Management accounting practices and the turnaround process

Abstract

Purpose

The paper aims to provide a longitudinal view of successful turnaround phases and of how management accounting practices played a significant role in improving performance in one company.

Design/methodology/approach

The company provided internal documents to cover the period of the study and permitted access to key individuals who were able to elaborate and clarify the motives which underpinned the numbers reported and the strategies employed.

Findings

The success of the corporate turnaround appeared to be attributable to an effective leadership style that was able to motivate and support the employees whilst making strategic changes to the organization's capital, financial well‐being and operations.

Originality/value

Recognition of the key factors in the turnaround process has implications for the implementation of corporate recovery strategies elsewhere.

Citation

Hasniza Haron, N., Kamal Abdul Rahman, I. and Smith, M. (2013), "Management accounting practices and the turnaround process", Asian Review of Accounting, Vol. 21 No. 2, pp. 100-112. https://doi.org/10.1108/ARA-01-2012-0001