A Study on Management Accounting Practices in Commercial Banks of Nepal

Abstract

Outsourcing in the commercial sector has been an issue of much debate in the nepalies commercial sector over the last one and half decades. The following a decade long experimentation elsewhere in the walk of commercial sector reforms primary in w estern countries. It has impacted upon various tiers of the neplies commercial sectors since the last eighties. The reason for such debates contry on the role of government in srving it citizens from a shrinking revenue base and rising on employment level. After the early 1990 management theory have challenged the eficiencies of governments. Government production has been laveled efficient and in effective. Two redress these alligation, various countries adopted major to lift the performancwe of the commercial sector. Some of the major where administrative in nature while others directly impact the operation aspects of government service provision. As a result intallectual current followed back and forth among countries about their practice to address the in efficiecies. Overll the tieres of government where scritinished for thir performance. The local government in different countries were seem to have addressed their concems more than any other level of government . this is evidienced by the prevalence of rich body of literature on contracting outing local government context. In occassionally the outsourcing practice in local government locked the regular demanded by critics. Allegation were made that the methods for evaluating government efficiency and of reform for making sourcing decision are historically falawed .Through these didn’t bear much on the decision of the commercial servent in the past, they matter aloting recent time, especially in the walk of declining revenue base in local government . the advocates demand input from accounting professionals in making their administrative decision. In particular outsourcing of big ticket items over multi year perod attract the attension of local government bodies. So their have in incresing call for more rich in to outsourcing decision using contemporary manageriqal and accounting practice. The role of local government management accounts suddenly became prominates within their organization. This thesis has address thesis gap in the literature by introducing holistic frame work for pricing government production and evaluating big decision. Attempts have been made to use theory trangulation, drawing unliterature from commercial administration, economics, management accounting and government financial management.The conceptual framework of the thesis extends reseach to date by bringing tin the theoretical and practical rrigour for competetively pricing internal bids and making decision. A case study method has been adopte d to collect and analysis data from primary and secondary sources. In analysing data , the triangulati0on approach has been used reinforce the finding and validate the conclusion reached in this thesis . A local government council in nepal has been used to conduct the case study. The major findings of this thesis are that outsourcing practice in the reasearched the commercial sector reflected two distinect the teoretical perspective, the transaction management theory .

Overall , outsourcing practice in the researched organization whre not prevallent . But after the introduction of the commercial sector reforms. Ther process of sourcing decision were most more formalaist , and the manegerial accountability was made more rigourous. Finally, overahead allocation

played a vital role in management internal bids in both case. Especially, the role of overall allocation in bid commercial emerged as a dominant theme after the introdution of commercial sector reform in the researched organizzation . It required the introduction of commercial sector and management practice The reseach organization changed its accounting information in general and management accounting system in particular, across the boared , borrowing the private sector manegerial an d accounting expractise . It was also revaled that strategic managemet accounting has enourmous potential to reshaped the accounting and operatin g environment of the research organization.