Management Accounting as a Profession in Australia: Role ... - AWPA

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CAFS Occasional Papers Series
November 2011
Management Accounting as a Profession in
Australia: Role and Trends
Dr Erwin Waldmann
Centre for Applied Financial Studies (CAFS)
School of Commerce
University of South Australia
This research study was commissioned by the
Institute of Certified Management Accountants of Australia
and undertaken by CAFS at the University of South Australia.

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Management Accounting as a Profession in
Australia: Role and Trends
Executive Summary
This study was commissioned by the Institute of Certified Management
Accountants (ICMA) and carried out by the Centre for Applied Financial Studies
(CAFS) at the University of South Australia to independently answer three research
questions posed by the ICMA: (1) are management accounting skills in demand in
Australia and if yes, what is driving this demand? (2) are there adequate
professionals in Australia with the skills and experience in management accounting
to meet these projected demands? and (3) should any gaps in demand be filled with
overseas qualified management accountants?
The study provides evidence from both primary and secondary data analyses, which
includes the findings of a recent survey of Australian employers of management
accountants, that there is and will be an increasing demand for management
accounting skills in Australia with the key forces driving such demand being the
increased importance of cost management; corporate social responsibility; carbon
accounting; risk management; business analysis, corporate governance and asset
valuations. The study also demonstrates that there are inadequate professionals in
Australia with the skills and experience in management accounting to meet such a
projected demand. As it takes a minimum of 5-years after university graduation for a
professional to be regarded by industry as a properly trained and sufficiently
experienced management accountant, the study concludes that Australia has very
little option but to fill the supply-side shortfall in the short-term with overseas qualified
management accountants.
Acknowledgements: Thanks is given to Dr. Amanda Carter, of the School of Commerce,
University of South Australia for compiling the data download from the seek.com website; to
ICMA, CIMA and CPA Australia for providing the membership statistics used in this study;
and to the ICMA for providing the names and network connections to contact for the
questionnaire survey.

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Introduction
In light of the inclusion of management accounting as "skilled employment" for
immigration purposes (Department of Immigration and Citizenship, 2010), this
specialisation of accounting has been put under a spotlight. The two key questions
that need to be continually answered in terms of workforce planning are:
1. Will there be a workforce demand for management accountants in Australia in
the future; and if so, will the existing skills base meet this demand, and if not,
will Australia need to turn to immigration to cover any unmet demand?
2. What conclusions can be drawn about the role of education and ongoing
professional training in meeting future workforce demand?
Philip Bullock, Chair of Skills Australia, stated in his letter at the opening of a report
on the Australian workforce futures, noted that the vision of the government is to
ensure that:
“Australia has the workforce capability it requires for a productive, sustainable and
inclusive future, and that Australian enterprises have the capacity to develop and use
the skills in their workforce to maximum advantage for the benefit of industry and the
community”
While it is recognised that there are limitations to workforce planning, some form of
planning will always be part of the education, training and the immigration agenda.
Also, it is clear that a country like Australia would need to focus on an ageing
population and both new and replacement demand for skills required by the
workplace.
At a recent seminar on the Labour Market, Skills Demand and Skills Formation
(Lewis, 2008) it was recognised that some key features of any system of workforce
planning are the need:
• to build early warning into the system of planning
• to ensure adaptive capacity in the system
• to focus on the areas of greatest payoff

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• to consider the role of immigration and how it is used
• to better recognise individuals’ skill levels (i.e. the recognition of prior learning
and the recognition of current competence)
• to recognise that job vacancies, unemployment rates and wage rates are
good sources of information.
This paper focuses on management accounting in Australia (ANZSCO 221112). 1
Those practising the skills of management accountants may also be known as cost
accountants, financial analysts, businesses analysts, financial controllers, risk
managers, etc. Many having the title of financial accountant also perform
management accounting tasks, although any accountant would acknowledge that
management and financial accounting are not substitutes. Under ANZSCO,
management accountants ‘plan, review and administer accounting systems and
procedures, analyse the financial information needs of organisations, provide advice
on financial planning and risk management, and provide management with reports to
assist in decision-making’. Management accountants also provide insight into cost
performance and support the implementation of benchmarking and continuous
improvement initiatives.
Financial accountants fall within ANZSCO’s Accountant (General) skill level and they
‘plan and provide systems and services relating to the financial dealings of
organisations and individuals, and advise on associated record-keeping and
compliance requirements’ (ANZSCO 221111). Although the ANZSCO website states
that registration or licensing is required for both categories of accountants 2 , there are
those who practise as an ‘accountant’ without formal accountancy qualifications.
However, employers usually recognise only those accountants’ registered, certified
or licensed by a generalist 3 or specialist 4 accounting professional body.
1 Australian and New Zealand Standard Classification of Occupations, First Edition.
2 http://www.abs.gov.au/ausstats/abs@.nsf/Product+Lookup/1220.0~2006~Chapter~UNIT+GROU
P+2211+Accountants.
3 Such as CPA Australia (CPAA) and the Institute of Chartered Accountants of Australia (ICAA).
4 Such as the the Institute of Certified Management Accountants (ICMA) or the Chartered
Institute of Management Accountants (CIMA).

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Research Questions and Methodology
Management accounting was included as "skilled employment" for immigration
purposes only in 2010. This was due to research undertaken by Skills Australia on
Australian workforce futures indicating that there would be a need for such skills in
the future and that the relatively low number of people identifying themselves as
‘management accountants’ in the Australian census (2006) was inadequate to meet
this demand (Table 1).
Table 1: Management Accountants as a Percentage of
Accountants in the Australian Census (2006)
Men Women All
New South Wales 2.43% 2.39% 2.41%
Victoria 2.25% 2.65% 2.43%
Queensland 2.46% 1.95% 2.20%
South Australia 3.50% 3.07% 3.30%
Western Australia 2.75% 2.19% 2.50%
Tasmania 2.44% 3.06% 2.70%
Northern Territory 4.76% 5.69% 5.28%
Australian Capital Territory 3.54% 5.08% 4.30%
Other territories 0.00% 0.00% 0.00%
Australia 2.51% 2.49% 2.50%
(See Appendix 1 for Details)
The low percentage of respondents self-classifying themselves as ‘management
accountants’ in the census (2006) data could be interpreted in two diametrically
opposite ways; (1) that there is a significant unmet demand for these skills; or (2)
historically there has been very little demand for these skills. A third alternative point
could be that (3) not all management accountants may be accurately self-identifying
themselves given that the term ‘management accountant’ is not used uniformly
among the profession (see later discussion). It must be stressed that the volume of
management accountants in Australia is not on its own an indicator of whether or not
demand can be met. This study was therefore undertaken to investigate the role and
demand for those individuals having the skills and undertaking the tasks that are
considered holistically as ‘management accounting’ and to triangulate the Census
(2006) information with other sources of information such as membership statistics of

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the professional accounting bodies in Australia; job advertisements for roles
associated with the body of knowledge termed ‘management accounting’; and
reports pertaining to future workplace demand for management accountants. The
study therefore will include (1) the numbers and trends of members identifying as
management accountants with the professional associations; (2) the different job
titles used to describe management accounting roles; (3) management accounting
employment trends from recruiters' perspectives; (4) employer perceptions regarding
the forces driving the demand for management accounting skills; and (5) the views
regarding demand by the management accountants themselves.
The following three research questions form the basis of the study:
1. Are management accounting skills in demand in Australia and if yes, what is
driving this demand?
2. Are there adequate professionals in Australia with the skills and experience in
management accounting to meet these projected demands?
3. Should any gaps in demand be filled with overseas qualified management
accountants?
The research methodology will be based on an analysis of both primary and
secondary data. The primary data analysis will focus on the job advertisement trends
of recruitment firms (principally the Seek.com website); and the responses of a
questionnaire survey sent to the CEO/President; CFO/Finance Director: HR
Director/Manager; and Management Accountant of 112 large companies in Australia.
The secondary data analysis will focus on the membership statistics of the
professional accounting bodies in Australia (principally the ICMA, CIMA and CPA
Australia), the published government reports regarding skills planning in Australia
and the industry skills papers from recruitment firms (like Hays and Lloyd Morgan
Australia).
What Is Management Accounting?
The profession of management accounting is unique. It applies professional
knowledge and skill in the preparation and presentation of important decision-making
inputs; inputs that go beyond simple collation and analysis of only financial data for

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regulatory reporting (Compliance). Those with management accounting skills assist
management in the total planning, strategy and control of an operation (including
information management, treasury, efficiency auditing, marketing, valuation, pricing
and logistics).
The need for risk assessment and comprehensive forward planning that takes into
account multiple factors has long been recognised as paramount by boardrooms
around the globe. These skills are the stock and trade of a management accountant
and go beyond the practice of general accounting of providing “just the numbers”.
Management accounting professionals are highly-regarded by senior management
and leading industry leaders overseas. Worldwide, it has been accepted and
acknowledged by industry and governments that the profession significantly differs to
that of a generalist accountant practising in the field of financial reporting and
auditing. The major differences centre on the focus of the general accountant being
‘regulatory and compliance’ based; whereas that of the management accountant on
running a better business or organisation. This research study hopes to establish if
there is a similar level of need, recognition and regard for management accounting
professionals in Australia.
Management Accountants in Australia
Identifying the number of management accountants in Australia is challenging. The
2006 census showed only 2,885 individuals classified themselves as management
accountants in Australia (Appendix 1). In order to triangulate this data, both
generalist accounting bodies and the specialist management accounting bodies were
approached for membership data. The ICMA, CIMA and CPA Australia provided
information on management accountants, but the Institute of Chartered Accountants
of Australia (ICAA) was unable to separate its members into these two categories of
accountants despite being a skills assessment authority of management accountants
for immigration purposes. It was ascertained that the three professional bodies had
for the same year (2006) 14,647 members identified as management accountants
(see Figure 1). Whilst there is likely to be some double-counting as the specialist
accountants also had generalist qualifications, we are confident that there were over
12,000 individuals describing themselves as management accountants in their
professional organisations in 2006 (Figure 1).

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This graph shows the difference between members of professional bodies who
nominated as management accountants versus census data. It is clear that the
number of management accountants from census data is significantly lower than for
the members of professional bodies. This may, in part, be explained by members of
professional bodies indicating that they were Australian residents but practising
overseas or temporary travel issues on census night. However, Figure 1 clearly
indicates that the number of people self-identifying their occupation as a
‘management accountant’ domiciled in Australia on the census was significantly
lower than those identified in the data base of ICMA, CIMA and CPA Australia for the
same period. This discrepancy may well hold in the recently concluded 2011 census.
Figure 1: Management Accountants in Australia: 2006
16,000
14,647
14,000
12,000
10,000
8,000
6,000
4,000
2,000
2,885
Series1
0
Professional Bodies
Membership (2006)
Census Statistics (2006)
Part of the problem in this discrepancy between the Census and professional bodies’
figures is the position titles being used; with management accounting covering a
range of positions in which these words are not used. This includes instances where
‘accountant’ does not appear in the title at all. A recent survey of Seek.com’s
positions vacant revealed the range of titles attributed to position advertised under
the ‘management accounting and budgeting’ vacancies. There were 667 positions
included in this search with 31 position titles. 5 To analyse this further, three main
5 For expediency some of these position titles were merged into a single category on the basis that variations
within the title were considered insufficient to warrant separate classes.

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classifications of titles were developed: (i) those including management accountant
in the title, (ii) those including accountant but not management accountant, and (iii)
those which did not include accountant or management accountant in the title. This
will be discussed later in the study.
The Demand for Management Accountants in Australia
As the world braces for another downturn (or even recession) it is interesting to note
the observations of Department of Education, Employment and Workplace Relations
(DEEWR) after the 2008 Global Financial Crisis (GFC). According to DEEWR’s
Labour Market Ratings (2009) report, employers then experienced difficulty in
recruiting management accountants in all Australian States and Territories. The
DEEWR (2009) reports state that individuals who had skills and experience in
management accounting were in high demand during that period; and that most
management accountant vacancies were at senior level. Thus the opportunity cost of
the skill shortage for management accountants at that time was high.
Analysis of Job Vacancies
DEEWR (2009) states that although, on average, there were 36 applications
received per vacancy, only 1.6 applicants were considered by employers to be
suitable. Typically, vacancies for management accountants were open only for
senior professionals who had several years experience. When vacancies were not
filled, it was usually because employers sought candidates with high levels of
experience, knowledge or qualifications. Several vacancies were for positions
requiring industry-specific knowledge, such as manufacturing, and prior industry
related experience was required for these roles. Such experience is usually found
only in individuals who have done specialist professional qualifications in
management accounting. DEEWR (2009) also states that employers commented
that it was difficult to find senior management accountants as firms and companies
were undertaking strategies to retain highly skilled and experienced staff during the
economic downturn that followed the GFC. Thus, although each vacancy at that time
attracted in excess of five applicants (with the vast majority attracting in excess of
30), most of these applicants held only generalist accounting qualifications. The
DEEWR (2009) report states that most unsuitable applicants were qualified

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accountants, but that they lacked the particular experience or skill set in
management accounting that were sought by employers.
Is this situation likely to recur in Australia in the future, as we see more volatility in
the economy? Table 2 shows that a recent survey undertaken for this paper of
Seek.com’s positions vacant, of a total of 667 the management accounting and
budgeting vacancies, 52.32% (349/667) included the words ‘management
accountant’ in the position title.
Table 2: Management Accounting and Budgeting Vacancies with “Management
Accountant” in the Position Title
Management Accountant
Senior Management
Accountant
Group Management
Accountant
Management Accountant
Analyst
Divisional Management
Accountant
Mine/Site Management
Accountant
Commercial Management
Accountant
Budget Management
Accountant
Total
N 279 48 8 6 3 3 1 1 349
% of all job
vacancies
(n=667) 41.83% 7.20% 1.20% 0.90% 0.45% 0.45% 0.15% 0.15% 52.32%
% of all
positions with
‘management
accountant’ in
title (n=349) 79.94% 13.75% 2.29% 1.72% 0.86% 0.86% 0.29% 0.29% 100%
seek.com’s positions vacant (August, 2011)
Of these positions, 79.94% were for ‘management accountants’ without further
qualification to the title. An additional 13.79% wanted a senior management
accountant. The remaining positions sought specific specialisation within
management accounting including group, site (especially mining), commercial or
budgetary foci. This indicates that ‘management accounting skills’ should be
distinguished from the job title of ‘management accountant’, as 48% of
advertisements that were relevant for those having management accounting skills
were not given the position title of management accountant.

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Those positions advertised in Seek.com’s positions vacant under the ‘management
accounting and budgeting’ vacancies with ‘accountant’ only in the title, but without
specific reference to management accounting (n=189/667) accounted for 28.34% of
vacancies listed (Table 3).
Table 3: Management Accounting and Budgeting Vacancies with “Accountant”
in the Position Title
Accountant/ Senior
Accountant
Project/ Development/
Plant/ Site/ Mine
Accountant
Corporate/ Company
Accountant
Cost (and Inventory)
Accountant/ Analyst
Business and Performance
reporting accountant
Systems/processes
Accountant/Analyst
Commercial Accountant
Senior Project Accountant
Tax accountant
Total
N
81 46 15 13 11 11 10 1 1 189
% of all job
vacancies
(n=667)
% of all
positions with
‘accountant’ in
title (n=189)
12.14% 6.90% 2.25% 1.95% 1.65% 1.65% 1.50% 0.15% 0.15% 28.34%
42.86% 24.34% 7.94% 6.88% 5.82% 5.82% 5.29% 0.53% 0.53%
Of these 42.86% used the generic designation of ‘accountant’ or ‘senior accountant’.
A significant proportion of this category (24.34%) use had a focus on well-defined
areas such as projects, plant, site, or mine accountant. Once again this
demonstrates that if one moves away from the regulatory requirements of financial
reporting and auditing, most accounting jobs would require the skills and technical
knowledge gained in the specialisation of management accounting.
The final class of positions under the ‘management accounting and budgeting’
vacancies’ that did not include any reference to ‘accountant’ or ‘management
accountant’ in the position title (Table 4) accounted for 18.44% of the positions listed
(n=123/667). Four position titles dominated this category: business support

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analyst/manager (24.39%), financial analyst (21.95%), financial controller/manager
(17.89%), and commercial controller/manager (10.57%). The absence of the words
‘accountant’ or ‘management accountant’ serves to mask the relationship of such
positions to management accounting functions and impacts on the ability to assess
the true number of management accounting positions, as well as the scope and
scale of the demand for management accounting skills in Australia.
In contrast to positions under the ‘management accounting and budgeting’
vacancies, a search of Seek.com in the ‘financial accounting and reporting’ category
revealed 1025 vacancies – accounting for some 60.58% of all vacancies in these two
categories (Table 5). Taking a generalist body like CPA Australia, where the general
accounting / management accounting representation is 85% to 15% in the current
membership 6 , there seems to be a disparity with the current occupation demand
where the analysed job advertisements had a 60:40 split. As such there appears to
be more than enough local members to meet the current demand for general
accountants but not for management accountants. Clearly this indicates that neither
the generalist bodies, nor the specialist bodies, are able to meet the current demand
for management accountants; and that encouraging the immigration of properly
qualified overseas management accountants to Australia is the only viable workplace
planning solution to meet the skill needs of the country in the future. In the longer
term, specialist professional organisations like the ICMA, and also university masters
degree programs should be gearing up to educate and train management
accountants locally.
6 According to data provided by CPA Australia, 12,270 of a total of 82,455 CPA’s were categorised as
‘management accountants’ at the end of 2010. However, the education and training of those classifying
themselves as management accountants in the Generalist bodies such as CPA Australia (i.e. only one
elective course in management accounting in the CPA program) would be less focused than those trained as
management accountants in specialist bodies such as ICMA and CIMA (6 courses). The ICMA is the only
professional body in Australia requiring Master’s degree level educational training in management
accounting and 5 years relevant experience.

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Table 4: Management Accounting and Budgeting Vacancies without ‘Accountant’ or ‘Management Accountant’ included In
the Position Title
Business Support
Analyst/ Manager
Financial Analyst
Financial Controller/
Manager
Commercial Controller/
Manager
Planning/ Budgeting /
Forecasting Manager
Finance Partner/ Manager
Commercial Analyst
Capital Budgets
Management
Accounts Officer/
Bookkeeper
Consultant
Supply chain analyst
Product controller
Strategy Analyst
Total
N
30 27 22 13 7 6 5 3 2 5 1 1 1 123
% of all job
vacancies
(n=667)
4.50% 4.05% 3.30% 1.95% 1.05% 0.90% 0.75% 0.45% 0.30% 0.75% 0.15% 0.15% 0.15% 18.44%
% of all
positions
without
‘accountant’
in title
24.39% 21.95% 17.89% 10.57% 5.69% 4.88% 4.07% 2.44% 1.63% 4.07% 0.81% 0.81% 0.81%

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Table 5 shows the results for those financial accounting and reporting vacancies in
which the word ‘accountant’ appears. This represents 820 of the 1025 vacancies
(80%).
Table 5: Financial Accounting and Reporting Vacancies with “Accountant” in
the Position Title
Position title N % of all % of position titles with
vacancies ‘accountant’
Financial Accountant 306 29.85% 37.32%
Senior Financial Accountant 119 11.61% 14.51%
Accountant 126 12.29% 15.37%
Company/ Corporate Accountant 53 5.17% 6.46%
Senior Accountant 45 4.39% 5.49%
Reporting Accountant 39 3.80% 4.76%
Specialist Accountant 23 2.24% 2.80%
Commercial or Business Services 18 1.76% 2.20%
Accountant
Project/ Site Accountant 17 1.66% 2.07%
Fund Accountant 16 1.56% 1.95%
Management Accountant 12 1.17% 1.46%
Property Accountant 7 0.68% 0.85%
Joint Venture Accountant 6 0.59% 0.73%
Tax Accountant 6 0.59% 0.73%
System Accountant 5 0.49% 0.61%
Asset Accountant 4 0.39% 0.49%
Trust Accountant 3 0.29% 0.37%
Auditing Assurance 3 0.29% 0.37%
Budgeting and Planning Accountant 2 0.20% 0.24%
Group Controller/ accountant 2 0.20% 0.24%
Administration Accountant 2 0.20% 0.24%
Internal Accountant 1 0.10% 0.12%
Cost Accountant 1 0.10% 0.12%
Operations Manager/ accountant 2 0.20% 0.24%
Statutory accountant 1 0.10% 0.12%
Real Estate Accountant 1 0.10% 0.12%
Total 820
Of these ‘financial accountant’ or ‘senior financial accountant’ constitutes the bulk of
the position titles, i.e. approximately 52% of these positions and 41% of all positions

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in the broader category. The more generic terms accountant, company or cooperate
accountant and senior accountant represent another 224 position (27.3% of
positions with accountant in the title). The remaining positions which contain
accountant in the title reflect a number of specialisations including joint venture
accountant, project or site accountant, and trust accountant.
The remaining 20% of vacancies in financial accounting and reporting category
included titles such as analyst, manager or consultant. A significant number of these
positions (53.5%) were finance managers and 3.8% used either finance analyst or
business analyst. Therefore, unlike the skills required in the management accounting
area that had a number of different descriptions (Table 4), financial accounting job
titles were more aligned with the skill set required to undertake compliance work.
Only 12 (of 1025) of the positions advertised in the financial accounting and reporting
vacancies used ‘management accountant’ in the title and embedded in these figures
was a number of positions which used both financial and management accountant in
the positions, reflecting the range of tasks associated with these positions.
What can be concluded from this analysis is that the division of management and
financial accounting is clouded with position descriptions variously using titles which
do and do not contain the word accounting, may be hybridised roles (that is a
combination of both financial and management accounting), and use alternative titles
for both types of positions. An example of the latter is the prevalence of ‘financial
analyst’ to describe both management and financial accounting roles. However, as a
word of caution, this analysis did not (and could not) control for positions which may
have been double listed in the seek.com database.
While the analysis of the Seek.com done in August 2011 reveals a large number of
vacancies, the recruitment firm Hays (2011) states that in the area of accountancy
and finance, while good candidates are registering and seeking their next challenge,
on the whole Australia’s accountancy and finance market is becoming candidate
short. Similar to the observations in the DEEWR (2009) report two years earlier,
Hays (2011) states that although overall the volume may be high, quality candidate
levels are decreasing. This is most obvious for those candidates with solid
experience, professional qualifications and good stakeholder skills. Such candidates
are aware of rising vacancy activity and the subsequent demand for their skills. They

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have therefore become more selective about their next career move. Good
candidates can expect to have a number of options. Hays (2011) also notes that
there has been an increase in the number of candidates wanting to move out of
accountancy firms (that specialise in financial accounting and taxation) into
commerce and industry (the realm of management accounting).
Analysis of Survey Data of Employers
As discussed in the Research Methodology section, a questionnaire survey was sent
to the (1) CEO/President; (2) CFO/Finance Director: (3) HR Director/Manager; and
(4) Management Accountant of 112 large companies in Australia. The companies
were chosen using the membership data base and LinkedIn network of the ICMA.
Those management accountants so chosen were then encouraged to obtain
responses from the company’s CEO/President; CFO/Finance Director and HR
Director/Manager (as four questionnaires were sent to each company, the total
sample size was 448). There were 168 usable responses (with an overall response
rate of 37.3%). 7 Of these, (1) 22 CEO/Presidents (13.1%); (2) 59 CFO/Finance
Directors (35.1%); (3) 51 HR Director/Managers (30.4%); and (4) 36 Management
Accountant/Other Related Titles (21.4%) completed the questionnaire. There were
37 questions asked on a Likert scale of 1-5, where: 1=Strongly Agree; 2= Agree;
3=Neutral; 4=Disagree; and 5= Strongly Disagree.
For ease of interpretation, the ‘Agree’ categories were combined in the analysis, as
were the ‘Disagree’ categories. As such, the overall response rates are provided in
Table 6 in 3 columns. The response rates for each of the four separate categories
targeted are provided in Appendices 2-5. Given the reasonably high response rates
in each of the four categories, it would be possible to undertake more in-depth
statistical analyses of the responses using analysis of variance and structural
equation modelling. However, in this paper, a simple collation of the responses rate
totals and percentages were considered by the author to be sufficient to provide an
in-depth overview of the forces driving the demand for management accountants in
Australia.
7 As the questionnaire survey responses were anonymous, it cannot be ascertained as to how
many companies provided at least one response. If all four interviewees from a single company
responded (and none did from others) then at a minimum 42 companies responded (37.5%
response rate). Alternatively, if each company provided at least 1 response, then all 112
companies would be represented (100% response rate).

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Table 6: An in-Depth Analysis of the Demand for Management Accountants in
Australia (Total Responses)
n= 168
Demand for Management Accountants (MAs)
Total Numbers
% Total
Agree Neutral Disagree Agree Neutral Disagree
The skill set of a MA is very different to that of a General
(Financial) accountant 152 4 12 90.5% 2.4% 7.1%
The information provided by the MA is focused on decision
making (future). 136 15 17 81.0% 8.9% 10.1%
The information provided by the General (Financial)
accountant is focused on compliance based reporting
(past). 133 14 21 79.2% 8.3% 12.5%
There was an expected increase in demand for MAs due to
the increased importance of Business Analysis in my
industry 129 14 25 76.8% 8.3% 14.9%
There was an expected increase in demand for MAs due to
the increased importance of Risk Management in my
industry 133 16 19 79.2% 9.5% 11.3%
There was an expected increase in demand for MAs due to
the increased importance of Corporate Governance in my
industry 108 31 29 64.3% 18.5% 17.3%
There was an expected increase in demand for MAs due to
the increased importance of Corporate Social
Responsibility (CSR) in my industry 139 24 5 82.7% 14.3% 3.0%
There was an expected increase in demand for MAs due to
the impact of the carbon price legislation to my industry 135 22 11 80.4% 13.1% 6.5%
There was an expected increase in demand for MAs due to
the increased importance of Cost Management in my
industry 165 3 0 98.2% 1.8% 0.0%
There was an expected increase in demand for MAs due to
the increased importance of IFRS and Fair-Value Asset
Valuations in my industry 85 51 32 50.6% 30.4% 19.0%
Our company expects to meet any increased demand for
MAs by hiring individuals with the required skill sets 141 21 6 83.9% 12.5% 3.6%
Our company expects to meet any increased demand for
MAs by outsourcing to Professional MA consulting firms 7 24 137 4.2% 14.3% 81.5%
Our company expects there to be significant competition
for MAs in Australia 138 13 17 82.1% 7.7% 10.1%
There is an inadequate number of accountants trained with
the specialist skill sets of management accounting in
Australia 125 18 25 74.4% 10.7% 14.9%
There is an inadequate number of accountants with senior
experience in management accounting in Australia 144 16 8 85.7% 9.5% 4.8%
Our company expects that the demand would likely need to
be met in part by MAs from overseas 121 21 26 72.0% 12.5% 15.5%
Business Analysis
There is an increased demand for MAs especially in light of
the increased importance of using sophisticated business
analysis tools for strategic planning in my company 138 19 11 82.1% 11.3% 6.5%
There is an increased demand for MAs especially in light of
the increased importance of budgeting and management
control in my company 127 20 21 75.6% 11.9% 12.5%
There is an increased demand for MAs especially in light of
the increased importance of KPIs in performance
management in my company 151 13 4 89.9% 7.7% 2.4%
Risk Management
There is an increased demand for MAs especially in light of
the increased importance of risk management due to the
continuing GFC 149 14 5 88.7% 8.3% 3.0%

18
There is an increased demand for MAs especially in light of
the increased importance of managing strategic risk in my
company 135 25 8 80.4% 14.9% 4.8%
There is an increased demand for MAs especially in light of
the increased importance of managing financial risk in my
company 110 37 21 65.5% 22.0% 12.5%
Corporate Governance
There is an increased demand for MAs especially in light of
the increased importance of compliance in my company's
governance 41 25 102 24.4% 14.9% 60.7%
There is an increased demand for MAs especially in light of
the increased importance of performance in my company's
governance 139 23 6 82.7% 13.7% 3.6%
There is an increased demand for MAs especially in light of
the increased importance of the Strategic Audit in my
company's governance 89 58 21 53.0% 34.5% 12.5%
Corporate Social Responsibility
There is an increased demand for MAs especially in light of
the increased importance of Environmental Accounting in
my company 153 15 0 91.1% 8.9% 0.0%
There is an increased demand for MAs especially in light of
the increased importance of Stakeholder Audits in my
company 138 22 8 82.1% 13.1% 4.8%
There is an increased demand for MAs especially in light of
the increased importance of ethical behaviour in my
company 108 22 38 64.3% 13.1% 22.6%
Carbon Accounting
My company will require the skills of an MA to undertake
carbon sequestration investments 156 5 7 92.9% 3.0% 4.2%
My company will require the skills of an MA to reduce its
significant carbon liabilities 142 15 11 84.5% 8.9% 6.5%
The skill sets required for carbon accounting and
assurance are not available in Australia and consequently
may have to be imported 150 12 6 89.3% 7.1% 3.6%
Cost Management
There is an increased demand for MAs especially in light of
the increased importance of advanced cost management
tools such as Life Cycle and Activity Based Costing in my
company 81 29 58 48.2% 17.3% 34.5%
There is an increased demand for MAs especially in light of
the increased importance of cost reduction and value
engineering initiatives in my company 104 37 27 61.9% 22.0% 16.1%
There is an increased demand for MAs especially in light of
the increased importance of Benchmarking and Lean
Management applications in my company 79 39 50 47.0% 23.2% 29.8%
Asset Valuation
There is an increased demand for MAs especially in light of
the increased importance of using DCF techniques for fair
asset valuations in my company 50 80 38 29.8% 47.6% 22.6%
There is an increased demand for MAs especially in light of
the increased importance of using option pricing
techniques for fair asset valuations in my company 43 100 25 25.6% 59.5% 14.9%
There is an increased demand for MAs especially in light of
the increased importance of expert valuations in fair asset
valuations in my company 106 47 15 63.1% 28.0% 8.9%

19
From Table 6 it can be seen that an overwhelming majority of respondents (90.5%)
considered the skill set of a management accountant is very different to that of a
general (financial) accountant, as the information provided by the management
accountant is focused on future oriented decision making (81%), whilst the
information provided by the general (financial) accountant is focused on compliance
based reporting of past transactions (79.2%). This view is in keeping with the
perception worldwide of a management accountant vis’-a-vis a financial accountant.
The principal force driving the demand for management accountants has been
traditionally the increased importance of Cost Management in a globalised world.
The respondents perceived that this would continue to be an important force in the
coming years (98.2%). In analysing this question further, the increased demand was
mainly due to the increased importance of cost reduction and value engineering
initiatives in the respondents’ companies (61.9%). However, the increased
importance of (1) advanced cost management tools such as Life Cycle and Activity
Based Costing (48.2%); and (2) Benchmarking and Lean Management applications
(47.0%) were not considered to be major driving forces in the respondents’
companies. Given the vast array of tools and techniques make up the body of
knowledge that is ‘strategic cost management’, it was difficult in this study to pinpoint
what the key individual driving forces in this area were. However, the analyses that
follow shed more light on what these forces are.
A key force driving the demand for management accountants was the increased
importance of Corporate Social Responsibility (CSR) in companies (82.7%). In
analysing this question further, the increased demand was (in order of importance)
due to (1) the increased importance of Environmental Accounting (91.1%); and (2)
the increased importance of Stakeholder Audits (82.1%). The demand for
management accountants due to the increased importance of ethical behaviour in
companies had a relatively small majority (64.3%). The author believed that this is
not because ethical behaviour is considered less important by companies, but
because the respondents considered it as a minor driving force in the demand for
management accountants.

20
The respondents were of the strong view that there would be an expected increase
in demand for management accountants due to the impact of the carbon price
legislation in Australia (80.4%). In analysing this question further, the increased
demand was (in order of importance) due to companies requiring the skills of a
management accountant to (1) undertake carbon sequestration investments
(92.9%); and (2) reduce significant carbon liabilities (84.5%). The respondents
believed however that the skill sets required for carbon accounting and assurance
are not available in Australia and consequently may have to be imported (89.3%).
The respondents also expected an increase in demand for management accountants
due to the increased importance of Risk Management in their industry (79.2%). In
analysing this question further, the increased demand was (in order of importance)
due to (1) the increased importance of risk management due to the continuing
effects of the Global Financial Crisis (88.7%) 8 ; and (2) the increased importance of
managing strategic risk (80.4%). Compared to the other response rates the
respondents did not consider that the demand for management accountants was
driven as much by the increased importance of managing financial risk in their
companies (65.5%).
A large majority of respondents (76.8%) expected an increase in demand for
management accountants due to the increased importance of Business Analysis in
their industry. In analysing this question further, the increased demand was (in order
of importance) due to (1) the increased importance of monitoring Key Performance
Indicators (KPIs) in employees and company performance management (89.9%); (2)
the increased importance of using sophisticated business analysis tools for strategic
planning (82.1%); and (3) the increased importance of budgeting and management
control (75.6%).
Another force driving the demand for management accountants was due to the
increased importance of Corporate Governance (64.3%). In analysing this question
further, the increased demand was mainly due to the increased importance of
8 At the time the survey was conducted, October 2011, there were significant doubts regarding
the viability of the Euro zone. As a result the worldwide economy, including Australia was
expected to tighten up again in 2012.

21
performance management in corporate governance (82.7%). Surprisingly, the
increased importance of the Strategic Audit in governance had only a small majority
(53.0%). The author believes that this low response rate is because the strategic
audit is a very new area for companies (let alone management accountants). Clearly,
a further investigation of the methodologies available to audit the future strategies
(e.g. leadership; information security; flexibility, etc.) of the companies is required. As
expected, however, the majority of respondents disagreed (60.7%) that a force
driving the demand for management accountants was the increased importance of
compliance in corporate governance, as this is usually an area in the domain of
financial accountants and lawyers.
Only a small majority of respondents agreed that there would be an expected
increase in demand for management accountants due to the increased importance
of IFRS based Fair-Value Asset Valuations that may need to be conducted (50.6%).
This was mainly due to the increased importance of expert valuations in fair asset
valuations required by companies (63.1%). However, only a small minority of
respondents believed that there would be an increased demand for management
accountants due to the increased importance of using (1) Discounted Cash Flow
(DCF) techniques (29.8%) and (2) option pricing techniques for fair asset valuations
(25.6%). 9
An overwhelming majority of respondents’ believed that their companies expected to
meet any increased demand for management accountants by hiring individuals with
the required skill sets (83.9%) rather than by outsourcing to Professional
Management Accounting Consulting Firms (4.2%). They also expected that there
would be significant competition for management accountants in Australia (82.1%)
and that there is both an inadequate number of accountants (1) trained with the
specialist skill sets of management accounting (74.4%), and (2) with senior
experience in management accounting (85.7%) in Australia. These overall views are
borne out by the earlier analyses in this study using both primary (job
advertisements) and secondary (government reports) data sources with regards to
the expected demand for management accountants in Australia. As such, a large
9 These are valuation techniques in which future cash flows emanating from assets are
discounted to present values to adjust for the time value of money and risk.

22
majority of respondents expected their companies to meet the shortfall in demand in
part by recruiting management accountants from overseas (72.0%).
Conclusions
With the recovery of Australian economy, the future growth in demand for qualified
accountants, especially management accountants, is expected to outstrip the growth
in supply. According to Lloyd Morgan Australia (2010), the demand for accountants
is forecasted to increase by 4.1% over the next three years and the forecasted
increase in supply of accountants for the same period is forecasted to be only 2.6%.
As such, the shortage of management accountants experienced in the last ten years
is likely to re-emerge in the next three years. In addition, new areas are opening up
that require management accounting expertise, such as addressing climate change
problems via carbon audits; ensuring accountability, governance and transparent
costing; and the evaluation of projects in the areas of sustainability and greenhouse
gas emissions management.
The three research questions that form the basis of the study have been answered.
Clearly there is a demand for management accounting skills in Australia with the key
forces driving such demand being the increased importance of cost management;
corporate social responsibility; carbon accounting; risk management; business
analysis, corporate governance and asset valuations. In fact, with another downturn
or recession looming, the primary and secondary data sources analyses indicate that
the lack of supply will become acute as there are inadequate professionals in
Australia with the skills and experience in management accounting to meet such
projected demand. As it takes a minimum of 5-years after university graduation for a
professional to be regarded by industry as a properly trained and sufficiently
experienced management accountant, Australia has very little option but to fill the
supply-side shortfall (at least in the medium-term) with overseas qualified
management accountants.
The Skilled migration program plays a critical role in addressing shortage of qualified
accountants in Australia. According to data from Department of Immigration and
Citizenship (DIMC), Australia had a net gain of around 3,050 accountants per annum
over the five-year period ended 2007-08. Without the continuous inflow of

23
accountants from skill migration program, Australia would face a more acute
shortage of skill accountants. This shortage will be compounded as China’s rampant
growth sucks up much of the accounting talent in Asia, especially management
accountants to power their dominant manufacturing sector. However, a word of
caution is that such overseas qualified management accountants should not ideally
be assessed by Generalist Accounting bodies as these bodies do not possess the
specialist body of knowledge and technical skills required by the Australian
organisations recruiting such professionals.
In conclusion, it is clear that management accounting skills would be very much in
demand in Australia in the medium to long term; and that a number of areas are
driving this demand such that the profession is becoming a ‘blended profession’.
However, projections regarding the number of professionals educated and trained in
Australia with the skills and experience in the emerging areas of management
accounting (such as corporate social responsibility; carbon accounting; risk
management; business analysis and corporate governance) would be inadequate to
meet these projected demands. As such, any gaps in demand would need to be
filled with overseas qualified management accountants.
References
Hays Accountancy & Finance (2011) Commerce & Industry Quarterly Report, July,
Melbourne
Skills Australia (2010), Australian Workforce Futures: A National Workforce Development
Strategy, Commonwealth of Australia, Canberra.
ICMA (2011), The Value of Management Accountants, Institute of Certified Management
Accountants, Melbourne.
Department of Education, Employment and Workplace Relations (2009), Labour market
Ratings, DEEWR National Office, March & October, Canberra
Lloyd Morgan (2010), Accounting Skills Index February 2010, Lloyd Morgan, Brisbane
Department of Immigration and Citizenship (2010), Skilled Occupation List: Amendments to
the Migration Regulations 1994, Commonwealth of Australia, Canberra.
Lewis, P (2008), The Labour Market, Skills Demand and Skills Formation
Occasional Paper 6/200, Skills Australia and The Academy of the Social Sciences in
Australia, Canberra.

24
Appendix 1: Census (2006): Accountant vs. Management Accountant
221111 - Accountant
Men Women Total
n % n % n %
New South Wales 23,672 52.55 21,371 47.45 45,043 100.00
Victoria 17,096 56.98 12,908 43.02 30,004 100.00
Queensland 7,982 48.89 8,345 51.11 16,327 100.00
South Australia 3,755 55.07 3,064 44.93 6,819 100.00
Western Australia 5,579 54.78 4,605 45.22 10,184 100.00
Tasmania 879 58.10 634 41.90 1,513 100.00
Northern Territory 220 43.82 282 56.18 502 100.00
Australian Capital Territory 1,091 51.03 1,047 48.97 2,138 100.00
Other territories 0 0.00 3 100.00 3 100.00
Australia 60,273 53.56 52,260 46.44 112,533 100.00
221112 - Management Accountant
Men Women Total
n % n % n %
New South Wales 589 52.92 524 47.08 1,113 100.00
Victoria 394 52.82 352 47.18 746 100.00
Queensland 201 54.77 166 45.23 367 100.00
South Australia 136 58.37 97 41.63 233 100.00
Western Australia 158 60.54 103 39.46 261 100.00
Tasmania 22 52.38 20 47.62 42 100.00
Northern Territory 11 39.29 17 60.71 28 100.00
Australian Capital Territory 40 41.67 56 58.33 96 100.00
Other territories 0 0.00 0 0.00 0 0.00
Australia 1,551 53.76 1,334 46.24 2,885 100.00

25
Appendix 2: An in-Depth Analysis of the Demand for Management Accountants in
Australia (CEO Responses)
n= 22
Demand for Management Accountants (MAs)
The skill set of a MA is very different to that of a General
(Financial) accountant
The information provided by the MA is focused on
decision making (future).
The information provided by the General (Financial)
accountant is focused on compliance based reporting
(past).
There was an expected increase in demand for MAs due to
the increased importance of Business Analysis in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Risk Management in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Corporate Governance in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Corporate Social
Responsibility (CSR) in my industry
There was an expected increase in demand for MAs due to
the impact of the carbon price legislation to my industry
There was an expected increase in demand for MAs due to
the increased importance of Cost Management in my
industry
There was an expected increase in demand for MAs due to
the increased importance of IFRS and Fair-Value Asset
Valuations in my industry
Our company expects to meet any increased demand for
MAs by hiring individuals with the required skill sets
Our company expects to meet any increased demand for
MAs by outsourcing to professional MA consulting firms
Our company expects there to be significant competition
for MAs in Australia
There is an inadequate number of accountants trained with
the specialist skill sets of management accounting in
Australia
There is an inadequate number of accountants with senior
experience in management accounting in Australia
Our company expects that the demand would likely need
to be met in part by MAs from overseas
Business Analysis
There is an increased demand for MAs especially in light of
the increased importance of using sophisticated business
analysis tools for strategic planning in my company
There is an increased demand for MAs especially in light of
the increased importance of budgeting and management
control in my company
There is an increased demand for MAs especially in light of
the increased importance of KPIs in performance
management in my company
Risk Management
There is an increased demand for MAs especially in light of
the increased importance of risk management due to the
continuing GFC
Total Numbers
% Total
Agree Neutral Disagree Agree Neutral Disagree
20 0 2 90.9% 0.0% 9.1%
16 2 4 72.7% 9.1% 18.2%
18 3 1 81.8% 13.6% 4.5%
18 2 2 81.8% 9.1% 9.1%
16 3 3 72.7% 13.6% 13.6%
10 6 6 45.5% 27.3% 27.3%
19 3 0 86.4% 13.6% 0.0%
20 0 2 90.9% 0.0% 9.1%
22 0 0 100.0% 0.0% 0.0%
10 5 7 45.5% 22.7% 31.8%
20 2 0 90.9% 9.1% 0.0%
2 0 20 9.1% 0.0% 90.9%
19 1 2 86.4% 4.5% 9.1%
15 2 5 68.2% 9.1% 22.7%
18 3 1 81.8% 13.6% 4.5%
12 7 3 54.5% 31.8% 13.6%
18 4 0 81.8% 18.2% 0.0%
15 2 5 68.2% 9.1% 22.7%
20 2 0 90.9% 9.1% 0.0%
19 2 1 86.4% 9.1% 4.5%

26
There is an increased demand for MAs especially in light of
the increased importance of managing strategic risk in my
company
There is an increased demand for MAs especially in light of
the increased importance of managing financial risk in my
company
Corporate Governance
There is an increased demand for MAs especially in light of
the increased importance of compliance in my company's
governance
There is an increased demand for MAs especially in light of
the increased importance of performance in my
company's governance
There is an increased demand for MAs especially in light of
the increased importance of the Strategic Audit in my
company's governance
Corporate Social Responsibility
There is an increased demand for MAs especially in light of
the increased importance of Environmental Accounting
in my company
There is an increased demand for MAs especially in light of
the increased importance of Stakeholder Audits in my
company
There is an increased demand for MAs especially in light of
the increased importance of ethical behaviour in my
company
Carbon Accounting
My company will require the skills of an MA to undertake
carbon sequestration investments
My company will require the skills of an MA to reduce its
significant carbon liabilities
The skill sets required for carbon accounting and
assurance are not available in Australia and consequently
may have to be imported
Cost Management
There is an increased demand for MAs especially in light of
the increased importance of advanced cost management
tools such as Life Cycle and Activity Based Costing in
my company
There is an increased demand for MAs especially in light of
the increased importance of cost reduction and value
engineering initiatives in my company
There is an increased demand for MAs especially in light of
the increased importance of Benchmarking and Lean
Management applications in my company
Asset Valuation
There is an increased demand for MAs especially in light of
the increased importance of using DCF techniques for fair
asset valuations in my company
There is an increased demand for MAs especially in light of
the increased importance of using option pricing
techniques for fair asset valuations in my company
There is an increased demand for MAs especially in light of
the increased importance of expert valuations in fair
asset valuations in my company
19 2 1 86.4% 9.1% 4.5%
12 5 5 54.5% 22.7% 22.7%
10 2 10 45.5% 9.1% 45.5%
19 3 0 86.4% 13.6% 0.0%
10 12 0 45.5% 54.5% 0.0%
21 1 0 95.5% 4.5% 0.0%
17 3 2 77.3% 13.6% 9.1%
10 3 9 45.5% 13.6% 40.9%
21 1 0 95.5% 4.5% 0.0%
15 3 4 68.2% 13.6% 18.2%
21 1 0 95.5% 4.5% 0.0%
10 3 9 45.5% 13.6% 40.9%
19 3 0 86.4% 13.6% 0.0%
14 4 4 63.6% 18.2% 18.2%
9 9 4 40.9% 40.9% 18.2%
5 15 2 22.7% 68.2% 9.1%
16 3 3 72.7% 13.6% 13.6%

27
Appendix 3: An in-Depth Analysis of the Demand for Management Accountants in
Australia (CFO Responses)
n= 59
Demand for Management Accountants (MAs)
The skill set of a MA is very different to that of a General
(Financial) accountant
The information provided by the MA is focused on
decision making (future).
The information provided by the General (Financial)
accountant is focused on compliance based reporting
(past).
There was an expected increase in demand for MAs due to
the increased importance of Business Analysis in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Risk Management in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Corporate Governance in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Corporate Social
Responsibility (CSR) in my industry
There was an expected increase in demand for MAs due to
the impact of the carbon price legislation to my industry
There was an expected increase in demand for MAs due to
the increased importance of Cost Management in my
industry
There was an expected increase in demand for MAs due to
the increased importance of IFRS and Fair-Value Asset
Valuations in my industry
Our company expects to meet any increased demand for
MAs by hiring individuals with the required skill sets
Our company expects to meet any increased demand for
MAs by outsourcing to professional MA consulting firms
Our company expects there to be significant competition
for MAs in Australia
There is an inadequate number of accountants trained with
the specialist skill sets of management accounting in
Australia
There is an inadequate number of accountants with senior
experience in management accounting in Australia
Our company expects that the demand would likely need
to be met in part by MAs from overseas
Business Analysis
There is an increased demand for MAs especially in light of
the increased importance of using sophisticated business
analysis tools for strategic planning in my company
There is an increased demand for MAs especially in light of
the increased importance of budgeting and management
control in my company
There is an increased demand for MAs especially in light of
the increased importance of KPIs in performance
management in my company
Risk Management
There is an increased demand for MAs especially in light of
the increased importance of risk management due to the
continuing GFC
Total Numbers
% Total
Agree Neutral Disagree Agree Neutral Disagree
59 0 0 100.0% 0.0% 0.0%
50 3 6 84.7% 5.1% 10.2%
45 4 10 76.3% 6.8% 16.9%
43 5 11 72.9% 8.5% 18.6%
46 5 8 78.0% 8.5% 13.6%
39 13 7 66.1% 22.0% 11.9%
46 11 2 78.0% 18.6% 3.4%
49 9 1 83.1% 15.3% 1.7%
57 2 0 96.6% 3.4% 0.0%
32 12 15 54.2% 20.3% 25.4%
45 10 4 76.3% 16.9% 6.8%
3 11 45 5.1% 18.6% 76.3%
43 8 8 72.9% 13.6% 13.6%
39 10 10 66.1% 16.9% 16.9%
50 8 1 84.7% 13.6% 1.7%
49 1 9 83.1% 1.7% 15.3%
50 8 1 84.7% 13.6% 1.7%
44 8 7 74.6% 13.6% 11.9%
55 3 1 93.2% 5.1% 1.7%
50 6 3 84.7% 10.2% 5.1%

28
There is an increased demand for MAs especially in light of
the increased importance of managing strategic risk in my
company
There is an increased demand for MAs especially in light of
the increased importance of managing financial risk in my
company
Corporate Governance
There is an increased demand for MAs espeially in light of
the increased importance of compliance in my company's
governance
There is an increased demand for MAs especially in light of
the increased importance of performance in my
company's governance
There is an increased demand for MAs especially in light of
the increased importance of the Strategic Audit in my
company's governance
Corporate Social Responsibility
There is an increased demand for MAs especially in light of
the increased importance of Environmental Accounting
in my company
There is an increased demand for MAs especially in light of
the increased importance of Stakeholder Audits in my
company
There is an increased demand for MAs especially in light of
the increased importance of ethical behaviour in my
company
Carbon Accounting
My company will require the skills of an MA to undertake
carbon sequestration investments
My company will require the skills of an MA to reduce its
significant carbon liabilities
The skill sets required for carbon accounting and
assurance are not available in Australia and consequently
may have to be imported
Cost Management
There is an increased demand for MAs especially in light of
the increased importance of advanced cost management
tools such as Life Cycle and Activity Based Costing in
my company
There is an increased demand for MAs especially in light of
the increased importance of cost reduction and value
engineering initiatives in my company
There is an increased demand for MAs especially in light of
the increased importance of Benchmarking and Lean
Management applications in my company
Asset Valuation
There is an increased demand for MAs especially in light of
the increased importance of using DCF techniques for fair
asset valuations in my company
There is an increased demand for MAs especially in light of
the increased importance of using option pricing
techniques for fair asset valuations in my company
There is an increased demand for MAs especially in light of
the increased importance of expert valuations in fair
asset valuations in my company
48 9 2 81.4% 15.3% 3.4%
36 15 8 61.0% 25.4% 13.6%
10 10 39 16.9% 16.9% 66.1%
52 6 1 88.1% 10.2% 1.7%
32 20 7 54.2% 33.9% 11.9%
55 4 0 93.2% 6.8% 0.0%
49 9 1 83.1% 15.3% 1.7%
47 9 3 79.7% 15.3% 5.1%
57 0 2 96.6% 0.0% 3.4%
55 2 2 93.2% 3.4% 3.4%
55 2 2 93.2% 3.4% 3.4%
25 12 22 42.4% 20.3% 37.3%
35 14 10 59.3% 23.7% 16.9%
22 12 25 37.3% 20.3% 42.4%
15 29 15 25.4% 49.2% 25.4%
10 40 9 16.9% 67.8% 15.3%
38 19 2 64.4% 32.2% 3.4%

29
Appendix 4: An in-Depth Analysis of the Demand for Management Accountants in
Australia (HRM Responses)
n= 51
Demand for Management Accountants (MAs)
The skill set of a MA is very different to that of a General
(Financial) accountant
The information provided by the MA is focused on
decision making (future).
The information provided by the General (Financial)
accountant is focused on compliance based reporting
(past).
There was an expected increase in demand for MAs due to
the increased importance of Business Analysis in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Risk Management in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Corporate Governance in my
industry
There was an expected increase in demand for MAs due to
the increased importance of Corporate Social
Responsibility (CSR) in my industry
There was an expected increase in demand for MAs due to
the impact of the carbon price legislation to my industry
There was an expected increase in demand for MAs due to
the increased importance of Cost Management in my
industry
There was an expected increase in demand for MAs due to
the increased importance of IFRS and Fair-Value Asset
Valuations in my industry
Our company expects to meet any increased demand for
MAs by hiring individuals with the required skill sets
Our company expects to meet any increased demand for
MAs by outsourcing to professional MA consulting firms
Our company expects there to be significant competition
for MAs in Australia
There is an inadequate number of accountants trained with
the specialist skill sets of management accounting in
Australia
There is an inadequate number of accountants with senior
experience in management accounting in Australia
Our company expects that the demand would likely need
to be met in part by MAs from overseas
Business Analysis
There is an increased demand for MAs especially in light of
the increased importance of using sophisticated business
analysis tools for strategic planning in my company
There is an increased demand for MAs especially in light of
the increased importance of budgeting and management
control in my company
There is an increased demand for MAs especially in light of
the increased importance of KPIs in performance
management in my company
Risk Management
There is an increased demand for MAs especially in light of
the increased importance of risk management due to the
continuing GFC
Total Numbers
% Total
Agree Neutral Disagree Agree Neutral Disagree
45 2 4 88.2% 3.9% 7.8%
40 6 5 78.4% 11.8% 9.8%
38 5 8 74.5% 9.8% 15.7%
39 4 8 76.5% 7.8% 15.7%
40 5 6 78.4% 9.8% 11.8%
30 10 11 58.8% 19.6% 21.6%
44 5 2 86.3% 9.8% 3.9%
38 6 7 74.5% 11.8% 13.7%
51 0 0 100.0% 0.0% 0.0%
25 20 6 49.0% 39.2% 11.8%
48 3 0 94.1% 5.9% 0.0%
0 5 46 0.0% 9.8% 90.2%
46 3 2 90.2% 5.9% 3.9%
46 2 3 90.2% 3.9% 5.9%
47 1 3 92.2% 2.0% 5.9%
35 5 11 68.6% 9.8% 21.6%
43 3 5 84.3% 5.9% 9.8%
39 4 8 76.5% 7.8% 15.7%
48 3 0 94.1% 5.9% 0.0%
49 2 0 96.1% 3.9% 0.0%

30
There is an increased demand for MAs especially in light of
the increased importance of managing strategic risk in my
company
There is an increased demand for MAs especially in light of
the increased importance of managing financial risk in my
company
Corporate Governance
There is an increased demand for MAs especially in light of
the increased importance of compliance in my company's
governance
There is an increased demand for MAs especially in light of
the increased importance of performance in my
company's governance
There is an increased demand for MAs especially in light of
the increased importance of the Strategic Audit in my
company's governance
Corporate Social Responsibility
There is an increased demand for MAs especially in light of
the increased importance of Environmental Accounting
in my company
There is an increased demand for MAs especially in light of
the increased importance of Stakeholder Audits in my
company
There is an increased demand for MAs especially in light of
the increased importance of ethical behaviour in my
company
Carbon Accounting
My company will require the skills of an MA to undertake
carbon sequestration investments
My company will require the skills of an MA to reduce its
significant carbon liabilities
The skill sets required for carbon accounting and
assurance are not available in Australia and consequently
may have to be imported
Cost Management
There is an increased demand for MAs especially in light of
the increased importance of advanced cost management
tools such as Life Cycle and Activity Based Costing in
my company
There is an increased demand for MAs especially in light of
the increased importance of cost reduction and value
engineering initiatives in my company
There is an increased demand for MAs especially in light of
the increased importance of Benchmarking and Lean
Management applications in my company
Asset Valuation
There is an increased demand for MAs especially in light of
the increased importance of using DCF techniques for fair
asset valuations in my company
There is an increased demand for MAs especially in light of
the increased importance of using option pricing
techniques for fair asset valuations in my company
There is an increased demand for MAs especially in light of
the increased importance of expert valuations in fair
asset valuations in my company
39 8 4 76.5% 15.7% 7.8%
35 10 6 68.6% 19.6% 11.8%
9 9 33 17.6% 17.6% 64.7%
38 9 4 74.5% 17.6% 7.8%
20 17 14 39.2% 33.3% 27.5%
45 6 0 88.2% 11.8% 0.0%
43 6 2 84.3% 11.8% 3.9%
25 4 22 49.0% 7.8% 43.1%
46 4 1 90.2% 7.8% 2.0%
43 7 1 84.3% 13.7% 2.0%
44 6 1 86.3% 11.8% 2.0%
26 4 21 51.0% 7.8% 41.2%
30 10 11 58.8% 19.6% 21.6%
23 13 15 45.1% 25.5% 29.4%
10 32 9 19.6% 62.7% 17.6%
13 29 9 25.5% 56.9% 17.6%
30 15 6 58.8% 29.4% 11.8%

31
Appendix 5: An in-Depth Analysis of the Demand for Management Accountants in
Australia (MA Responses)
n= 36
Demand for Management Accountants (MAs)
The skill set of a MA is very different to that of a General
(Financial) accountant
The information provided by the MA is focused on decision
making (future).
The information provided by the General (Financial) accountant
is focused on compliance based reporting (past).
There was an expected increase in demand for MAs due to the
increased importance of Business Analysis in my industry
There was an expected increase in demand for MAs due to the
increased importance of Risk Management in my industry
There was an expected increase in demand for MAs due to the
increased importance of Corporate Governance in my
industry
There was an expected increase in demand for MAs due to the
increased importance of Corporate Social Responsibility
(CSR) in my industry
There was an expected increase in demand for MAs due to the
impact of the carbon price legislation to my industry
There was an expected increase in demand for MAs due to the
increased importance of Cost Management in my industry
There was an expected increase in demand for MAs due to the
increased importance of IFRS and Fair-Value Asset
Valuations in my industry
Our company expects to meet any increased demand for MAs
by hiring individuals with the required skill sets
Our company expects to meet any increased demand for MAs
by outsourcing to professional MA consulting firms
Our company expects there to be significant competition for
MAs in Australia
There is an inadequate number of accountants trained with the
specialist skill sets of management accounting in Australia
There is an inadequate number of accountants with senior
experience in management accounting in Australia
Our company expects that the demand would likely need to be
met in part by MAs from overseas
Business Analysis
There is an increased demand for MAs especially in light of the
increased importance of using sophisticated business analysis
tools for strategic planning in my company
There is an increased demand for MAs especially in light of the
increased importance of budgeting and management control
in my company
There is an increased demand for MAs especially in light of the
increased importance of KPIs in performance management in
my company
Risk Management
There is an increased demand for MAs especially in light of the
increased importance of risk management due to the
continuing GFC
Total Numbers
% Total
Agree Neutral Disagree Agree Neutral Disagree
28 2 6 77.8% 5.6% 16.7%
30 4 2 83.3% 11.1% 5.6%
32 2 2 88.9% 5.6% 5.6%
29 3 4 80.6% 8.3% 11.1%
31 3 2 86.1% 8.3% 5.6%
29 2 5 80.6% 5.6% 13.9%
30 5 1 83.3% 13.9% 2.8%
28 7 1 77.8% 19.4% 2.8%
35 1 0 97.2% 2.8% 0.0%
18 14 4 50.0% 38.9% 11.1%
28 6 2 77.8% 16.7% 5.6%
2 8 26 5.6% 22.2% 72.2%
30 1 5 83.3% 2.8% 13.9%
25 4 7 69.4% 11.1% 19.4%
29 4 3 80.6% 11.1% 8.3%
25 8 3 69.4% 22.2% 8.3%
27 4 5 75.0% 11.1% 13.9%
29 6 1 80.6% 16.7% 2.8%
28 5 3 77.8% 13.9% 8.3%
31 4 1 86.1% 11.1% 2.8%

32
There is an increased demand for MAs especially in light of the
increased importance of managing strategic risk in my
company
There is an increased demand for MAs especially in light of the
increased importance of managing financial risk in my
company
Corporate Governance
There is an increased demand for MAs especially in light of the
increased importance of compliance in my company's
governance
There is an increased demand for MAs especially in light of the
increased importance of performance in my company's
governance
There is an increased demand for MAs especially in light of the
increased importance of the Strategic Audit in my company's
governance
Corporate Social Responsibility
There is an increased demand for MAs especially in light of the
increased importance of Environmental Accounting in my
company
There is an increased demand for MAs especially in light of the
increased importance of Stakeholder Audits in my company
There is an increased demand for MAs especially in light of the
increased importance of ethical behaviour in my company
Carbon Accounting
My company will require the skills of an MA to undertake
carbon sequestration investments
My company will require the skills of an MA to reduce its
significant carbon liabilities
The skill sets required for carbon accounting and assurance
are not available in Australia and consequently may have to be
imported
Cost Management
There is an increased demand for MAs especially in light of the
increased importance of advanced cost management tools
such as Life Cycle and Activity Based Costing in my
company
There is an increased demand for MAs especially in light of the
increased importance of cost reduction and value
engineering initiatives in my company
There is an increased demand for MAs especially in light of the
increased importance of Benchmarking and Lean
Management applications in my company
Asset Valuation
There is an increased demand for MAs especially in light of the
increased importance of using DCF techniques for fair asset
valuations in my company
There is an increased demand for MAs especially in light of the
increased importance of using option pricing techniques for
fair asset valuations in my company
There is an increased demand for MAs especially in light of the
increased importance of expert valuations in fair asset
valuations in my company
29 6 1 80.6% 16.7% 2.8%
27 7 2 75.0% 19.4% 5.6%
12 4 20 33.3% 11.1% 55.6%
30 5 1 83.3% 13.9% 2.8%
27 9 0 75.0% 25.0% 0.0%
32 4 0 88.9% 11.1% 0.0%
29 4 3 80.6% 11.1% 8.3%
26 6 4 72.2% 16.7% 11.1%
32 0 4 88.9% 0.0% 11.1%
29 3 4 80.6% 8.3% 11.1%
30 3 3 83.3% 8.3% 8.3%
20 10 6 55.6% 27.8% 16.7%
20 10 6 55.6% 27.8% 16.7%
20 10 6 55.6% 27.8% 16.7%
16 10 10 44.4% 27.8% 27.8%
15 16 5 41.7% 44.4% 13.9%
22 10 4 61.1% 27.8% 11.1%