Competitor-focused accounting : an empirical study in the Maltese context

Abstract

This dissertation explores CFA practices within the local scenario. The study's objectives were to appraise CFA adoption in Maltese companies and assert its degree of formalisation; to assess practitioners' perceptions of the extent to which CFA could be helpful to their organisations and appraise any generic applications of CFA; and to establish the role of the accountant in CFA. The objectives of this study were achieved by interviewing six of the local food and beverage companies. A local telecommunications company's viewpoint was also obtained. The results indicate that levels of CFA formalised application appear limited, especially when compared to the importance perceived by most of the interviewees. Most of the practices were noted to be conducted in an unstructured and ad hoc manner. The main generic use of CFA is in connection with benchmarking and performance measurement. Although it is suggested that CFA is a practice within the role of the management accountant, it was noted that CFA is carried by the accounts department and other departments, mainly the marketing department, interchangeably. Several factors were identified as contributing to the lack of CFA formalisation: the main concern being the lack of available information to conduct CFA.