Background
The definition of a profession serves many purposes. It can serve as a basis for teaching the cognitive aspects of the subject and for evaluating the behaviors characteristic of the profession’s members. The definition can also help define the place of the profession in society now and in the future, its boundaries, and its identity. In recognition of this fact, the Institute of Management Accountants (then the National Association of Accountants) issued its first SMA in 1981. Titled Definition of Management Accounting, it defined management accounting as:
“the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of financial information used by management to plan, evaluate, and control an organization and to assure appropriate use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies, and tax authorities.”