The novelized assignments for managerial Accounting of creating value to shareholder

Abstract

There are certain changes related to the extension ofmanagement's assignments to strategic areas which isclosely connected with increasing influence of numerousfactors such as the rapid growth of innovation, thecontinuous technical development acceleration, andextension of competition arena among businessorganizations. These changes force management to adoptapproaches based on concepts that are characterized bystrategic view. Among these concepts, one can make useof value creation concept.The research aims at presenting and analyzingcontemporary approaches based on concepts that provideintellectual bases of strategic view in administratingexpected future costs, since the survival and success ofbusiness units constitute a function of the methods ofunderstanding, analyzing, and applying those approachesand concepts which the business units adopt.The research reaches at a number of conclusionsconcerning the concepts that seek value creation for theshareholder which take the form of either paid dividends orgained capital added to the shareholder's equity, orsometimes, both these forms are adopted.The research points out the importance of these conceptsand approaches to support the role of managerialaccounting in terms of using them within the so calledframework of "value pyramid". All this should provide avalid basis for the application of value-based management