In 1980s, Kaplan and Johnson have levelled strong criticism on management accounting practice in the book tittle: Relevance Lost. In response to these criticism, a number of innovative management accounting techniques have been developed across a range industries such as strategic management accounting and balance scorecard. The new techniques have affected the whole process of management accounting and have shifted its focus from a simple role of cost to a more sophisticated role of value- creating. (Abdel Kader and Luther, 2004) Required: Illustrate and explain in detail the evolution in the management accounting focus as identified by International Federation of Accountants (IFAC), 2002 for stage three and four. Discuss the important of the tool recommended in both stages.