Validity of Accounting Information for Management in the Process of Decision Making

All the credits for the transformation of social and economic structure of the developed countries on the global level go to the corporate management, but we should bear in mind that corporate management as such has transformed itself, becoming modern and very powerful.3 Although there are various opinions on the factors that indicate the sources of power, the following processes have had a dominant influence: 1. expansion of the knowledge base 2. development of applied technologies 3. introduction of new concepts in the management of corporations. The sequence of these concepts is random but the process of introduction of new concepts in the corporation seems to have had the greatest influence. Serbia, as a developing country, did not follow the trend of the development in this area which, after the transformation from state into private ownership, had numerous negative economic and social indications such as: growth rate, unemployment, inflation, fiscal deficit, gross domestic income (GDP), trade balance, external debt, export, investments, etc. This paper aims to point out the importance of the accounting information for the management in strengthening the competences of corporate management in the domestic economy.