Open AccessThe Emerging Authority Of Statements On Management Accounting
Author(s) -
Jonathan B. Schiff,
Charles J. Penino
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v7i1.6264
Subject(s) - accounting , management accounting , business , accounting standard , accounting information system , public relations , political science , accounting management
Armco Inc. v. Comr. demonstrated that the accounting profession needs a source of authoritative guidance in management accounting. Statements on Management Accounting (SMA) offer consensus guidelines and definitions established and approved by a diverse group of accounting professionals and other members of the business community. SMAs provide a source of guidance that can outweigh other accounting literature that generally represents just one or two authors, or even an accounting firms, opinion. It is imperative for the accounting profession to continue to develop detailed guidance for accounting and reporting practice. If we dont, the judicial system may fill this gap. This article has summarized a recent tax case involving a very specific definition of direct materials. The future role of the SMA series in similar circumstances is bright, give the need for guidance and the growing awareness of this important professional promulgated.