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ACCA Applied Knowledge · Management Accounting · Accounting for management

Which of the following is a characteristic of management accounting information, as opposed to financial accounting information?

Management accounting information is often forward-looking and produced for internal users when needed. It is not bound by IFRS, not primarily for shareholders, and not subject to statutory filing, which are features of financial accounting for external users.

  1. AIt must follow IFRS Accounting Standards
  2. BIt is mainly prepared for external shareholders
  3. CIt is often forward-looking and produced for internal users as neededCorrect
  4. DIt is legally required to be filed annually

Explanation

Management information is produced for internal managers, in whatever format and frequency is useful, and often includes forecasts. IFRS compliance, shareholder focus and statutory filing describe financial accounting.

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