Cut Afrianandra SE, Ak.

,
M.Bus(Acc)

Introduction to Behavioral Accounting

THE TRADITIONAL ROLE OF ACCOUNTING

Relevant
Business/
Non Profit entities
Timely

Internal & Eksternal

Users
Economic Decision Making

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Accounting

Financial
Information

 Internal users are the organisations own

line and staff personnel, who view
accounting reports as the foundation on
which financing, investing and operating
decision are made
External Users include such groups as
stockholders, creditors, labor unions,
financial analysts, and government agencies

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Internal and external user

The Relationship between Behavioral Accounting and Other Sciences

Financial Statement

External

Internal

Financial
Accounting (GAAP)

Management
Accounting

Behavior
Accounting

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Accounting
Information System

Human Behavior

The Accounting Information System

Accounting :
Business
Language

Organizatio
ns

Social
Programs

Decision Makers

Governme
nt
Activities

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

People

Measures and communicates

financial and other
information

Busines
s
Venture
s

THE BEHAVIOR DIMENSION OF ACCOUNTING

Only focused on
reporting of financial
information

Understanding and measuring of

usiness process impact to people
nd organizations Performance

Measuring and reporting behavior

nd relevant opini to strategic
lanning

Effecting the opini and behavior

o guarantee the succed of
rganizational policies implication

Human Behavior
Dimensions

a vital supplement to
Financial Information
that Currently report

Social Dimensions

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Behavioral Accounting

Traditional Accounting Behavioral Accounting

 the effect of human behavior on the design,

construction, and the use of the accounting
system
the effect of the accounting system on human
behavior
Methods to predict and Strategies to change
human behavior

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Accounting Behavioral
Scopes

Behavioral Accounting: A Logial Extention of Accountings

Traditional Role

Decision Making
Full Disclosure
(Additional
Information)

Behavioral
Information

To supplement the financial and

other data presently reported

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Financial
Reporting

Relationship of Accountant Duties and Behavioral

Accountant

Behavioral
Phenomena

Investigation

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Financial Reporting

Scope and Objective Of Behavioral Science

To be scientific
if and only if
Two criterias

The research object is

Human behavior

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Scope Including
of
all field of researches both experimental and observation
Behavioral
about human behavior
Accounting

Should be scientific Research

Described systimatically by explain,
And predict the phenomenon of
behavior

Goal

To Understands, Explains and predicts and

Finally conclude about human behavior supported by
Empirical evidences which collected impersonally
By divulge procedure, and further it can be replicate and
verified by scientist who concern to do related research

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Behavioral Science

Scientific research that deals directly with human behaviors

definition
(Bernard Berelson dan G. A Stainer)

Scope and Objective of Behavioral Accounting

Accountant
Future Performance

Past
Behavior

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Past Performance

Behavior Accountant

influence

Motivation
Morale
productivity

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Design

Information System

Successful in meeting
its Budget

Unsuccessful in
meeting its Budget

Good Organisational teamwork

As a result content of the
budget reports may have
spurred employee productivity
and caused people to work
together

Working toward conflicting

goals
As a result they may have
created internal conflict and
stifled individual initiative

Interrelationship between accounting

measurements and behavior

Modification of
conventional definition of
accounting

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Example

Various decision
making

Measurement
and communication
Of economic data

for
Other behavioral
objectives

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

In academic and
Professional circles

The most
Recent Accounting
definition

BEHAVIORAL SCIENCE AND BEHAVIORAL

ACCOUNTING:

SIMILARITIES AND DIFFERENCES

Concern with explanation and

prediction of human behavior
Subset of social science
Behavioral scientist may
engage in research on any
aspect of motivation theory,
social stratification, or
attitude formation

Behavioral Accounting
Concern with the relationship
between human behavior and
accounting
Subset both accounting and
behavioral science
Behavioral accountant would apply
only the specific elements of these
theories or research results that are
relevant to accounting situation at
hand

Similarities
Both are based on Psychology, Sociology
and social psychology to solve
organisations matters

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Behavioral Science

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

Some Differences Between Behavioral Accountants and Applied

Behavioral Scientist

Behavioral
Applied Behavioral
Differences
Accountant
Scientists

Primarily
Primarily social
Accounting: basic
science : no
Area of expertise
knowledge of social
knowledge of
science
accounting
Ability to design and
Not a major element
key element in
execute behavior
in training
training
research project
Knowledge and
understanding of the
workings of business
key element in
Not a major element
organisations in
training
in training
general and
accounting systems in
particular
Orientation
Professional
Scientific
Theoretical and
Approach to problems
Practical
practical
Serve clients: advise advance science and
Function
management
solve problems
Limited to
limited to broad
Interest in behavioral
accounting-related
subdisciplines in
Science
areas
behavioral science

Behavioral
Science

Contribution

Analysis Unit

Output

Learning

motivation

emotional

perception

training
Individual
Psychology

Efectivity Leader

work satisfaction

decision making

performance evaluation

attitude value

workers selection

job design

work pressure

Cut Afrianandra SE, Ak.,

M.Bus(Acc)

individualism