UNAIR NEWS – UNAIR Rector officially inaugurated Prof Dr Noorlailie Soewarno SE MBA Ak as professor on Wednesday, May 10, 2023, at the Garuda Mukti Hall Management Office, MERR C Campus. She became the 32nd Professor of the Faculty of Economics and Business of Universitas Airlangga (UNAIR).
In her scientific oration, she mentioned that the implementation and achievement of Strategic Management Accounting, as a Management Accounting sub-specialty amidst the hubbub and commotion of Business Management, is still not as expected. One that is still lacking attention in the field of Accounting is Strategic Management Accounting,” said Prof. Noorlailie.
According to her, history has recorded that Financial Accounting is very dominant. This domination has made Management Accounting unable to provide relevant information for planning, controlling and decision-making to be less functional. Management accounting is only a shadow of financial accounting.
Furthermore, the tendency of budgeting accounting towards financial measures and budgets as a means of planning and controlling the organization, ultimately incurred losses to the organization.
“At this time, Business Strategy becomes the commander in chief for changes in all business management models, including Management Accounting. This is when people start to voice Strategic Management Accounting, which is a sub-specialty of management accounting science,” she said.
Strategic Management Accounting provides financial and non-financial information to assist management in planning, controlling, and making decisions for the success of Business Strategy,” explained Prof. Noorlailie.
The direction of Strategic Management Accounting Development
The direction of Strategic Management Accounting development must follow the choices of organizational strategies to deal with the dynamics of the business environment. Recent strategic issues include Sustainable Development Goals (SDGs)-United Nations, Sustainability Strategy, Sustainability Performance and Reporting, Digitalization Strategy, Innovation Strategy, and Intellectual Capital Readiness.
The 570th professor of UNAIR PTN-BH continued that Accounting education at universities has a large role in preparing students for the modern business community. Accounting education and teaching curricula need to be more friendly to strategic management accounting that is inclusive towards changes in the contemporary business environment. So it is necessary to prepare Accounting education for teaching Generation Z.
In the end, Prof. Noorlailie said that Strategic Management Accounting provides future-oriented information to management for strategic planning, control, and decision-making. The readiness of Accounting educational institutions, professional organizations, and the management of the organization largely determines the success of Strategic Management Accounting.
“With the readiness of these stakeholders, a strategic management accounting utopia can be a reality amid the current ocean of financial accounting mentality,” she concluded.
Author: Langgeng Widodo
Editor: Khefti Al Mawalia
