Recently, the Ministry of Finance ("MOF") has issued the Basic Guidelines on Management Accounting (the "Guidelines"), with effect as of the date of issuance.
The Guidelines provide a basic framework covering the objectivities, principles and elements, and explain each element with a chapter. Chapter I sets out the general provisions, including the basis for formulation of the Guidelines, scope of application, and objectivities, principles and elements of accounting management; Chapters II to V expound the four elements mentioned in the general provisions, namely, the application environment, management accounting activities, tools and methods, and information and reporting. Specifically, the application environment of management accounting lays the foundation for an entity to apply management accounting; the management accounting activities mean the specific work on management accounting done by an entity; the tools and methods are the concrete means used for achieving the objectivities of management accounting; and the management accounting information involves the financial and non-financial information used and generated in the course of conducting management accounting activities, which forms the essential part of management accounting reporting.