Winter 2019 - HRPD 703 Management Accounting Non-Financial Report

This report delves into the realm of management accounting, with a specific focus on non-financial information and its influence on business decisions. The study uses High Liner Food Inc. as a case study to identify and analyze the company's non-financial disclosures, such as sustainability reports and codes of conduct, and how these are integrated into their management accounting system. The report examines the responsibilities of management accounting, including strategy formulation, risk assessment, and the integration of financial and non-financial data. It explores how High Liner Food Inc. uses non-financial information, like employee behavior and stakeholder requirements, to develop business strategies and implement environmental management accounting, integrating financial statements with sustainability reports. The report concludes by emphasizing the importance of non-financial information in achieving long-term success and maintaining corporate principles.

Running head: MANAGEMENT ACCOUNTING
Management accounting
Name of the student:
Name of the University
Author’s Note:

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Executive summary
The study sheds light on the management accounting with reference to the non financial
information. The non financial information includes the information that puts impact on the
company’s activity. The study identifies the non financial information for the High link Food
INC. and this has been used in decision making into the management accounting system of
the company. The study includes discussion on the responsibilities of the management
accounting. Finally the study also explains the integration of the non financial information
with the management accounting where the financial statement has been integrated with the
sustainability report.

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Table of Contents
Introduction................................................................................................................................3
Identification of non-financial information................................................................................3
Responsibility of management accounting................................................................................4
Integration of management accounting with non-financial information....................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................8

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Introduction
An annual report consists with two types of reporting category. These are Financial
and non-financial reporting. The non-financialreporting is the disclosure of the company’s
social, environmental and human right information that represents company’s sustainability
into the market. However the management accounting refers to the production of the
nonfinancial accounting data for the company’s management.This includes the responsibility
of management accounting to analysis, strategy formation, planning and risk assessment of
the non-financial information. This indicates that the management accounting has a deep
relation with the non-financial information management. Hence, the study undertakes the
identification of the nonfinancial information presented by the High liner food INC. and
impact of the non-financial information on the management accounting system.
Identification of non-financial information
The company discloses non-financial information through the sustainability reporting.
High liner food INC. discloses their non-financial information depending on the
environmental, social and governance behaviour (Theriou, 2015). However the company
represents their non-financial information through representing sustainability report, code of
conduct, corporate discloser, corporate and employee retaliation, corporate and relation
trading policy, High liner’s food supplier’s code of conduct, social responsibility report,
welcome manual, annexure of the accounting document of accountability and symbol in
product label.
This information makes the accounting management more effective as the
identification of this information helps the account manager to take effective decision (Cundy
et al., 2015).
Sustainability reporting:

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The sustainability reporting refers to a process of gathering and disclosing
information on nonfinancial aspect of a company’s performance, including environmental,
social, employee and ethical matter, defining measurements, indicators and sustainability
goals based on the company’s strategy (Junior, Best & Cotter, 2014).
Integrated reporting:
Integrated reporting refers to the process of developing integrated report by
combining financial statement and sustainability reporting in to a coherent which explain the
company’s capability to create sustainable value. The integrated reporting helps the accounts
manager to identify the company’s policy through which decisions have been made (De
Villiers, Rinaldi & Unerman, 2014).
Responsibility of management accounting
Management accounting has a responsibility of company’s financial and nonfinancial
information based on which the manager makes decision (Grougiou et al., 2014). The
management accounting system has a responsibility of:
1. Analysing corporate governance and management accounts through which business
decision have been made.
2. Formulation of the strategy depending on the financial and non-financialinformation
acquired from the company’s activities and reports.
3. The management accounting develops plan to create an effective implementation of
the accounting technique with the organization.
4. The management accounting emphasises on the risk management deepening on the
various financial and nonfinancial information of the organization. The non-financial
information may include the company’s sustainability ability, corporate governance or

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identification of the corporate principles that helps the company formulates a risk
management strategy (Sadgrove, 2014).
The management accounting not only deals with the financial information for the decision
making this also emphasises the fact of considering non-finical information while making a
decision. The company undertakes the management accounting through the integration of the
social responsibility and responsibility towards their stake holders. The company implements
environmental management accounting system which emphasis on the non-financial
information to develop a cost management through understating the importance of
environmental resources.
Integration of management accounting with non-financial information
Depending on the non-financial information the management accounting system
provides essential business support and advice to the management team of the organization.
This provides business support through formulating business strategy depending on the
corporate governance and the stake holders’ requirement (Achimugu et al., 2014). Further
non-financial information such as company’ governance behaviour helps in developing
internal accounting and auditing strategy. Depending on the employees requirement and stake
holder’s requirement information the management accounting develops plan for generating
satisfaction. However the management accountingsystem followed in the High link food
INC. helps in developing non-financial benefit for their stake holders depending on the
sustainability report.
The non financial information such as employee’s behavioural issue or stake holder’s
requirement helps the company to formulate strategy accordingly. Further the sustainability
report helps the company to adopt the EMA into their management accounting (Gunarathne
& Lee, 2015). This also helps in formulating resource management strategy. This also helps

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in integrating the financial statement with the sustainability reporting. The management
accounting works according to the corporate governance, therefore the management
accounting integrates with the corporate governance which creates opportunity for company
to gain sustainability into the market. For the High link food INC. the management
accounting integrates with the non financial information in the food supply where the code of
conduct for the food supplier has been identified into the management accounting and the
decision has been made based on achieving the cost efficiency. The management accounting
system identifies the company’s objective at the initial stage which helps the manager to
develop a decision making process depending on the understanding. The identification of the
company’s objective helps the management accounting to develop an idea over method of
accounting that will be followed into the company. However the company develops their
management accounting system depending on corporate governance and legislation into the
country. This helps the management accounting to adopt and identify non financial
information which helps the company to achieve a long run into competitive market with
maintaining company principles.
Conclusion
The study develops idea on the management accounting system into the organization.
However the study undertakes a company named high link food INC. for the better
evaluation of the non finical information and their impact on the management account. This
helps in decision making. The study develops an idea on the company’s financial information
that puts impact of the management accounting system. At the initial stage of the study the
report identifies the non financial discloser associated with the company’s decision making
process. Then the report develops idea on the integration of the management account with the
non financial information which helps the company to strategise success in near future. With
the help of non financial information such as customer’s feed or customer’s review helps the

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company to take required decision on their product. This also includes the financial dicision
as per the need of the management.

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References
Achimugu, P., Selamat, A., Ibrahim, R., & Mahrin, M. N. R. (2014). A systematic literature
review of software requirements prioritization research. Information and software
technology, 56(6), 568-585.
Cundy, A., Bardos, P., Puschenreiter, M., Witters, N., Mench, M., Bert, V., ... &
Vangronsveld, J. (2015). Developing effective decision support for the application of
“gentle” remediation options: The GREENLAND project. Remediation Journal,
25(3), 101-114.
De Villiers, C., Rinaldi, L., & Unerman, J. (2014). Integrated Reporting: Insights, gaps and
an agenda for future research. Accounting, Auditing & Accountability Journal, 27(7),
1042-1067.
Grougiou, V., Leventis, S., Dedoulis, E., & Owusu-Ansah, S. (2014, September). Corporate
social responsibility and earnings management in US banks. In Accounting
Forum (Vol. 38, No. 3, pp. 155-169). Taylor & Francis.
Gunarathne, N., & Lee, K. H. (2015). Environmental Management Accounting (EMA) for
environmental management and organizational change: An eco-control
approach. Journal of Accounting & Organizational Change, 11(3), 362-383.
Junior, R. M., Best, P. J., & Cotter, J. (2014). Sustainability reporting and assurance: a
historical analysis on a world-wide phenomenon. Journal of Business Ethics, 120(1),
1-11.
Sadgrove, K. (2016). The complete guide to business risk management. Abingdon:
Routledge.

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Theriou, N. G. (2015). Strategic Management Process and the Importance of Structured
Formality, Financial and Non-Financial Information. European Research
Studies, 18(2), 3.