Tashpulatova Dilnozakhon Oybek qizi1, Makhmudova Nozimakhon Azizbek qizi2
1Ferghana polytechnic institute, Uzbekistan, applicant of "Accounting and Audit" department
2Ferghana polytechnic institute, Uzbekistan, student of "Management in production" faculty

The authors consider theoretical aspects of management accounting in unity and variety of its directions. Revealed the significance of management accounting and the factors that are necessary for its organization by subjects of business. Proves the necessity of the implementation of management accounting. Identify major implementation issues and suggests ways to solve them with the practice of advanced foreign experience.

Keywords: accounting, business entities, expenses, management accounting, management accounting system, methodological recommendations

Category: Economics

Article reference:
Problems and prospects of implementation of management accounting to business entities in Uzbekistan // Humanities scientific researches. 2016. № 5 [Electronic journal]. URL:

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Liberalization and structural deformation of the national economy of Uzbekistan requires independent and quality control of all businesses to maintain and increase its competitiveness and place in a free market. Effective management of the production activity of the company increasingly depends on the level of information support of its individual departments and services.

Currently not all national organizations have thus streamlined accounting, that information contained in it has been suitable for operational management and analysis. As the investigations carried out by us, the company with a complex industrial structure, in dire need of rapid economic and financial information, which helps to optimize costs and the financial results to make informed management decisions. Unfortunately, taken by management decisions on the development and organization of production are not substantiated by appropriate calculations and tend to be intuitive.

The necessary information for the operational management of the enterprise is contained in the management accounting system, which is considered one of the new and promising directions in accounting practices.

The term management accounting appeared in the CIS countries, including Uzbekistan, relatively recent. In Uzbekistan, this term has still only in theory but hardly used in practice businesses. Because of this, no consensus about the management accounting concepts among local practitioners.

B. Needles, H. Anderson, D. Caldwell consider that management accounting expands financial accounting and mainly used for internal company operations. His goal is to provide managers with information for achieving specific industrial purposes. [1, p 17-18]

V.B Ivashkevich said that management accounting is the area of knowledge and scope of activities related to the formation and use of economic information for managing a business entity. Its aim is to help the managers in a cost-based solutions. [2,p 14]

Many scientists, focusing on the essence of management accounting, open it through the comparison of management and financial accounting, showing their similarities and differences. Currently, there is a significant increase in costs and at the same time changes in texture in many industries. For example, with the advent of automation and computerization decreases the share labor expenditures in manufacturing and the service sector. At the same time the cost of wages superseded the amortization charge. Growing competition encourages enterprise to flexibly change production in order to reduce product unit costs. For example, introducing  quality management system on all stages of production allows to avoid the issue of defective products, minimize inventories and prepare  financial statements, constantly reflecting all business transactions.

It is known that management accounting is not mandatory for the use by economic agents. Its organization and method are not regulated by law. The decision to implement it to the practice is taken by the founders of the business entity.

 At the same time gathering and processing of information are considered to be appropriate if its value to control over than obtain the relevant data costs. Managers and specialists are faced with whole system of problems with the introduction of the management accounting. The first group of problems is related with the lack of theoretical and methodological bases of formation of management accounting in the national practice. Effective development of registration and administrative technologies is possible on the basis of interrelation of already available potential and the available experience in this area and new information technological capabilities of the computer equipment and computers.
Effective application of ways of maintaining the account in the management sphere is possible only in the conditions of realization of the saved-up experience of calculation receptions and methods of calculation of prime cost of finished goods, works and services. There is a certain circle of the problems which is interfering active dynamics of accounting development in the sphere of management and succeeded them prerequisites of manifestation of interest in results of management accounting.

The following problem is absence at owners and the management of the organizations of desire to develop mission, strategic objectives and to define system of the purposes. Difficulties of such order are explained by the fact that transition from one form of managing to market form was carried out by the people prepared as experts for centrally the operated system.

It is known that in world practice the conventional information system providing needs of managers for intra company management is the system of management accounting [3].

It is necessary to understand supervision, an assessment, registration, measurement, processing, systematization and information transfer as system of management accounting mainly about expenses and results of economic activity in the integrated system of the account, rationing, planning, control and the analysis. The purpose of management accounting – formation of sufficient information base to internal users for adoption of operational (tactical) and expected (strategic) administrative decisions.

In our opinion, the system of management accounting at the enterprise in the conditions of free competition has to act as the information base of management. By estimates of experts, in economically developed countries of firm and company of 90% of working hours and resources in the field of accounting spend for statement and conducting management accounting, and only 10% – for financial accounts department or bookkeeping. At some domestic enterprises, unfortunately, this ratio looks exactly the opposite.

Both interest of heads and specialists of the enterprises, and organizational prerequisites and operating conditions of management accounting are necessary for positive change of such ratio towards management accounting at the domestic enterprises.

For highly effective work of the modern enterprise, in whatever sphere of economy it worked, well-adjusted system of management accounting and the reporting is necessary for managers of different levels. In Uzbekistan few recommendations about statement of effective system of management accounting at the enterprises are developed, and management accounting is in a germinal state (for example, in the form of the schedule of document flow), or it is absent at all.

More than 20 years the committee on management accounting of institute of management accounting of the USA develops system of provisions on management accounting (to Statements on Management Accounting – SMA) which are recommendations of high quality experts in the field of management accounting for the companies. The system of these provisions includes five levels:

- purposes of management accounting;

- terminology;

- concepts;

- practician and technician;

- management of registration activity.

Now about 60 such recommendations – from the basic, defining purpose of management accounting, and the dictionary of management accounting to bases of reporting information for managers and introduction of ABC-costing are developed. These provisions, being supranational documents on management accounting, could become basic recommendations about management accounting and for the national companies.

On the basis of the conducted researches, we offer a number of actions and recommendations about improvement of management accounting by economic entities:

- to expand a circle of the enterprises using in the activity the best mechanisms of management accounting for adoption of administrative decisions;

- to stimulate application of the best practices of foreign countries on development of systems of financial management and management accounting in domestic conditions;

- to develop basic methodological recommendations about questions of the organization and conducting management accounting at the enterprises, in view of domestic and foreign experience;

- to explain to an administrative link, owners of the enterprises importance of conducting management accounting;

- to accelerate process of formation of professional community, to give support to processes of association of professionals in the field of management accounting.

Thus, the place of management accounting in a financial system of the enterprise absolutely special, and his statement and maintaining demand other approaches and other experts, than those which serve accounting and tax sectors. Considering all above, it is possible to draw a conclusion that value of management accounting will increase in the future. Ability of the enterprise to survive presently during the economic and political changes happening in the world is directly connected with reaction of administration to these changes, and, undoubtedly, the role of management accounting in such circumstances will only raise.

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