management accounting

@coolchic,

There will be hardly anyone who will borther to provide a full discussion here.

So you will have to elaborate your answer.
As the requirement is to discuss , you need to provide an answer that has both supporting ideas and critics of the above mentioned statement. Don’t say just black or white, discuss it.

Here you might start with role and function of management accounting and results that it helps to achieve. Then you can start to compare it with financial accounting, illustrating the differences. But later you will need to express the role of financial accounting and prove it’s importance.
To summarize you can say that though management accounting indeed provides a system for effective running of business, it can’t replace financial accounting. etc

Concentrating on the differences between financial and management accounting that ansi’s good response suggests that you should highlight in response to your question ,some of the following differences between financial and management accounting should probably be stressed.The fact that in many jurisdictions there is a legal requirement for business entities to produce financial accounts and often publish these accounts.The justification for this can tke many forms including creditor protection, public interest and other stakeholder interest,minority shareholder protection and for taxation purposes. There is often no such direct requirement to produce management accounts which are used in the planning and control of an enterprise
In addition managment accounting tends to have a future orientantion and is used in a decision making capacty by internal users to decide on the best courses of action for the future.In contrast, financial accounting tends to be mostly utilised by external users and tends to be concerned with past events.