Financial and Business Accounting

In: Business and Management

Submitted By vijrke
Words 8115
Pages 33
Page 1 of 18

17th European Conference on Information Systems

TEACHING CASE
LEADING THE CHANGE - ERP IMPLEMENTATION AT KEDA

Abstract
While Enterprise Resource Planning (ERP) system demand in China has been steadily increasing, many of such implementation projects failed. Keda Industrial Co. Ltd (600986: Shanghai Stock
Exchange), a manufacturer of large scale machinery in China, however, was one of the few that successfully deployed its ERP solution in 2005. In this case study, we document the ERP initiative of
Keda from its conception to its deployment, study the factors that contributed to its success, and summarize Keda’s practices that substantiated the identified success factors.
Keywords: Enterprise Resource Planning, Implementation, Critical Success Factors, Teaching Case

17th European Conference on Information Systems

1

Page 2 of 18

INTRODUCTION

According to a market study conducted by Gartner Research, ERP software demand in China increased by 29% in 2006 (Pang et al, 2006). In fact, many enterprises in China have recognized the strategic importance of ERP in their rapid developments. Keda Industrial Co. Ltd. (600986: Shanghai
Stock Exchange), a manufacturer of large-scale machinery in China, was such a company. Keda produces and sells machinery for processing ceramics that are mainly used in construction. In August
2005, Keda successfully deployed SAP as their ERP solution, a mere five months after forming an implementation team. The project quickly paid off through lowered inventory and reduced operation and management costs. This success was all the more remarkable given the fact that an estimated over
80% of ERP implementation efforts in China failed (Zhang et al, 2003). Dr. Fan Zhu, the Vice General
Manager of Keda, while utterly satisfied with the project outcome, could not help but wonder if the project success…...

Similar Documents

Financial Accounting

...CHAPTER 1 Financial Accounting and Accounting Standards 1-1 ASSIGNMENT CHARACTERISTICS TABLE Level of Difficulty Simple Simple Simple Simple Moderate Simple Simple Simple Simple Complex Simple Moderate Simple Simple Complex Moderate Moderate Moderate Moderate Moderate Time (minutes) 15–20 15–20 15–20 15–20 20–25 10–15 15–20 20–25 20–25 30–40 15–20 30–40 15–20 10–15 20–25 30–40 25–35 25–35 25–35 25–35 Item CA1-1 CA1-2 CA1-3 CA1-4 CA1-5 CA1-6 CA1-7 CA1-8 CA1-9 CA1-10 CA1-11 CA1-12 CA1-13 CA1-14 CA1-15 CA1-16 CA1-17 CA1-18 CA1-19 CA1-20 Description FASB and standard-setting. GAAP and standard-setting. Financial reporting and accounting standards. Financial accounting. Objective of financial reporting. Accounting numbers and the environment. Need for GAAP. AICPA’s role in rule-making. FASB role in rule-making. Politicalization of GAAP. Models for setting GAAP. GAAP terminology. Accounting organizations and documents issued. Accounting pronouncements. Rule-making Issues. Securities and Exchange Commission. Rule-making process. Financial reporting pressures. Economic consequences. GAAP and economic consequences. 1-2 Copyright © 2011 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 14/e, Solutions Manual (For Instructor Use Only) SOLUTIONS TO CODIFICATION EXERCISES CE1-1 There is no answer to this requirement as it asks the student to register to use the Codification. CE1-2 (a) The Codification Overview module illustrates three items (1)......

Words: 12637 - Pages: 51

Financial Accounting

... 1. Introduction: Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners and other stakeholders. Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power. The central need for financial accounting is to reduce the various principal-agent problems, by measuring and monitoring the agents' performance and thereafter reporting the results to interested users. Financial accountancy is used to prepare accountancy data for people outside the organization or for those, who are not involved in the mundane administration of the company. Management accounting, provides accounting information to help managers make decisions to manage and enhance the business. In short, financial accounting is the process of sum-arising financial data, which is taken from an organization's accounting records and publishing it in the form of annual or quarterly reports, for the benefit of people outside the organization. Financial accountancy is governed not only by local standards but also by international accounting standard. 2. Role of Financial Accounting: • Financial accounting generates some key documents, which includes profit and loss account, patterning the method of business traded for a specific period and the balance sheet that provides a statement, showing......

Words: 7845 - Pages: 32

Financial Accounting

...Question D | 5 | Bibliography | 6 | Financial Accounting 1 Group Assignment Question A As what we understand for the words of Professional Accountant is who has experience and skills in establishing and maintaining accurate financial records for a business. Accountants’ works including control the system of record, auditing books and prepare a financial statement (Hossain, 2013). The accounting profession in Malaysia is controlled by the Malaysian Institute of Accountants (MIA) through the powers discussed by the Accountants Act, 1967. In Malaysia, we needed some certificates to show that we are accounting educated so that we are having the abilities to work as certain company’s accountant. Those certificates are known as ACCA, LCCA, CIMA and also MICPA. Start from few years back, Malaysia standard of requiring accountants was raised from LCCA to ACCA. With ACCA certificate, a person can consider as a professional accountant and so he or her has the ability to finish the duties. Question B In an organization, accountant plays a very important role. Without an accountant, the organization cannot work effectively (role of accountant, 2013). Accounting is a special division of knowledge. Both the accounting system and the accountant provide a very useful service to the society. There are a lot of stuff can be done by an accountant. Firstly, an accountant does bookkeeping. They keep a systematic record of the transaction in the business to ensure the organization......

Words: 1827 - Pages: 8

Accounting and Financial Reporting for Business

... Auditing and accounting principles in the United States of America are considered strong and sophisticated. Transparency and disclosure are really emphasized in American companies, and because of this the downfall of Andersen and Enron still raises questions. This has since become a case of reference in review of issues concerning financial reporting and auditing. It has also been used to explain about regulations on auditing and accounting inside and outside America. This case has brought about huge implications on corporate governance to other countries. Enron Corporation declared its bankruptcy in the year 2001. Afterwards, Anderson’s downfall occurred in 2002. It has been a big question, outside America, on what brought about this failure. The General Accepted Accounts Principles, in the US, are very well developed. These principles require clear disclosures of financial statements that are audited. They also require an established federal agency and a commission to monitor financial reporting. Cases have been written, from the failures of Enron and Andersen, for the exploration of accounting, auditing and financial reporting issues in the US. The head of auditing of Enron Corporation was fired during the company’s downfall for destroying important documents, upon realizing that the company’s accounting methods were being investigated by the commission of Securities and Exchange. The destruction of the accounting documents compromised with accounting standard......

Words: 1202 - Pages: 5

Financial Accounting

... | |Business |10. Financial Accounting and Reporting | |Student name |Assessor name | | |Mehreen Bakht Haroon | |Date issued |Completion date |Submitted on | |15th July 2014 |15th August 2014 | | |Assignment Title |Financial statements interpretation and reporting | |Learning |Learning |Assessment |In this assessment you will have the opportunity to |Task |Evidence | |Outcome |Outcome |Criteria |present evidence that shows you are able to: |No. |(Page no.) | | | |1.2 |explain the legal and regulatory influences on |7 | | | | | |financial | ...

Words: 2594 - Pages: 11

Financial and Business Accounting

...essay Financial And Business Accounting Financial And Business Accounting Print version essay is available for you! You can search Free Term Papers and College Essay Examples written by students!. Join Essays24.comand get instant access to Financial And Business Accounting and over 30,000 other Papers and Essays Category: Business Autor: anton 01 December 2010 Words: 1039 | Pages: 5 Financial accounting is defined as measuring and recording business transactions and providing financial statements that are based on generally accepted accounting principles. It focuses on external reporting. The purpose of financial accounting it to aid accounts in their function of overseeing an organizations financial assets. The central outputs of financial accounting are audited financial statements such as balance sheets and income statements. Financial accounting is geared toward providing information to parties outside the firm, for example prospective shareholders. By contrast, managerial account which measures and reports financial and non-financial information tat helps managers make decisions to abide by the goals of an organization. It focuses on internal reporting. The tools used by managerial accountants to meet their goal of decision support are such things as budgets, activity-based costing and financial planning. Managerial account is designed for internal use by firm’s managers. Cost accounting is a subset of the more inclusive area of managerial accounting.......

Words: 1157 - Pages: 5

Financial Accounting

...Chapter 1 Financial Statements and Business Decisions ANSWERS TO QUESTIONS 1. Accounting is a system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers. 2. Financial accounting involves preparation of the four basic financial statements and related disclosures for external decision makers. Managerial accounting involves the preparation of detailed plans, budgets, forecasts, and performance reports for internal decision makers. 3. Financial reports are used by both internal and external groups and individuals. The internal groups are comprised of the various managers of the entity. The external groups include the owners, investors, creditors, governmental agencies, other interested parties, and the public at large. 4. Investors purchase all or part of a business and hope to gain by receiving part of what the company earns and/or selling the company in the future at a higher price than they paid. Creditors lend money to a company for a specific length of time and hope to gain by charging interest on the loan. 5. In a society each organization can be defined as a separate accounting entity. An accounting entity is the organization for which financial data are to be collected. Typical accounting entities are a business, a church, a governmental unit, a university and other nonprofit organizations such as a hospital and a welfare organization.......

Words: 6008 - Pages: 25

Financial Accounting

... Financial Accounting ATLANTIC INTERNATIONAL UNIVERSITY TABLE OF CONTENTS Introduction ………………………………………………………….3 History ……………………………………………………………….3 Description………………………………………………………….....4 Financial Reporting …………………………………………………..5 Accounting Principles…………………………………………………6 Balance Sheet…………………………………………………………7 Income Statements……………………………………………………8 Other Financial Statements…………………………………………..9 Bookkeeping Cycle…………………………………………………….9 Regulations and Standards…………………………………………..11 Accounting Reforms…………………………………………………..12 Biological Assets Research…………………………………………...13 Literatures Review……………………………………………………..14 Methodology and Model…………………………………………….... 16 Findings………………………………………………………………….18 Conclusion……………………………………………………………….19 References………………………………………………………………20 Financial Accounting INTRODUCTION Financial accounting refers to information describing the financial resources. Obligation and activities of an economic entity (either an organization or an individual). Accountants use the term financial position to describe an entity’s financial resources and obligations at appoint in time and the term results of operations to describe its financial activities during the year. Financial Accounting encompasses the record-keeping aspect of accounting and therefore provides much of......

Words: 7526 - Pages: 31

Financial Accounting

...ACCOUNTING CONCEPTS AND CONVENTIONS INTRODUCTION In all activities (whether business activities or non-business activities) and in all organizations (whether business organizations like a manufacturing entity or trading entity or non-business organizations like schools, colleges, hospitals, libraries,clubs,temples, political parties) which require money and other economic resources, accounting is required to account for these resources. In other words, wherever money is involved, accounting is required to account for it. Accounting is often called the language of business. The basic function of any language is to serve as a means of communication. Accounting serves this function and much more. Accounting is an art of recording, classifying, analyzing and summarizing in a significant manner and in terms of money, transactions and events which are in part, at least, of a financial character, and interpreting and communicating the results thereof. There are certain guidelines and practices that are followed while recording transactions and in preparing financial statements. Such guidelines and practices have been developed on the basis of globally accepted accounting standards. Such principles are called Generally Accepted Accounting Principles (GAAP). GAAP’s foundation is built on the basic principles of accounting concepts, conventions and accounting standards. Accounting principles refers to certain rules, procedures and conventions which represent a consensus view by...

Words: 426 - Pages: 2

Financial Accounting

...The two types of accounting are Financial and Managerial. Financial accounting provides information for external users to help in the decision making process. These external users would include analysts, creditors, investors, and regulators. As for the creditors and investors, they utilize this information to base their decision of lending money or not. As for managerial accounting this information is provide to senior management to help them make a better assessment when making decisions regarding the company’s business activities and future plans.      When referring to managerial accounting, there are different types of accounting information. For example, a budget report will used to compare actual performance against budgeted performance. According to Answers.com (2011), in a budget report there are columns for actual performance and for budgeted performance and the difference between the two is a variance. Senior management will review a break even analysis on a new product. The break even analysis informs management the required unit sales or dollar sales that the company needs to not suffer a loss on a product. According to Holland (1998), the break even analysis is one of the most common tools used by management to evaluate the feasibility of a new product or enterprise. The next piece of accounting information is the manufacturer’s balance sheet. The balance sheet informs management of the business’s assets, liabilities and owner’s equity. Stated by Huey (n.d.),......

Words: 549 - Pages: 3

Financial Accounting

...Financial Accounting Standards Board ORIGINAL PRONOUNCEMENTS AS AMENDED Statement of Financial Accounting Standards No. 157 Fair Value Measurements Copyright © 2010 by Financial Accounting Foundation. All rights reserved. Content copyrighted by Financial Accounting Foundation may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Financial Accounting Foundation. FAS157 Statement of Financial Accounting Standards No. 157 Fair Value Measurements STATUS Issued: September 2006 Effective Date: For financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years Affects: Amends APB 21, paragraphs 13 and 18 Deletes APB 21, footnote 1 Amends APB 28, paragraph 30 Amends APB 29, paragraphs 18 and 20(a) Deletes APB 29, paragraph 25 and footnote 5 Amends FAS 13, paragraph 5(c) Amends FAS 15, paragraphs 13 and 28 Deletes FAS 15, footnotes 2, 5a, and 6 Amends FAS 19, paragraph 47(l)(i) Amends FAS 35, paragraph 11 and footnote 5 Deletes FAS 35, footnote 4a Amends FAS 60, paragraph 19 Deletes FAS 60, footnote 4a Amends FAS 63, paragraphs 4, 8, and 38 through 40 Amends FAS 65, paragraphs 4, 6, 9, 10, 12, and 29 Amends FAS 67, paragraphs 8 and 28 Deletes FAS 67, footnote 6 Amends FAS 87, paragraphs 49 and 264 and footnote 12 Deletes FAS 87,......

Words: 59304 - Pages: 238

Financial Accounting

...[Title Here, up to 12 Words, on One to Two Lines] ACCT 573 Accounting Quality Assignment # 2 April 23rd, 2016 Introduction The purpose of this research assignment is to analyze accounting quality in regards to the requirements set forth by the Sarbanes-Oxley Act of 2002 and SEC reporting requirements for publically traded corporations. Specifically, this paper analyzes the roles of the Board of Directors (BOD) and CEO’s regarding the establishment of an ethical workplace environment, which generates quality accounting information to be used by shareholders and other investors. Next, a proposed strategy will be recommended to a CEO of a publicly traded corporation, in regards to leading an ethical workplace environment which yields high quality accounting data on a consistent basis. Similarly, a suggestions to management will be made concerning providing assurance to investors with reference to upcoming performance forecasts or expected earnings. The next analysis will be focused on evaluating potential consequences to publicly traded corporations when there is a lack of quality within financial accounting and reporting, and making a recommendation on how to minimize those consequences will be provided. Lastly, the requirements of the Sarbanes-Oxley Act will be assessed in regards to the sufficiency of protection placed on stockholders and potential future investors. Roles of the Board of Directors and CEO First and foremost, the roles of Executives and the......

Words: 1306 - Pages: 6

Financial Accounting

...Chapter 1 Financial Statements and Business Decisions ANSWERS TO QUESTIONS 1. Accounting is a system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers. 2. Financial accounting involves preparation of the four basic financial statements and related disclosures for external decision makers. Managerial accounting involves the preparation of detailed plans, budgets, forecasts, and performance reports for internal decision makers. 3. Financial reports are used by both internal and external groups and individuals. The internal groups are comprised of the various managers of the entity. The external groups include the owners, investors, creditors, governmental agencies, other interested parties, and the public at large. 4. Investors purchase all or part of a business and hope to gain by receiving part of what the company earns and/or selling the company in the future at a higher price than they paid. Creditors lend money to a company for a specific length of time and hope to gain by charging interest on the loan. 5. In a society each organization can be defined as a separate accounting entity. An accounting entity is the organization for which financial data are to be collected. Typical accounting entities are a business, a church, a governmental unit, a university and other nonprofit organizations such as a hospital and a welfare organization. A business......

Words: 5852 - Pages: 24

Financial Accounting

...Financial Accouting EXECUTIVE SUMMARY Accounting for intangible assets is a major issue within the accounting environment. The issue is identifiable when it concerns accounting for research and development costs, in particular, internally generated assets. With two imperative standards in practice today, one being the IASB’s selective capitalisation of expenses into an intangible asset once a specific criteria has been reached and the other being the FASB’s system of straight expensing of all expenditure. This subject plays a vital role in the accounting world due to the large amount of money invested into research and development activities, with the Australian Bureau of Statistics 2010 reporting that Business expenditure on R&D (BERD) in Australia alone increased 15% to $14, 380 million up from 07-08. In discussing the different styles taken by the Boards it is easier to identify the impact these standards have on a corporation and its performance, with particular reference being made to Clinuvel Pharmaceuticals Limited, an Australian listed company that is currently undertaking research and development to develop a UV medical protection of the skin from UV and light for sun-related ailments. 1. Clinuvel Activities of R&D Clinuvel Pharmaceuticals Limited (CUV) is a listed Australian biopharmaceutical company based in Melbourne. The focus of CUV is to further research and develop, and eventually commercialise, its leading drug candidate afamelanotide as “a......

Words: 2203 - Pages: 9

Financial Accounting

...Financial Accounting: Basic Accounting Concepts: (The Income Statement) This chapter introduces the idea of income as used in financial accounting, and describes the income statement. Course of discussion outline: The last six basic concepts namely the following: 6. Time period 7. Conservatism 8. Realization 9. Matching 10. Consistency 11. Materiality The nature of income Now let us first differentiate the balance sheet and income statement, balance sheet described were which reports the financial condition of an entity as of one moment in time while the income statement described were which summarizes the result of operation for a period of time. Therefore a flow report, as contrasted with the balance sheet, which is a status report. Financial statement can be illustrated in two ways in which any entity can be described, whether it be a business, a human body, or the universe: 1.) in terms of flow through time 2.) in terms of the its status or state as of one moment of time Flows in a business are continuous (see diagram below) Selling Activities Collection Activities Purchasing or Production Activities Financial Accounting: Basic Accounting Concepts: (The Income Statement) There are three commonly types of businesses, namely merchandising, service oriented, and manufacturing. In all of these three types of businesses the income statement focuses on the section the flow diagram is labelled selling activities. In selling activities......

Words: 2877 - Pages: 12