Management accounting should not fit the straitjacket of financial accounting." Explain and give an example.

A.Financial accounting is constrained by generally accepted accounting principles. Companies listed on Stock Exchanges must comply with IFRS and other companies must comply with CICA standards when reporting to external parties. Management accounting is not restricted to these principles. An example would be management accountants can use measurement methods of the value of assets or liabilities not permitted under GAAP.

B.Financial accounting is constrained by generally accepted accounting principles. Companies listed on Stock Exchanges must comply with IFRS and other companies must comply with CICA standards when reporting to external parties. Management accounting is not restricted to these principles. An example would be that management accountants cannot change the method of the value of assets or liabilities not permitted under GAAP.

C.Management accounting is constrained by generally accepted accounting principles. Companies listed on Stock Exchanges must comply with IFRS and other companies must comply with CICA standards when reporting to external parties. Financial accounting is not restricted to these principles. An example would be financial accountants cannot use measurement methods of the value of assets or liabilities not permitted under GAAP.D.Management accounting is constrained by generally accepted accounting principles. Companies listed on Stock Exchanges must comply with IFRS and other companies must comply with CICA standards when reporting to external parties. Financial accounting is not restricted to these principles. An example would be financial accountants can use measurement methods of the value of assets or liabilities not permitted under GAAP.