RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTING
The 50s and 60s of the twentieth century was a period of significant diversification of the economic activities. As a result of that, big companies called conglomerates appeared. The biggest problem with them was efficient management. The system of central management did not work properly. In respo...
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| Format: | Article |
| Language: | English |
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Nicolaus Copernicus University in Toruń
2017-03-01
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| Series: | Copernican Journal of Finance & Accounting |
| Subjects: | |
| Online Access: | https://apcz.umk.pl/CJFA/article/view/12570 |
| _version_ | 1797727541468856320 |
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| author | Tomasz Zimnicki |
| author_facet | Tomasz Zimnicki |
| author_sort | Tomasz Zimnicki |
| collection | DOAJ |
| description |
The 50s and 60s of the twentieth century was a period of significant diversification of the economic activities. As a result of that, big companies called conglomerates appeared. The biggest problem with them was efficient management. The system of central management did not work properly. In response to this the concept of decentralization was created. It assumed the transfer of decision-making powers to lower level of the organizational structure and increase the independence of separated areas of the company. The implementation of the decentralization concept also required modification of an existing information system in the company. In response to this responsibility accounting was established. The heart of it were separate areas of the company called responsibility centres. This modificated information system provided top management regular internal reports about economic situation in each of separated centres using multi-block income statement. The emergence of large companies resulted in problems not only with efficient management but also the assessment of the economic situation by external users, in particular, the company investors. They also noticed the value of the responsibility accounting. However, the fact that the investors began to demand the disclosure of such information as a part of financial statements, was the first step towards the creation of segments reporting.
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| first_indexed | 2024-03-12T11:01:14Z |
| format | Article |
| id | doaj.art-23890ffa1ec24a08be83cd4a87da5c32 |
| institution | Directory Open Access Journal |
| issn | 2300-1240 2300-3065 |
| language | English |
| last_indexed | 2024-03-12T11:01:14Z |
| publishDate | 2017-03-01 |
| publisher | Nicolaus Copernicus University in Toruń |
| record_format | Article |
| series | Copernican Journal of Finance & Accounting |
| spelling | doaj.art-23890ffa1ec24a08be83cd4a87da5c322023-09-02T05:33:03ZengNicolaus Copernicus University in ToruńCopernican Journal of Finance & Accounting2300-12402300-30652017-03-0152RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTINGTomasz Zimnicki0Nicolaus Copernicus University, Toruń The 50s and 60s of the twentieth century was a period of significant diversification of the economic activities. As a result of that, big companies called conglomerates appeared. The biggest problem with them was efficient management. The system of central management did not work properly. In response to this the concept of decentralization was created. It assumed the transfer of decision-making powers to lower level of the organizational structure and increase the independence of separated areas of the company. The implementation of the decentralization concept also required modification of an existing information system in the company. In response to this responsibility accounting was established. The heart of it were separate areas of the company called responsibility centres. This modificated information system provided top management regular internal reports about economic situation in each of separated centres using multi-block income statement. The emergence of large companies resulted in problems not only with efficient management but also the assessment of the economic situation by external users, in particular, the company investors. They also noticed the value of the responsibility accounting. However, the fact that the investors began to demand the disclosure of such information as a part of financial statements, was the first step towards the creation of segments reporting. https://apcz.umk.pl/CJFA/article/view/12570decentralizationresponsibility accountingresponsibility centresmulti-block income statementsegment reporting |
| spellingShingle | Tomasz Zimnicki RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTING Copernican Journal of Finance & Accounting decentralization responsibility accounting responsibility centres multi-block income statement segment reporting |
| title | RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTING |
| title_full | RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTING |
| title_fullStr | RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTING |
| title_full_unstemmed | RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTING |
| title_short | RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTING |
| title_sort | responsibility accounting inspiration for segment reporting |
| topic | decentralization responsibility accounting responsibility centres multi-block income statement segment reporting |
| url | https://apcz.umk.pl/CJFA/article/view/12570 |
| work_keys_str_mv | AT tomaszzimnicki responsibilityaccountinginspirationforsegmentreporting |