Introduction:

In most developing countries, government’s participation in economic activity is usually

significant. One of the ways through which the government has intervened in the economy is
through the establishment of public enterprises. Public enterprises are statutory bodies operating
services of an economic or social character or both on behalf of the government.
Being a mixed economy, individuals, also own and operate enterprises. A firm is
classified a private enterprises when it is founded and managed by an individual and or a group
of individuals. These firms are expected to be registered in the local government within which
operates.
The activities of the public and private enterprises have been on the increase in recent
times, which necessitated the introduction of the accounting practices to check and monitor the
financial activities of these enterprises. A book titled, “principles of Accounting, (1985 defines
accounting as a process by which data relating to the economic activities of an organization are
measured, recorded and communicated to interested parties for analysis and interpretation).
The earliest method of accounting was the use of money to record the amount of
agricultural commodities like yams, cassava and livestock, which passed from one person to
another. The historical development of modern accounting practices has been closely related to
the economic development of the country. As business organization grows in size and
complexity, management and outsides become more clearly different from the outside group,
which includes owners of the firm (stock holders), creditors, government employers and the
general public.
This differentiate the need to have accounting departments in the enterprises to give
accurate financial information for use in judging the performance of the management and to
satisfy the outside demands of the general public who are already interested on whether the
enterprise is growing of not.
The role and nature of accounting in the public and private enterprises is primarily to
ensure accurate accountability in these sectors and present fine financial position of the
enterprises. The role is of utmost important in any organization. An organization can only grow
or make profit when its resources are well managed. And resources can only be well managed
when the accounting department of the organization gives accurate financial information to know
how much the enterprise is having. It is only when, this is done, that the firm allocate its
resources and knows what is to be done.

Issue:
Examine the extent to which the role and nature of management accountant might differ
within the public and private sectors.

Body:
Management accountants interpret financial information to make business decisions.
Broadly, this role combines accounting, finance and management with the techniques needed to
drive successful businesses. They provide business data and analysis to managers within
organizations to assist in business decision-making and control. They tend to be more involved
with general management, working with managers to analyze cost and revenues: the focus is on
the analysis and reporting of a company’s financial position in order to provide insight into
business performance. Specifically, they provide the monthly management accounts, and budgets
and forecasts to aid business planning.