Interfunctional cooperation in progressing accounting for brands: The case for brand management accounting

ISSN： 1832-5912

Source： Journal of Accounting and Organizational Change, Vol.2, Iss.3, 2006-09, pp. : 229-247

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Abstract

Purpose - The purpose of this paper is to identify brand management accounting as a further approach to accounting for brands and to suggest a number of possible measurement metrics it might incorporate. Design/methodology/approach - The paper is discursive in nature, developing a critique of existing approaches to accounting for brands before considering a number of attributes of a new approach. Findings - The growing importance of brands as a key source of competitive advantage has been among the most visible changes in many business organisations in recent years. Effective strategic brand management, therefore, poses a major challenge to both accountants and their marketing colleagues. To date, the history of accounting for brands has largely been concerned with the derivation of brand valuations suitable for financial accounting and reporting purposes. Although the merits of a management accounting perspective on brands have been recognised for some time, recent studies indicate that to date it has failed to attract much support. New approaches to accounting for brands are now required. Underpinned by high levels of interfunctional cooperation between management accounting and marketing management practitioners, brand management accounting examplifies the more inclusive approach to the task of strategic management increasingly evident within contemporary organisations. Originality/value - The paper integrates both existing and new insights informed by the accounting and marketing literatures in an attempt to promote a further approach to the task of accounting for brands.