The Balanced Scorecard Model Accounting Essay


This article explores some of the company ‘s accounting and fiscal state of affairs to play what function in the company rise of procedure, therefore acknowledging the constructs of answerability, representation and control in the accounting and fiscal patterns. First, we introduce the construct of answerability, representation and control, so give some illustrations about Apple, Facebook and Google these three companies accounting and fiscal patterns. Followed by the existent instance of the above three companies to understand and analyse the answerability, representation and control of these three constructs.

Finally, analysis of the instance of the three companies can more easy understand these three constructs and understand the grounds for the rise of the three companies. The paper concludes that through the construct of answerability, representation and control in the accounting and fiscal patterns, people can break understand the rise of Apple, Google and Facebook.


For a successful company, a comprehensive system of accounting and fiscal patterns is necessary. Accountability, representation and control are really of import in accounting system and fiscal patterns.

As can be seen from the following several instances which these three constructs with the rise of what contact. First, there are a batch of people discuss and define answerability, for illustration, “ Accountability in its broadest sense merely refers to the giving and demanding of grounds for conductaˆ¦ and, in this wide sense, answerability can be seen as ‘a chronic characteristic of day-to-day behavior. ” ( Roberts & A ; Scapens,1985 ) However, how the answerability is reflected in the existent fiscal activities is a job. Some companies fail, such as Enron and Lehman Brothers, but some companies are successful, such as Google, Apple and Facebook. Second, representation is another of import construct, and it has an account. Representation gives administrations the ability “ to exceed the limited spatio-temporal co-ordinates of immediate contexts and to move on marks or cues that represent absent provinces of the universe, i.e.

provinces widening beyond the here and now ” ( Kallinikos, 1995i?‰Thirdly, control is a wide construct and control construct has two interlinked significances. For one construct, the common concern direction thought is supervising and directing action through monitoring and ordinance of behavior and activities. For another, the ownership of a place of laterality and super-ordination allows the exercising of power and subordination. Apple, Google and Facebook in control do hone, merely companies with good control can pull off the fiscal and daily concern of good company. The following analyzing the three constructs in the instance of the three companies including Apple, Google and Facebook.


The placement of the answerability in the fiscal system is same as other system. The pattern of accounting commit the impression of answerability ; it institutionalizes the rights of some people to keep others to account for their actions.[ 1 ]For illustration, Apple ensures its providers comply with the Supplier Code of Conduct through a strict plan of onsite audits at its providers ‘ installations.

An Apple hearer leads every audit, supported by local third-party hearers. Each of these experts is exhaustively trained to utilize Apple ‘s elaborate protocol and to measure demands specified in our Code. Apple reviews all audit findings with the installation ‘s senior direction squad. When a fiscal misdemeanor is found, Apple requires the installation to implement a disciplinary action program that addresses the specific misdemeanor, every bit good as the underlying direction system. Apple drives for the execution of all disciplinary and preventative action programs within 90 yearss after the audit findings.

( Apple SupplierDuty 2012 Progress Report ) Because the reappraisal of fiscal answerability, Apple can construct complete industrial concatenation and provider. This shows that fiscal answerability has played an of import function in the rise of Apple.( Figure 1:Because fiscal internal audit is confidential, it merely shows information about Management answerability system reappraisal consequences.

Financial answerability reappraisal consequences similar to Figurei?‰In Google, Google has an audit commission to cover specifically with the company ‘s fiscal answerability issues. The Audit Committee ‘s chief duty is to supervise Google ‘s fiscal coverage procedure ( including Google ‘s revelation controls and processs and system of internal controls ) . The Audit Committee believes that Google ‘s policies and processs should stay flexible in order to outdo react to altering conditions and fortunes. The undermentioned list includes the Audit Committee ‘s chief repeating procedures in transporting out its duties. This list is intended as a usher, with the apprehension that the Audit Committee can supplement it as appropriate, consistent with the demands of the SEC and the Nasdaq.

( Google Audit Committee Charter ) It can be seen from Google for the attending of fiscal answerability, farther illustrate the position of the answerability in the company ‘s fiscal system.Facebook is a new company. With the successful IPO, its fiscal answerability is bettering. Facebook do non hold complete internal audit system as Apple, meanwhile no Google Audit Committee. However, its fiscal answerability system has its ain features. Facebook income is divided into three partsi?s1, Display Advertising ; 2, income obtained by the user to utilize the practical currency Facebook Credits to purchase practical goods in games and applications ; 3, Search advertisement grosss obtained through the Internet hunt concern. Audit concern after Facebook IPO success is increasing, but the volume of concern is less than Google and Apple.

Nevertheless, Facebook has hired many of the internal audit and outsourcing hearers to happen jobs of fiscal answerability. Critical Accounting Policies need to be made after the completion of the audit. Viewed in this manner, the pattern of accounting can be seen to affect the communicating of a set of values, of ideals of expected behaviour, of what is approved and disapproved.[ 2 ]


Importance of representative has been described at the beginning of article,after that there are three facets of representation including displacementi??abbreviation and remote control. Displacement means Bringing distant events near while maintaining them at a safe distance.

Abbreviation means representational engineerings simplify ( abbreviate ) composite world, doing it manageable. Remote control means Immediacy and organic presence are superseded by distance, imperturbability, and farness.[ 3 ]From displacement facets, Facebook is an illustration. Facebook alternatively of the original societal manner and set up a new societal platform. Facebook platform net income from advertisement, societal web advertisement signifiers alternatively of the original signifier of advertisement. Facebook is a societal networking service web site and a photo-sharing site, the United States ranked foremost 8.5 million exposures uploaded daily on 2007.

Facebook late launched called “ Facebook Live ” streaming unrecorded channel, the channel will be chiefly for Facebook users live famous person interviews, new merchandise launches and other particular events, and to promote users expand interaction and interview invitees. Described above Facebook can portion remote events and maintain a safe distance events. Facebook ‘s gross reached $ 3.

7 billion in 2011 ; the mean gross growing rate is 118 % in the past two old ages. Facebook ‘s mean runing border is 49 % in the past two old ages. The above informations are from set uping “ Facebook unrecorded ” . This shows that the fiscal representation is of import to the rise of company.From abbreviation facets, the balanced scorecard is a representation and the most of import method in accounting and fiscal representation. The balanced scorecard at Apple serves chiefly as a planning device, alternatively of as a control device. To set it another manner, Apple uses the steps to set the “ long moving ridge ” of corporate public presentation, non to drive operating alterations.

[ 4 ]( Figure 2: The Balanced Scorecard ModelBeginning:, Balanced Scorecard Institute, USA )Apple developed a balanced scorecard to concentrate senior direction on a scheme that would spread out treatments beyond gross border, return on equity, and market portion. For the fiscal position, Apple emphasized stockholder value ; for the client position, market portion and client satisfaction ; for the internal procedure position, nucleus competences ; and, eventually, for the invention and betterment position, employee attitudes. Concentrate on market portion and stockholder value ; it is clear that the balanced scorecard is utile for accounting and fiscal system. The balanced scorecard, on the other manus, is good suited to the sort of organisation many companies are seeking to go. The scorecard puts scheme and vision, non command, at the centre.

It establishes ends but assumes that people will follow whatever behaviours and take whatever actions are necessary to get at those ends. The steps are designed to draw people toward the overall vision. Senior directors may cognize what the terminal consequence should be, but they can non state employees precisely how to accomplish that consequence, if merely because the conditions in which employees operate are invariably altering.[ 5 ]For Apple, the largest market portion is really of import for directors.

This is non merely increase gross, but besides attracts package developers. Shareholder value including as a public presentation index, even though this step is a result-not a driver-of public presentation. The step is included to countervail the old accent and focused company, Apple has introduced steps that shift the accent toward clients on gross revenues growing and gross border, steps that ignored the investings required today to bring forth growing for future. In contrast, the stockholder value metric quantifies the impact of proposed investings for concern creative activity and development.[ 6 ]The above two indexs is an of import benchmark in the fiscal system. They are non merely used to develop a concern program, but besides relate to directors ‘ compensation programs.

Obviously, the balanced scorecard is really of import for the company ‘s operating and fiscal systems.From distant control facets,