Management accounting for financial services

Management accounting for financial services


Abstract / Description

Management Accounting for Financial Services” is an expression of the desire to apply the knowledge acquired in the discipline of management accounting for decision making in banks and other financial institutions. The author brings twenty years of his experience of working overseas in the field of accounting profession, especially the management accounting, to bear upon his writing of the book. This is the first compilation of its kind in Pakistan that directs the principles and methodologies of management accounting specifically towards banking and financial industry.

The book comprises of 22 chapters. The first 17 chapters cover management accounting in theory and practice. They are roughly subdivided into cost concepts, management planning in performance evaluation and management accounting for decision-making. The remaining five chapters exclusively deal with using management accounting for decision making in financial service industry. Management today relies heavily on accounting information - reliable and fast – to make decisions. Today, majority of decisions are made on the basis of accounting information pertaining to costs that are of short and mid term duration. The book, therefore, starts with describing the nature of costs, their behavior and their business framework. Costing carries a special meaning in the business environment and the book shows its importance as a decision making tool. Recording and reporting costs i.e., job order costing and process costing are the two common methods of collecting costs. Both these methods are fully discussed in the first part of the book.

Table of Contents

I. Cost Accounting: Cost Concepts, Behaviours and Framework

Chapter I Introduction, Background and Definition ----------------- 1-10

Chapter II Cost Classification and Flow ------------------------------- 11-22

Chapter III Cost Accumulation Cycle ----------------------------------- 23-30

Chapter IV Job Order Costing System --------------------------------- 31-41

Chapter V Process Costing ----------------------------------------------- 42-52

Chapter VI Absorption Costing vs, Direct Costing ------------------ 53-59

II. Management Planing & Performance Evaluation

Chapter VII Role of Budget in Decision Making -------------------- 61-80

Chapter VIII Standard Costs --------------------------------------------- 81-89

Chapter IX Flexible Budget ----------------------------------------------- 90-96

Chapter X Computation and Analysis of Variance ------------------ 97-105

Chapter XI Profit Variance Analysis ------------------------------------ 106-115

Chapter XII Responsibility Accounting -------------------------------- 116- 126

III. Management Accounting for Decision Making

Chapter XIII Break Even and Cost Volume Profit Analysis ------- 127-135

Chapter XIV Use of Differential Analysis for Decision Making --- 136-149

Chapter XV Preparing and Analyzing Comprehensive Financial Statement 150-165

Chapter XVI Time Value of Money --------------------------------------- 166-178

Chapter XVII Capital Budgeting ------------------------------------------- 179-188

IV. Management Accounting for Financial Institutions

Chapter XVIII Costing & Cost Analysis for Banks -------------------- 189-206

Chapter XIX Pricing of Business Loans --------------------------------- 207-219

Chapter XX Asset and Liability Management -------------------------- 220-231

Chapter XXI Financial Statements of a Bank -------------------------- 232-243

Chapter XXII Performance Analysis for Banks ------------------------ 244-258

Publication Date


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Author Affiliation

  • Aman U. Saiyed is a Visiting Faculty at Institute of Business Administration (IBA), Karachi.

Management accounting for financial services