SOME ASPECTS OF ACCOUNTING AND MANAGEMENT ACCOUNTING DURING ECOCONOMIC DOWNTURNS

Economic slowdown and downturn creates new situation for every organisation, no one can avoid facing to new situation createdby the global financial-, and economic crisis. All of the organisational function should reconsider its own role within the company due to thenew circumstances, Accounting and Mangement Accounting can not be exception, but they have more complex and emphasized role in thesedifficult times. In the following paper I can not avoid to mention some general statement about importance of accounting and accountingprinciples, while there are a number of critical accounting and financial reporting issues that accountants and auditors should consider. In theframework of the paper I can not face with all relevant issues of the topic, but after some general statement I would like to highlight somespecial area regarding to management accounting, which can be more important during these challenging time for decision makers andaccountants. Regarding to balance sheet analysis its important to mention current debate about fair value comparing with historical cost fromaccounting point of view, on the other hand from the view of management reporting system I would like to highlight the importance ofworking-capital indicators. More practical topic is the crucial role of budgeting and forecasting during economic downturns, and at the end Iwould like to show why it is more important monitoring price variance and indirect cost allocation in these uncertain business circumstances.