- published in 04/25/2015
To download the easy-to-copy print format PDF click here Summary: The research aims to provide a vision for the emergence of a new methodology accounting system, we need to be applied uniformly in the Iraqi institutions and companies ...
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The research aims to provide a vision for the systematic emergence of a new accounting system, need to be applied uniformly in the Iraqi institutions and businesses, the public and private sectors. This requires, above all, the need salt to make the necessary reforms in the structure of the Iraqi economy, including the accounting system. The multiplicity of accounting systems in institutions and Iraqi businesses, the public and private sectors, is not conducive to building management information systems for the production of standardized data, the data that remain necessary at the macro and micro levels of the economy, and definitely help the central planning programming and design of the overall budget, and decision-making at the level of economic units and business, especially that Iraq needs at this stage to strengthen the role of the public sector in the sustainable economic and human development process, as well as activating the role of positive characteristic of the private sector in this process, and the transition to administrative decentralization in the management of the economy. Hence the need to develop the current accounting system, and the use of the application of international accounting standards gradually and thoughtful, according the necessary capabilities, whether it is professional and academic side, and / or practical and applied side, including also responds to the new environment Iraqi economic units, in line with EU requirements of multinational companies and global financial and trading organizations.
This research aims at providing a methodology for the emergence of a new accounting system, so as to be uniformly applied in companies and institutions of the Iraqi public and private sector. This requires, above all, the urgent need to conduct the necessary structural reforms of the Iraqi economy, including the accounting system.
The existence of multiple accounting systems in companies and institutions of the Iraqi public and private sectors is not convenient for collecting data and managing information systems. The various accounting systems need to be uniformed or standardized in order to form a platform for future micro and macroeconomic policymaking. A unified Iraqi accounting system is essential to support central government planning and the design of the general budget. Only with data and information drawn from a standardized system will it be possible to produce indicators and forecasts for national economics and business units.
In its current economic shape, Iraq is in urgent need to strengthen the role of the public sector in the process of economic and human development. At the same time it needs to reactivate its role and responsibility to facilitate and optimize the business environment of the private sector. A standardized accounting system will also establish the necessary mechanisms for internal audit that allows decentralization of administration and management of the national economy.
The transition to a new system requires the development for transforming the current system to a new accounting system.
The identification of the standards, according to the International Accounting system, requires that it is essential to impose a set of new standards in line with the global business environment, so as to develop a uniform Iraqi accounting system consistent with the standards of the European obligations, the financial organizations, multinational companies, and the World Trade Organization, WTO.
The former dictatorial regime left effects and heavy burdens and expensive cost to large segments of the Iraqi society in the economic fields. After the fall of the dictatorship, following the occupation of Iraq by the United States and its allies in 2003, and the first legislative elections, and the adoption of the Constitution in 2005, successive governments have become so far in front of the tasks and accruals for economic reconstruction of Iraq, and to get rid of the disadvantages of the former regime. And put forward economically and politically transparent approach in line with the needs of the country and the level of social, legal and regulatory development of society, as long as they Moardh available. And work on activating the role of the state, giving a real role for the private sector's contribution to the revitalization of the economy, as well as to agree on most of the priorities to be implemented to remove the backwardness and development of the economy and tackle poverty and unemployment, and to provide services and building and reconstruction of infrastructure and introduction of modern technology to build all that meets the aspirations of sustainable national development process , but the consensus on the required software has not been achieved to attain these ends.
Faced with this situation the greater the need to think make the necessary reforms in the Iraqi economy structure, including the accounting system, and unify multiple existing accounting systems in the public and private sectors, and the development of financial control and quality methods, and raise the professional capabilities of workers in the fields of accounting and administration in Iraq. In order to move to a new economy for accounting, and the use of new tools to address the function of the accounting system, in order to provide accounting information that meets the needs of investors and owners, financiers and others.
The importance of this research lies in the following analytical cognitive and descriptive of the historical account is suitable for the development of the accounting system in contemporary Iraq approach, and to find out the extent of the applicable accounting system compatibility are currently in the production of the data the level of acceptable quality, so as to achieve numerous in control, planning and production data and present them to users Accounting goals, from in order to rationalize in economic decision-making process, at various administrative levels.
That the multiplicity of accounting systems in institutions and Iraqi businesses, the public and private sectors, is not conducive to building management information systems for the production of standardized data, the data that remain necessary macroeconomic levels (macroscopic) and micro (Almaekeroa), and definitely help the central planning programming and design of public budget accordingly, also helps to make decisions on the level of economic units, especially that Iraq needs at this stage to strengthen the role of the public sector in the sustainable economic and human development process, as well as activating the role of positive characteristic of the private sector in this process.
Aim of the research:
The research aims to systematically offer descriptive different accounting systems currently in place, and criticism advantages and disadvantages, and induction through the stages of development, and the appropriateness of the current phase experienced by the Iraqi economic policy, specifically for its orientation towards liberalism and openness, and the methodology of transition to a market economy, the transition to administrative decentralization in the conduct of the economy, and the fight against financial and administrative corruption. Which requires in this case the use of new tools to deal with financial affairs, in order to provide accounting information that meets investors and owners, financiers and other needs, the transition to a new economy for accounting, requires updating the Consolidated accounting system, and focus mainly on the side of cost accounting in it, to meet the needs of units Business and economic productivity, even in line with the new environment and the level of social, legal and organizational development, and suitability with international accounting standards in its applications.
Research Hypothesis :
The research hypothesis lies in Alvkrhalatah: accounting system in order to lead a real and effective role in the new Iraqi economy, to be updated in order to contribute to the unification of fiscal policy? And regulations of accounting multi-force in the Iraqi institutions and financial reporting, and to improve financial control, quality and curriculum theory and practice, and in raising the efficiency of financial and accounting and administrative performance, to raise productivity, as well as in the development of the professional capacity of employees in the accounting field, especially in the area of cost accounting.
Find axes :
In light of the foregoing, can be summed axes Find the following:
The first axis: Display historic suitable for the development of the accounting system in contemporary Iraq;
The second axis: the unified accounting system in Iraq;
The third axis: the modernization and development and standardization of accounting systems in the Iraqi economy;
Theme IV: Summary and Conclusions .
The first axis: Display historic suitable for the development of the accounting system in contemporary Iraq
As is known, the accounting is today part of the economic system of scientific quantitative information and information, (Spirntek and Anformtk- Cybernetics and Informatics). and applied in the form of advanced electronic programs that meet the requirements of development and the progress of society in the field of information technology. It is also, as a system, on the one hand, and the shroud on the other hand, have a theoretical side and the other side applied. That the accounting system installation is defined by its functions.
It can split the installation of the accounting system to the following subsystems:
1. section tab and record transactions-economic bookkeeping;
2. The calculation section, measuring the economic resources of the unit cost accounting;
3.altaqarir accounting, is to produce and display data, and to provide various levels of management within and outside the economic unity of this information for use in making economic decisions and administrative process;
4. Financial Analysis, and means translation and interpretation of this data in practical terms, to facilitate the economic and administrative decision-making process end.
It can be expressed in these functions as follows:
Source: Own work
In spite of the application of uniform accounting system in the sectors of productive commercial and government, but of the general budget of government departments follow government accounting, and investment activity return to the Ministry of Planning, and institutions, banking and insurance, and private sector institutions, is the other track the different systems. Here we try and intensively highlight the stages through which the organization of the accounting work process, and very unified accounting system application, we quote as follows:
First: Commercial Law
The accounting system in the Republic of Iraq is working, according set of laws and regulations, including the Commercial Law No. 60 of 1943, Article 47, as well as Law No. 149 of 1970 Article 31, and finally Law No. 30 of 1984 which committed these materials Iraqi trader, a number of duties.
Select Commercial Law No. 30 of 1984, as amended, in Part II / Chapter I, Articles 7, 8, 9 him, recipe and civil trade name and bookkeeping business for the dealer. In the third chapter / section I of Article 12 (commercial books), and states:
Merchant who at least its capital (30,000) thirty thousand dinars, he has to hold the books required by the nature of his business and its importance in a manner to ensure that the statement of financial position. Accordingly, in all cases holding Aldfteran the following two:
1. . Journal: in accordance with Article 13 of the said Act, restricts the journal according fundamentalism documents details of all commercial transactions carried out by the trader, day by day, from the purchase and sale of assets, capital and goods, and debtors and creditors, stock, cash and bank, as well as revenues and expenses all , in addition to the personal Mshobach.
2 . Professor: in accordance with Article 14 of the Act, the dealer that the notebook holds daily help books, to record the details of different types of commercial transactions carried Bha.oeetm according under the total of these operations phase of the original journal month.
The use of these two Aldfteran mandatory. Moreover, this has also passed a law could be used to help other notebooks on according to the requirements of the size of the company to record some business processes. Under the terms of Article 19 of the Act for the dealer that the sophisticated technical devices and new methods used in the organization of its accounts and the statement of financial position and in the assets of commercial correspondence. These measures are designed to regulate and standardize accounting procedures in commercial transactions for merchants.
Second: the Code of General Accounting;
For further clarification [historical] point out that it had been issued in 1940, the first law in the organization
Accounting Aovernmah- the general budget, which was based on Ottoman law for the year 1326, which includes the general principles of accounting, financial system contained in Law 712 of 1924. The Code of General Accounting No. 28 of 1940, as amended, is a good step for similar applications in the general budget departments . Since the law has been clarified in the five chapters all necessary regarding state revenues and exchange controls and computational session in oversight and auditing and fiscal year, and all that came to unite the financial procedures of the departments of the central and associated Hsaptha general budget of the state.
This is the beginning of the evolution of the government computerized system, despite the delay records accounting entries, and the preparation of the Consolidated Financial reports and the final outcome of the departments related to the public budget. And it is still far from what the government accounting system to talk in terms of the principles and practical application in use, and did not meet with the financial and structural changes structural current national economy.
In general it can be said that this system is characterized by the following three advantages:
1-counting the purchase of fixed assets and consumer once when you buy them, and that means not to apply the depreciation on these assets system.
2-adopt the cash basis in recording expenses and revenues, any failure to apply the style of dues and payments made.
3-central in the preparation of accounts and revenue resulting Analmsrova general budget.
Third, the regulations of the stomach accounting offices and administrative centers
After the July 1958 revolution, it used different accounting systems in some industrial and government institutions, for example, as follows:
Tobacco plants and public Alsicaer, textile, dairy, cement, sugar, and others. Followed advanced systems from its predecessor. After the nationalization measures in 1964, which affected the industrial enterprises such as, smoke companies, spinning and weaving, and the coefficient of Fattah Pasha, banks and private insurance companies, there is a need to use accounting system developed in these institutions, in order to follow-up and control and audit and produce the necessary data in economic decision-making process . For this purpose it has been prepared in advanced accounting systems by:
1-chartered accountant offices metaphor and legally recognized, so be prepared sophisticated accounting systems for the industrial sector, both public and private.
2-National Center for Consultancy and Administrative Development in Iraq, which opened in 1963, and prepared a sophisticated accounting systems for the productive sector and the commercial and government service, and play an important role in the development of administrative and accounting systems, especially in the areas of cost accounting, auditing and raise productivity and quality control, analysis financial, planning and budgets, etc., and set up rehabilitation and training courses for employees, in order to raise the level of their knowledge of the possibility of application of advanced accounting systems in government industrial and commercial enterprises.
There are multiple accounting systems in industrial and commercial enterprises, government departments, and investment activities. Those institutions were nutshell differ among themselves in terms of, cost calculation, and the basis for preparing the final accounts and financial reports. For example, the government was the industrial sector companies used in the registration of economic transactions, the following books:
2. ledger year
3. The daily cash book
4. WordPad Assistant of income and expenses
5. Book of fixed assets details
6. Book stores
7. Assistant WordPad for debtors and creditors
This is according to the recordings contained in these notebooks extract the following reports:
1. The report
2. calculate the result report any profit and loss in the form of stages
3. preparation of the balance sheet
In order to visualize the best you can return to the models of these reports is attached at the end of the search.
After nationalization and breadth of the size of the industrial sector, initiated by the National Center for Consulting and administrative development, as well as chartered accountant licensed offices, to prepare the accounting system of the costs for a large section of the nationalized companies, but it was not binding on the application by it.
Fourth: the accounting system of investment activity according to the Ministry of Planning and Investment Plans
The accounting system of investment activity according to the Ministry of Planning and investment plans, is a centralized manner by the Ministry of Planning, according to the approved by the Ministry of Finance regulations, relying on statements calculations derived from the public daily, and which are sent to the ministry of those responsible for the implementation of the investment project in order to make the necessary adjustments to the amounts transferred from the ministry to the project account.
Fifth: accounting system special expenses and insurance companies
In banks and insurance companies have been prepared in the unified accounting for banks and insurance companies before a committee in the Ministry of Finance system. And it began to apply it with effect from 1.1.1988. A special regime for this sector in view of the peculiarities of the functions exercised by the banks and insurance companies, and the difference their systems for the facility in terms of the nature of the services provided, and style accomplish everyday transactions, which highlight the activity independently requires .atcef system simplicity and flexibility, and applications of the principles of cost calculations, and follows the decimal number system Guide to the accounts of
(1-4), and represent Hsabatallmizanah, as follows:
Production centers and accounts for insurance companies (cost) (-5 9 ), and represent its accounts, as follows:
6 non-marine insurance
9. Other activities
The system is divided into three parts:
First: Guide accounting and explanation of the guide, as in the above
Second: processors Agaydah
Third, the financial statements and planning budgets
The principles and foundations adopted accounting system for banks and insurance companies, which are as follows:
. The principle of benefits in income and expenses
. Opposite accounts within the budget accounts
. Accounts tab in accordance with the unified accounting system directory
. The distinction between current activity and investment activity, and between normal activity and the extraordinary activity
. Fixed asset according to their nature and use in the activity tab
. Emphasis on non-use of other accounts where the evidence is received, unless a specific analysis of the levels that followed offer.
Accounting and records used in banks, are as follows:
. Records mandatory: The public daily records, and record general ledger
. Optional records: a record (help) that require the need of banking operations, such as savings accounts, records, and records of current accounts
Sixth: standardized accounting system;
On the other hand it can be referred to, came into existence after a period; a unified system of accounting in institutions that were of the General Trading Est. Arab Center for Research and Administration, known as has prepared (Arak) in 1969 Date of accounting and legal processes and regulations necessary for the application of this system system, and includes a guide and map of the account on the basis of the group, as follows:
3 the cost of production Awalkhaddmh
4 cost of the goods or service sold
5 revenues and expenses, including profit and loss
6 division profit
Each account of these accounts is divided into:
Detailed accounts and sub.
For example, it points out that the General Organization for Textile Management, issued its decision No. 5
1971.8.23 in the application of uniform accounting system. In 1972.4.1 it has been circulated applied in branches
This institution all companies. In 1973.4.1 applied this system to all government institutions of the industrial sector.
This system became the basis in the consolidated accounting system which has expanded its application later configuration, and included all government industrial and commercial sectors. The system, called the unified accounting system did not cover all sectors of the economy.
Accordingly, in the light directly and look closely, we find today in Iraq, different accounting systems in the application, namely:
1. Governmental Accounting;
2. unified accounting system of government industrial and commercial sectors;
3. accounting system for investment activity according to the Ministry of Planning and investment plans;
4. special accounting system in banks and insurance companies;
5. multiple accounting systems and business units in the private sector.
It is natural that here point out that these systems differ among themselves in terms of records and books, registration, preparation of final accounts and financial reports, and then this pluralism lead to different results with each other.
The second axis: the unified accounting system in Iraq
The emergence of this system has helped to develop the financial and management accounting system in economic units of the public sector administrations and self-financing, cooperative societies and all the mixed sector companies, which deal on
Economic fundamentals and aims to cover the cost of production, regardless of the administrative they are linked.
This system is characterized by flexibility. It can be applied manually and electronically in the accounting data production.
This system has contributed to the standardization of accounting regulations and laws, and the process of accounting data recording on
The level of quality companies and industries and at the national level in the broadest sense, from the point of preparation of final accounts and budget planning of the grounds specified in the rules and accounting terminology and definitions framework. It addresses the president of vocabulary, including financial accounting, management accounting, cost accounting.
And it can be summed axes and the results] unification the following:
. The unification of the foundations and principles, rules and accounting terminology and definitions;
. The unification of the foundations of the stock of materials and products and the rest of valuation of assets;
. Unify extinction rates for all assets;
. The unification of the financial year with the unification of the date of the result lists of accounts and financial position;
. The unification of the final accounts;
. Unify the reserves and allocations accounts;
. Unify planning budgets monetary, financial and technical;
. The unification of the accounting directory that is Kan, analyze, catalog, classification and division operations and accounting data.
Unified accounting system architecture:
Standardized accounting system helped ease record calculations and produce data at the level of companies and public institutions quality and national economy; it contains, financial accounting, management accounting, cost accounting. In light of this monitor vocabulary blend of the following:
Uniform Accounting Manual general framework, (accounts) map;
Explain Accounting Manual;
Accounting books and records.
The turn of the items contained in the composition, it can be said that the new accounting system has used the mechanisms
Following in the context of his work:
. The unification of the budget planning;
. Unify the result accounts, (profit and loss, balance sheet);
. Application and follow-up perpetual inventory system.
Accounting Manual general framework:
Accounting Manual classification depends on the foundations of accounts and numbered nine groups, as follows:
12. projects under implementation
22. reserves and surplus relay
14. Long-term loans
24. Long-term loans
15. Financial Investments
25. Credit banks
17. Other City accounts
27. other credit accounts
18. cash on hand and banks
28. result year
The result accounts
3. Uses, (expenses)
4. Resources, (revenue)
41. The current activity revenues
32. commodity supplies
33. service requirements
43. Securities Income
34. Purchases for sale
44. transformative revenue
35. transformative ongoing expenses
45. Construction and Housing and land projects earnings
36. Current transfers particularistic
These accounts and the branch levels, third, fourth, fifth and sixth.
5. . the control of production centers
6.. The control of production service centers
7.. Control marketing services centers
8.. Monitoring administrative and financial services centers
9.. Capitalism control operations centers
The first four accounts from 1-4 and mentioned in the above represents the total accounts, (Financial Accounting).
The cost accounting, it has allocated a total of 59 accounts. This division is influenced to some extent theoretically divisions in the accounting literature to countries with English and German language, any (Anglo-Saxon). All of these accounts are divided into multiple sub-accounts, and detailed, as shown through their application in the industrial sector,
It is a process, and you need to work and many time.
It can express a relationship between financial accounting and cost accounting in the consolidated accounting system in Iraq, plot No. 1, as follows:
A 's accounting books and records
Select the unified accounting system carrying the group that gathered the financial operations and economic activities of the unit all, are as follows:
1.. Books, Chairperson;
2. Analytical books, (professor of help);
3. Personal books of accounts, (Professor Help vocabulary);
4. Books and records and periodic cost statements.
The third axis: the development and standardization of accounting systems in the Iraqi economy
The uniform and the applicable accounting system in government industrial units, put in the time to fill the needs of the economy-oriented Aoualemkhtt, under the dominance of the public sector in the central system for Tcieiralaguetsad, and production data to serve the overall economy; more than Microeconomics, has not changed so far. In light of the growing globalization of the economy, we find today that Iraq's economic policy geared towards liberalism and openness, and the adoption of the principle of a free market economy. The transition from a centrally run economy to a decentralized, and activating the role of the private sector in most economic sectors. This situation requires the search for new financial instruments to provide accounting information that meets the needs of production units, investors and financiers. He has, we find that the relationship between financial accounting and cost accounting in the mentioned system design, came to the first focuses on the second account, and thus neglected the role of production units considered as the primary product of the analytical data produced by the cost accounting that. Therefore, the cost accounting within the framework of the unified accounting system at this stage is useless to perform its functions in the areas of cost measurement, and control and to take rational decisions in the production units.
In light of this dilemma, we can say that the unified accounting system in its current form, is merely a draft, but the accounting system of the costs. He must see that there is a need for Mesten need to modernize and develop the current unified accounting system and focus on updating your form of cost accounting.
Q I'm trying here, to intensify, the role of cost accounting in the framework of the unified accounting system in the areas of:
. Measure cost;
. And the process of economic decision-making.
And then followed by what I think is necessary for the development and modernization of cost accounting, to complete and up to the scientific level, through the elaboration of model (model), the accounting system of the costs, as follows: -
1. In the area of cost measurement: -
Standardized accounting system was limited to the distribution of elements on the uses of cost centers by activities, but did not say or exposed to the relationship cost measurement theories costs. This is with the exception of what was said in the field of measuring the cost of production under operation. I suggest it is necessary to develop the books and records of the tables costs as part of a unified accounting system, so that helps on the classification of costs items on a qualitative basis to material costs and the costs of non-physical (ie productive and non-productive) *, and then separate the direct and indirect costs on the one hand, and variable and fixed On the other hand, because of its especially in determining the cost of production and the decisions that can entail, such as energy exploitation, and determine the minimum price in the short term, the study of the optimum relationship between the cost and size of the production and the importance of profit. Also highlights the importance, too, and when preparing planning budgets, and in the field of control and planning, and presentation of financial statements. This development in the records and books, facilitates the application of any theory of costs when measuring the cost, ie, (total costs, marginal costs, and variable costs). But also, and more, it can be measured by the unit cost of more than one method, and that in itself is the production of information that are commensurate with the position of asking for. Also, this style, instructs the necessary product pricing, and those that are considered a luxury, and those produced in order to be exported abroad.
One of the things that sparked my interest, what is currently followed in the consolidated accounting system at the distribution of the elements of uses,
(Cost), the cost centers, especially those followed for center number / 9 (capital transactions), which are distributed by the cost related to the internal elements of the metalwork, any investment self-configuration, self-produced by the economic unity of the use of which, I suggest the following:
First: - that the elements which are distributed to the center is not one of cost elements in something, because it is considered the value of the assets of the economic unit formed itself to itself, and this is not considered, in theory, the cost elements. Standardized accounting system that fact has been alerted, and is distributed to the center as a prelude to add to the unit's assets.
Second: - What now follows on these elements in the center / 9, no allocation or distribution in practice, but at the end of the fiscal year. Almost any one time in the year, this is one of the costs do not achieve effective control hand. They may also lead to undergo this process, (uses distribution), for a lot of appreciation and diligence, so that could be the average unit cost in the direction contrary to the real or actual average cost. As to the distribution center at the end of the accounting period, does not achieve what could be called the upstream direction of any (of origin). This is one of the important books in the areas of registration matters. Also suggested that characterize the unit at the beginning of documents related to spend regular-production operation, and those of the composition of the capitalist self, ie (center / 9), so that it can assemble these unique documents from the other, and customize the new center, can its creation under the number / zero, behalf;
(Other / investment and finance expenses), instead of the number / 9, without this process is subject to the discretion Aotkadir by accountants or managers, until the results are reflective of the actual operational activity or real.
The diagram below the current unified accounting system, and the proposed additions, as a model, (model), by me, and marked in blue and red, the planned number 2 below.
2 - in the area of cost control elements:
Standardized accounting system settled for budget planning, as a tool of cost control tools, but also on the various activities carried on economic integration. These budget figures are often longer than the average in previous years. And that nothing happened diligence or development in their preparation, be on a discretionary basis or my guess, not based on sound scientific grounds, as it did not need to be any system of economic units need to follow a particular method in the preparation of the budget estimate and mentioned numbers. He put multiple proposals in this regard, especially in the aspect of the elements of costs, are as follows: -
First: - I see the necessity of attention to the economic units of the so-called system of specific costs in advance. Remember that the unit in the tail of the budget figures how to conduct cost estimates. Is it through the averages for previous years, or to amend those averages with something of appreciation, or by reference to the standards process Bjanbhe, physical and financial, (quantitative and moral). The unit will also be set to the same period during which the system up to standards, and under the supervision of the competent institution or sector. There is no doubt that the adoption of the budget planning standards, makes them effective control of the tools on the one hand, and economic instruments on the other hand, and accepted by the parties to the administration and implementing, from a third hand.
Second: - that interest standards in the areas of cost, will facilitate, without doubt, the ability to distinguish between direct elements and indirect costs, and then distinguish gradually after gaining experience of the unity in the application between variable and fixed elements, and therefore, this is one of the topics interlocking, and serving each other, and raise the efficiency of each other, and this so-called reverse nutrition, Feedback .
Third: - interest in accounting responsibility system, especially in the area of costs. This achieves the principle of linking the administrator of the cost incurred. Thus, the control process focused here on the persons responsible for the exchange cost elements, but not on the same elements. This is one of the latest scientific approaches to process control. And even can be an effective system of accounting responsibility, I see that the system provides a set of tools and ingredients to achieve this system and make it effective. The most important of these tools, are: -
. System for the specific costs in advance, to be measured by the yardstick of actual events;
. Reporting system to achieve communication between the various administrative levels;
. The organization of administrative and regulatory maps clearly defined responsibilities and authorities;
. Centers responsibility guide next to organizational charts;
. Thoughtful system of incentives based on the principle of reward and punishment, rewarded and punished shadow efficient negligent.
And you need each and every one of these tools and components to further research and study, in order to ensure the existence of an efficient system of accounting responsibility. And that this method of presentation is consistent with the principle of the division of the large system into subsystems or in part, so that takes care of each part, then these systems are grouped Awalojza to ensure the highest efficiency and effectiveness. I also see the need for special attention to the design documentary lines of responsibility system, so that reports can be directed at the right time and in the form required to charge cost spending item. In this area necessitates the need to divide the cost elements to what can be controlled, (uncontrolled), and can not be controlled, (uncontrolled), at a certain administrative level. And even control to be effective and objective, I see the need to achieve control over spending at the source, with no occurrence of spending, (drainage), and not wait until a certain time, then the costs are divided according to levels of responsibility and control.
And can take advantage of modern electronic means in the preparation of these immediate reports, and directing each channel in the appropriate connection, if properly designed and reporting systems, and identified in the conduct of lines, clearly, this will lead to the integration of process control and also in the integration of information.
Fourth: - control over the administrative and financial cost, the administration often turn their attention to control the cost of production and the cost of marketing, ignoring the interest cost of the required administrative activity, considering that this cost reflects the administration the same activity, which is in the process control. He must see the need to direct more of the control elements to the administrative cost items, which are identified by the system when the distribution center on Anaasralastkhaddamat / 8, (administrative and financial services), especially since these costs are increasing day by day in economic units. It is possible to limit these costs per year, in preparation for distribution to centers productivity on the basis of the direct costs for each cost center. Aoaattabarha directly burden on the profit and loss account of economic unity. The latter is limited to look for this important item of the cost, and the consequent unrealistic account of the prices of products. Since the rationale for pricing, is the allocation and distribution of all the items on the unit cost of the final product, to get to the real cost, and then Azaarsafa account as a result of operating profit or loss for what it is, too.
It is also Aldharoa separation of administrative and financing costs, where the administrative cost should be censored at the source by the supervisory authorities and regulators on economic unity, and not the organization or sector. It is also the other hand, it should be financing cost analysis, (interest on loans and bonds and banks), to the various clauses, so as to enable control over the types of loans. The financing cost resulting from some of the elements mentioned in the opponents any bearing number / 2 in the Accounting Manual for the system, is not considered, in theory, the cost elements. Therefore, I deem it necessary to pay more attention analyzed the relationship between these elements in liabilities or obligations, and uploaded under number / zero, (Other / investment and finance costs); proposed in the second paragraph mentioned above, under the title in the field of cost measurement, and what appears as a result of in the center, instead of center / 8, mind directly burden on the profit and loss of economic unity of account, so that it can rationalize borrowing and control policies on them, and suggested that it is appropriate to repay these loans or to renew or enter into a contract new loans ... etc.
Fifth: - I suggest adding control procurement costs Center under No. / 9 to Mrakzaltaqalev contained in the system, in order to control these costs from upstream, and distributed to the value of the materials, goods and money procured by economic unity, in order to get to the real cost, as long as they exist in the system Center under No. / 7 titled marketing services, then why there was not to monitor the costs of purchase center?!. This addition to lead to a change in the nature of the Accounting Manual for the system, and turn it from a non-zero-zero evidence to guide. In my opinion, that this does not affect the essence of the subject, to the extent that affect the use of the system described in the electronic programming process.
Sixth: - the need to focus on quality control of products in addition to the level of control over the cost level, so as to ensure the attainment of the required quality at the required level Aoualemnasp of the cost. This type of censorship guaranteed by planning devices, which occurs because the cost level, achieved with an appropriate and acceptable level of production quality. Where it may be cost reduction at the expense of quality, or that the cost will be at the same level, but the level of quality may be reduced from what it was before.
And are quality control level by applying the so-called quality accounting costs. Through the necessary process quality control in its various stages, any cost planning, (stage procurement of materials and raw materials and goods, the production stage, as well as the marketing and distribution of output stage), and follow-up to what is happening from the actual costs, so that you can industrial unit to ensure a good level of quality at every stage of these stages.
The diagram below the current unified accounting system, the proposed model and additions, (model), and marked in blue and red, the planned No. 3, below:
3. In the area of decision-making:
Standardized accounting system pointed to a range of text reports, prepared by the Economic Unity and submitted to various regulatory and supervisory authorities. Often these reports are prepared to the satisfaction of the Department of Economic Unity on the one hand, and the satisfaction of the supervisory authorities of the other hand. This arises from the lack of Aoatar rules governing preparation of these reports, especially in how to classify the reports in the area of cost accounting, and lack of motivation and classification decisions that produce or aim for which these reports. The basic reports produced by the unified accounting system, it is noted, in practical application, that the benefits of these few reports for the purposes of effective management in productive economic units, because they contain historical information late. On adoption of the principle of historical cost (purchase cost or cost of acquisition), it is known that this principle recognizes the registration of the components of the budget on the basis of the cost of acquisition or production, assuming the stability of the purchase power of the unity of cash used in the accounting measurement. Accordingly, this principle does not give a true picture of the economic situation of the unit, and thus the decision-making irrational process, reliance on historical prices, many of the elements of the financial statements should be re-evaluated in a manner consistent with the economy inflationary, which is still high in Iraq.
So I see that the unified accounting system after the update, to be an integrated system of financial accounting and cost accounting and accounting responsibility, should result in the kinds of information and reports, stating in various resolutions.
It can be classified information which is a system for their production, to the following:
1.. According to information in the internal decision-making, any economic unit level. These data must be produced by the system on a regular basis and immediate, to facilitate taking the necessary decisions on the economic unit level process.
2. According to information in decision-making at the sector level, the so-called external information. These can be produced by the system, and submit the reports to the supervisory bodies for coordination between the various economic units supervised by the sector, and to find out any of the economic units can give a return of the investment. We must prepare this information and reports in accordance with the rules of the foundations of a unified and provided for in the framework of the system, even indicators are meaningful, and can even make a comparison between the different economic units, and it's easy to measure their performance.
3. Information on the national level. And it is becoming increasingly important in light of this information-oriented economy or planned. It can be produced by the accounting system within the economic unity and brought to sector supervisor, then the sector, in turn, the lifting of this information to the various affiliated units, trying to coordinate between the various sectors at the national level, so as to rationalize the social policy related to the planning of production, and national spending , tax policies, and pricing of various products for the purpose of domestic and export, and the study of production and energy production elements, policies and funding, and loans and investments, whether internal or external.
As embodied the importance of this information in the calculation of the national income, and gross national product and net process, and the preparation of the industrial tangles tables, ( input-output ) , they may also reflect the clarity of economic ideology - social community, and so on.
He proposed to achieve these objectives include: -
. The need to develop a guide to decision-making positions, and classification of these decisions in order of importance, according to the administrative level of him. The move makes it easier for limitation of liability.
. Developing a framework for how to prepare the information and accounting data necessary not making decisions, and foundations that can be invoked when preparing, and presenting various forms, (tables, graphs), to the concerned authorities, so as not to be subject in large part to the appreciation and diligence. It can in this area to take advantage of financial analysis, financial ratios and economic indicators and comparisons, and to take advantage of the various cost concepts, like, lost opportunities, and the cost of alternatives, and cost differential, and the cost of changing ... etc. (very good) suspension for deletion later !!
. Must follow the rules and accounting policies, and the use of professional knowledge of international accounting standards, auditing and financial analysis, which helps to disclose such information and data on the basis of good quality, rather than quantity, and reflect the basic facts and relationships that relate to loneliness economic development.
. The preparation of financial statements requires transparency, financial reporting even be capable of understanding, should also
Taken into account the qualitative characteristics of accounting information, when preparing the financial statements and costs.
The diagram below the current unified accounting system, the proposed model and additions, (model), and marked in blue and red, the planned number 4 below:
Theme IV: Summary and conclusions:
Standardized accounting system that we have, not uniform in the strict sense, [Ooualemktml], of the word. Therefore there is an urgent need to update it and to make the necessary reforms needed in the composition of linking these activities practiced usually all medium and large production units in a single accounting system, so that addresses the records of these activities, and then consolidated a way that facilitates its application in all branches of the national economy process, so that it can System production of economic information necessary to the process of decision-making at all the different administrative levels. This system is characterized by Baksameen, financial accounting and cost accounting. Could only system consists of financial accounting, without costs, especially for small production units, which do not need to use cost accounting as analytical, and can also be through financial accounting, provide those responsible accounting information total necessary to the process of economic decision-making, as applied Currently this form.
As well as there can not be without cost accounting and financial accounting, especially in medium and large industrial units, which need to produce economic information analytical all administrative levels. Among the benefits of this division, too, he explains the strong relationship between financial accounting cost accounting, by comparing and matching the total recordings that are recorded in the financial accounting, and those analytical recordings pertaining to costs and resources, and is recorded in the cost accounting through the documents so. Being the first division to the terms of the costs according to positions of responsibility, and is recorded in the books and records of a statistical cost accounting, as it can be used also in restrictions records of these items, especially in medium and large industrial units.
HACCP did not address how to classify to reports in the area of cost accounting. The industrial units are obliged to submit Tgarirmalah produced by financial accounting to those responsible at times as defined for the purposes of control and tax.
And the most important basic reporting system which is defined by:
. The balance sheet;
. The result accounts (current operations);
. Financial situation.
In practice, it notes the lack of benefits of these financial reports for the purposes of effective management. Nor help subordinates in medium and large industrial units, that perform administrative functions optimally, being contains historical information and later. So must the concept of expanding the system to produce the necessary economic decision-making level of information on the unit, sector, and at the macroeconomic level.
It is necessary to use more units in the tabulation of the elements of the cost when the accounting system for the costs of the application. For example, in the small economic units which is characterized by its parochialism, the nature of the work does not need to produce a large amount of management information, one could only two types of tabs to be including qualitative tab. But in the medium and large units, prefers a more than Tbooiban in that one, but in some cases, (if available supplies necessary to do so), to follow all these types of tabs mentioned, and the preparation of cost reports according to each type, as shown here in the chart No. 5 below:
On the other hand, we find that a more of the cost elements constitute a great difficulty in the process tab of life, in terms of multiple recordings and records and the increase in staff, particularly if the system is based on the manual application performance. And it can eliminate these difficulties using the electronic information programs in the production process, making it easier to apply more than one tab for the cost elements across the different stages of the process, and then the immediate preparation of reports and directed the channel to connect to the appropriate management level. If the best reporting systems design, and specify clearly runs in lines, it will lead to the integration of control and information production process .
The proceedings before the whole in the model, (Model), to design a uniform system of costs on a scientific basis. , Will surely make multiple objectives, including:
1 information and data base necessary for economic decision-making process of the construction costs;
2 to reduce costs, raise production efficiency, quality and quality care, and evaluating administrative efficiency;
3 meet the needs of investors and financiers;
4 professional qualification of human and trained forces in the area of cost accounting;
5 to find compatibility between the accounting and financial reporting systems which get organized in a variety of sources, such as the law of trade, tax, the assets of the state budget principle, the Code of Accounting commercial and industrial companies of
(In Iraq unified accounting system), associations and other, within a unified Iraqi accounting system;
6 out standard criteria, that would be acceptable at the global level.
7 activating the role of the Commission accounting organization and the Board of Accounting Standards and Control in the Republic of Iraq, in order to take on the task of reform and development of the accounting system, the aim of unification, and stimulation on the principle of coordination and harmonization and standardization with international accounting standards in this area.
Mlhak1- list the cost of production report for the period from .......... To .........
The cost of materials used 0.1
The first two articles
Purchases materials +
The last Mdh- materials
Materials actually used in production =
Other costs. 3
3 +2 +1) cost of production). 4
Production is fully Olmdh + 0.5
The last production is fully Madh-. 6
The cost of making goods. 7 (4+ 5-6)
Appendix 2 - List Alentijh- account profit and loss report
Net sales. 1
The cost of the goods Almentjh-
Merchandise first full length
The cost of making the goods 7, from the previous report +
Value of the goods intended for sale =
The last full merchandise Mdh-
Cost of goods sold = 0.2
The total profit or loss (1-2 = 3)
Costs to sell (marketing), administrative, show it is possible analytically 0.4
Net profit or loss (3 -4 = 5).
-13 Represents the trading account
-4 5 represents the profit and loss account
3. Extension balance sheet dated ........................
Assets (assets )
Capital and the right of property
+ - Profit or loss
- The demise of buildings
Allocations and reserves
Machinery and equipment Office
Unpaid accrued expenses
- Machinery and equipment Andsar
Mqbozh revenues in advance
- The demise of transportation
Machinery and equipment production
Due to banks
- The demise of the machinery and equipment production
Different Accounts Payable
The different types of stock
Revenue is due Mqbozh
Expenses paid in advance
City loans, long and short term
- A reserve for bad debt
Other City accounts
Cash on hand and banks
In the box
In the bank
This budget is used before the emergence of the unified accounting system, an accounting system according to the English, any fixed assets and liabilities First, then-current assets and requirements.
* distinguish between productive and non-productive costs at the level of the national economy are important in the concept of calculating the national income. In a socialist economy, entering in the calculation of national income only productive sectors, without service, and its recent share of national income distribution process through the state budget. Contrary to what Homtba in capitalist countries, where the national income is being calculated on the basis of the productive and service sectors together.
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