Evaluating the potential of management accounting : a value-adding perspective in the Maltese context

Abstract

In order for the management accounting profession to meet leading enterprises' needs to translate their broad visions into specific operational targets, management accountants need to step out of the box of accounting. The need for this increases alongside the increase in business complexity. Thus, in order for the management accounting profession to reach this expectation, management accountants need to take a proactive approach beyond traditional management accounting and strive to enhance creation of value within enterprises. This dissertation analyses the local environment and discovers the most influencing factors that motivate or hinder the potential of the management accountants in their leap towards a proactive approach to management accounting. The study also analyses local areas through which management accounting has a potential to create value and the way in which management accountants exploit them The study shows that although all interviewees feel that management accounting is central to the long-term success of Maltese enterprises, one can conclude that the process of management accountants leaping into this proactive approach is still happening at a slow rate in certain areas with a potential to create value. However the study also showed that this is to be expected considering the nature of the Maltese business environment as well as what the transition the Maltese industry has been and still is experiencing.