This presentation is devoted to an outline of a research project in the field of accounting, which is going to focus on managerial accounting tools that are used within the telecommunications sector in the UAE.
Background
The UAE telecommunications sector:
- is well-developed and rapidly expanding;
- has two major operators: Etisalat and du.
Modern accounting experiences:
- an increase in the amount of accounting data;
- a need for best methods and practices.
The telecommunications sector of the country has been rapidly developing in the past decades, and currently, it has two major operators: Etisalat and du. Nowadays, managerial accounting finds itself in a turbulent environment as the amount and scope of accounting data proceed to expand, which calls for the development of new methods and tools and the improvement of the currently employed ones. The proposed study is going to review this process from the point of view of the two major telecommunication operators of the UAE.
Managerial Accounting (MA)
- presupposes providing accounting information for managerial decisions;
- fosters strategic partnership between accountants and managers;
- creates value;
- aims to achieve companies’ objectives (e.g. profit maximization).
Before proceeding, it is necessary to review the concept of managerial accounting (MA) and its tools. MA can be defined as the production of accounting information that can facilitate managerial decisions. As a result, it is apparent that MA is strategic, helps to develop a meaningful partnership between management and accounting, and eventually creates value and helps a company to achieve its objectives. Thus, the significance of MA for a company’s strategic development is notable.
MA Tools
MA tools intend to:
- maximize profit;
- assist in planning;
- detect inefficiencies;
- distribute knowledge.
Used in the UAE:
- ABC: effective in analyzing costs and activities and assigning indirect costs.
- ABM: uses ABC data strategically.
MA tools are numerous, and their uses also vary, but they typically aim to maximize profit, distribute knowledge, define the issues and ineffectiveness at various levels of operations, and provide information that facilitates planning. A preliminary research allows determining two MA tools that are most often employed in the UAE companies: they are ABC and ABM. Neither of them can be regarded as a solution to every issue, but both are rather powerful and effective in their areas: ABC is especially useful in cost and activities analysis, and ABM is a helpful strategic tool. This information is going to be reviewed in the proposed study within the context of the UAE telecommunications sector.
Research Objectives and Hypotheses
Aim: determining preferred MA methods/tools in the UAE telecommunications sector.
Hypotheses:
- A positive correlation between the size of the company and the complexity of MA tools employed in it.
- Long-term MA tools are prioritized.
Thus, the aim of the proposed research consists of determining the most popular MA methods, tools, and approaches within the telecommunications sector of the UAE. Based on a preliminary literature review, it can be hypothesized that there is a correlation between the size of a company and the complexity of the tools that it employs; also, it is assumed that the companies of interest are likely to prioritize long-term planning and budgeting tools.
Methodology
Qualitative interviews (10-50 minutes): deep insights and understanding:
- 2 face-to-face;
- 8 phone interviews.
Sample: accounting managers of Etisalat and du; at least 5 years of experience.
Data analysis: categorization.
The methodology of the study is going to be qualitative because the insights and understanding produced by this approach are likely to be beneficial in achieving the aim of the study. In total, two face-to-face and eight phone in-depth interviews with open-ended questions are going to be carried out. The sample will consist of accounting managers of the two major telecommunication companies of the UAE. Only experienced employees will be interviewed, which means that the study will recruit only the managers with at least five years of experience. The data will be analyzed with the help of thematic analysis by categorizing the information.
Conclusion
Under-researched but important topic.
Expected results:
- characterizing the use of tools in the sector (limited?);
- specific tools;
- the most popular tools (ABC, ABM?);
- conclusions on the need for innovation.
The study is justified by the fact that the topics of the use of MA tools within the sector and in the UAE are rather underdeveloped, but they are critically important due to the significance of MA for the strategic development of a company. The expected outcomes include the conclusions on the patterns of the MA tool use within the sector. In particular, it is hoped to determine whether the use of the tools is satisfactory or not, which tools are used, and which tools can be regarded as the most popular ones. Since Etisalat and du are the only prominent companies in the UAE telecommunications sector, the findings of this study are likely to apply to the sector in general. Also, it is not unlikely that suggestions for innovation will be based on the analysis of the data. Thus, the study can have a theoretical and practical value for modern telecommunication companies of the UAE.
