer service experience. This is accomplished by listening to each
client in order to gain an understanding of their individualized needs, in order to direct them to
the appropriate product or service. It is important for the account manager to manage the
expectations of her clients; when disruptions occur during the service delivery process, it is
imperative that she work to resolve situations quickly, as her goal is to win their repeat business.

Quotas

In most organizations, an account manager must maintain or exceed a minimum amount of sales.
This number is called a quota, which is communicated to him by a sales manager. Quite often,
his compensation directly corresponds with his ability to meet this requirement. In addition to
commission, it is not uncommon for deferred compensation such as financial bonuses or valuable
merchandise to be awarded to those account managers who exceed their quota. Failure to meet
this requirement may result in an account manager being put onto performance probation.
Repeated failure typically leads to termination.

Reporting

An account manager is often required to prepare various reports surrounding the metrics of the
sales department: quarterly sales results, annual forecasts and account status reports are just a
few examples. Once created, these documents are presented to senior management. Although an
account manager may rely on the support of an administrative professional, such as a sales

Page 9 of 16
coordinator, to perform this task, it is not uncommon for her to perform this duty herself,
particularly if he is employed in a smaller organization or at a lower professional level.
Knowledge of computer programs such as Microsoft Excel is typically required to complete
reporting tasks

4.0 Importance of accountant/finance manager and Integrated Reporting in assisting an

organization

The finance manager also is the one who will work with other executives in order to develop the
budget for each year. He will work with the Chief Finance Officer and Chief Executive Officer
in order to develop an equitable solution for each year's expenditures in both staff, office
supplies, and any other needs that they company has including training, business trips, out of
town meetings, and staff entertainment expenses. The finance manager has a very important
position within a company, and his decisions will determine the financial stability of the
company, at least within the areas that fall under his control. It is also his job to make certain that
other departments and areas of the company follow their budgets and make the most use of the
company's money by avoiding frivolous expenses.

A financial manager is responsible for providing financial advice and support to colleagues and
clients to enable them to make sound business decisions. The role of the financial manager is
more than simply accounting; it is multifunctional. Financial managers must understand all
aspects of the business so that they are able to adequately advise and support the chief executive
officer in decision-making and ensuring company growth and profitability.

Almost every firm, government agency, or other type of organization has one or more financial
managers. Financial managers oversee the preparation of financial reports, direct investment
activities, and implement cash management strategies. They also implement the long-term goals
of their organization.

Many corporations operate multifunctional teams where the financial manager is responsible for
a particular division or function, or looks after a range of departments and functions. Financial
managers often have specific roles and titles:

Page 10 of 16
Controllers prepare financial reports and analyses of future earnings or expenses that summarize
the organization’s financial position. Controllers are also in charge of preparing special reports
required by regulatory authorities—especially important because of the Sarbanes–Oxley Act,
designed in part to protect investors from fraud.

Treasurers and finance officers direct and oversee budgets, monitor the investment of funds,
manage associated risks, supervise cash management activities, execute capital raising strategies,
and deal with mergers and acquisitions.

Risk and insurance managers administer programs to minimize risks and losses that could arise
from financial transactions and business operations.

Credit managers supervise the firm’s issuance of credit, fix credit-rating criteria, determine credit
limits, and monitor the collection of past-due accounts.

Cash managers supervise and manage the flow of cash receipts and disbursements to meet
business and investment needs.

The financial manager’s role, particularly in business, is changing in response to technological

advances that have significantly reduced the time it takes to produce financial reports. Financial
managers now perform more data analysis to offer senior management ideas on how to maximize
profits. They play an increasingly significant role in mergers and acquisitions and in related
financing, and in areas that require wide-ranging, focused knowledge to diminish risks and
maximize profit.

5.0 Accountant/finance manager will face in challenge

Keeping up with the market

Market research isn't something you do as a one-off when you launch your business. Business
conditions change continually, so your market research should be continuous as well. Otherwise
you run the risk of making business decisions based on out-of-date information, which can lead
to business failure. The more you succeed, the more competitors notice - and react to - what you
are doing. A market-leading offer one day may be no better than average a few months

Page 11 of 16
later.Apparently loyal customers can be quick to find alternative suppliers who provide a better
deal.

As products (and services) age, sales growth and profit margins get squeezed. Understanding
where your products are in their lifecycles can help you work out how to maximise overall
profitability. At the same time, you need to invest in innovation to build a stream of new,
profitable products to market.

Information sources

Published information can provide useful insights into market conditions and trends. As a
growing business, your own experience can be even more valuable.

You should be able to build up an in-depth picture of what customers want, how they behave and
which of your marketing approaches work best.

Taking the time to talk to key customers pays off. Your suppliers and other business partners can
be important sources of market information. You should encourage your employees to share
what they know about customers and the market. Effective IT systems can also make it easier to
share and analyse key information such as customers' purchasing behaviour and preferences.

You may want to carry out extra research as well - for example, to test customer reaction to a
new product. You might do this yourself, or use a freelance researcher or market research
agency.

Cash flow and financial management

Good cash flow control is important for any business. For a growing business, it's crucial - cash
constraints can be the biggest factor limiting growth and overtrading can be fatal

Making the best use of your finances should be a key element in business planning and assessing
new opportunities. With limited resources, you may need to pass up promising opportunities if
pursuing them would mean starving your core business of essential funding.

Page 12 of 16
Every element of working capital should be carefully controlled to maximise your free cash
flow. Effective credit management and tight control of overdue debts are essential. You may also
want to consider raising financing against trade debts.

Good stock control and effective supplier management tend to become increasingly important as
businesses grow. Holdings of obsolete stock may become a problem that needs periodic clearing
up. You may want to work with suppliers to reduce delivery cycles, or switch to suppliers and
systems that can handle just-in-time delivery.

Planning ahead helps you anticipate your financing needs and arrange suitable funding. For
many growing businesses, a key decision is whether to bring in outside investors to provide the
equity needed to underpin further expansion.

Problem solving

New businesses often run in perpetual crisis mode. Every day brings new challenges that
urgently need resolving and management spends most of their time troubleshooting.

As your business grows, this approach simply doesn't work. While a short-term crisis is always
urgent, it may not matter nearly as much as other things you could be doing. Spending your time
soothing an irritated customer might help protect that one relationship - but focusing instead on
recruiting the right salesperson could lay the foundations of substantial new sales for years to
come

As your business grows, you also need to be alert to new problems and priorities.

For example, your business might be increasingly at risk unless you take steps to ensure your
intellectual property is properly protected.

If you are focusing on individual marketing campaigns, you might need to devote more resources
to developing your brand.

Identifying the key drivers of growth is a good way of understanding what to prioritise.

Page 13 of 16
A disciplined approach to management focuses on leading employees, developing your
management team and building your business strategy. Instead of treating each problem as a one-
off, you develop systems and structures that make it easier to handle in the future.

5.1 Accountant/finance manager will face in adjusting

Adjusting entries are accounting journal entries that convert a company's accounting records to
the accrual basis of accounting. An adjusting journal entry is typically made just prior to issuing
a company's financial statements.

There are two scenarios where adjusting journal entries are needed before the financial
statements are issued:

•Nothing has been entered in the accounting records for certain expenses or revenues, but those
expenses and/or revenues did occur and must be included in the current period's income
statement and balance sheet.

•Something has already been entered in the accounting records, but the amount needs to be
divided up between two or more accounting periods.

Adjusting entries almost always involve a

•balance sheet account (Interest Payable, Prepaid Insurance, Accounts Receivable, etc.) and an

•income statement account (Interest Expense, Insurance Expense, Service Revenues, etc.)

If you want to minimize the number of adjusting journal entries, you could arrange for each
period's expenses to be paid in the period in which they occur. For example, you could ask your
bank to charge your company's checking account at the end of each month with the current
month's interest on your company's loan from the bank. Under this arrangement December's
interest expense will be paid in December, January's interest expense will be paid in January, etc.
You simply record the interest payment and avoid the need for an adjusting entry. Similarly,
your insurance company might automatically charge your company's checking account each
month for the insurance expense that applies to just that one month.

Page 14 of 16
6.0 Conclusion

Management accounting plays a key role in organizations today. The top accountant in most
organizations is the controller. All accounting functions report to this individual, including the
cost accountants, the financial and tax accountants, the internal auditors, and systems support
personnel. Though much management accounting originates within these positions, all decision
makers in the organization must understand how to create and use good management accounting
information. Management accounting is also being significantly affected by dramatic
improvements in computer technology. Today’s technology allows management to track
performance information that goes beyond the cost-based information of historic general ledger
systems. Good management accounting involves a responsibility to manage a wide variety of
critical information. Hence, those involved need to anticipate and be prepared to deal with
various ethical dilemmas. And finally, though we’ve used DuPont as the example company in
this chapter, you need to understand that management accounting is not just for manufacturing
companies. Service and merchandising industries represent a much larger portion of the U.S.
economy than does the manufacturing industry. Further, the advent of the Internet and e-
commerce is bringing dramatic changes to many companies and industries.

References

[1] Eccles, R.G., Krzus, M. (2010) One Report: Integrated Reporting for a Sustainable Strategy, Wiley,
New Jersey, USA.

[2] Black, Fischer and Myron S. Scholes (1973). The Pricing of Options and Corporate Liabilities,
Journal of Political Economy, 81(3), 637-654.

[3]Blum, J. 1999. Do Capital Adequacy Requirements Reduce Risks in Banking? Journal of Banking &
Finance. 23, 755-771.

[4]Bris, A., S. Cantale. 1998. Bank Capital Requirements and Managerial Self-Interest. Working Paper.

[5]Buser, S.A., A.H. Chen, and E.J. Kane, (1981), “Federal Deposit Insurance, Regulatory Policy and
Optimal Bank Capital,” Journal of Finance, 36, 51-60

Page 15 of 16
[6]Accounting Research Bulletins No. 7 Reports of Committee on Terminology (Report). Committee on
Accounting Procedure, American Institute of Accountants. November 1940. Retrieved December 31,
2013.

[7]Jump up ^ Peggy Bishop Lane on Why Accounting Is the Language of Business, Knowledge @
Wharton High School, September 23, 2013, retrieved December 25, 2013

[8] Jump up ^ "Department of Accounting". Foster School of Business. Foster School of Business. 2013.
Retrieved 31 December 2013.

Page 16 of 16