Principles informed by global research and insight from CEOs, CFOs, regulators, other professionals in 20 countries across 5 continents
Hong Kong, Oct 23, 2014 - (ACN Newswire) - The Chartered Institute of Management Accountants (CIMA) and the American Institute of CPAs (AICPA) - two of the world's largest accountancy bodies - yesterday released new Global Management Accounting Principles to improve decision-making as organisations struggle with data overload, dispersed workforces and the blistering speed of change. Research commissioned by CIMA and the AICPA shows the scope of the challenges. The survey, conducted in August by Longitude Research, reached 1,100 senior executives from 35 countries and found: -- Organisations are rethinking how decisions get made. 73% of those surveyed said successful companies will increasingly empower workers to make autonomous decisions. -- But they lack a framework to ensure quality. Just 36% said that today they can easily ensure consistent quality decisions at all levels of their organisations.-- They need to make better use of available information. 91% want a process to pull more insight from financial and non-financial data to inform decisions.-- And they are looking to the finance function for help. 89% said a stronger partnership with Finance in the decision process will help them better manage their organisations over the coming years.
The Global Management Accounting Principles respond to these needs, providing a blueprint for effective analysis that can be universally applied in organisations large and small, public and private anywhere in the world. They were developed by CIMA and the AICPA with input from CEOs, CFOs, academics, regulators and other professionals in 20 countries on five continents during a public consultation this year. The four Principles focus on breaking down silos through influential communication; surfacing the most relevant and reliable data for examination; driving analysis that reveals impact on organisational value and promoting integrity and trust that protects long-term sustainability. The framework details how each Principle is applied across 14 different practice areas, ranging from investment appraisal to treasury and cash management. Charles Tilley, FCMA, CGMA, Chief Executive of CIMA, commented: "We work with a range of organisations across the world and can see that decision-making is becoming more and more difficult as complex information flows so much faster. Too often, impulse substitutes for insight and we need a dramatic improvement in the way decisions are made at all levels. These Principles will help CEOs and their teams achieve higher-quality decision-making across their organisations." Management accounting is like the GPS for the C-suite, guiding strategy through the provision of future focused insight and analysis. While it sits alongside financial accounting, it has lacked the same level of guidance to ensure consistent practice worldwide. The Principles help fill the gap. Barry C. Melancon, CPA, CGMA, President and Chief Executive of the AICPA, said: "The issuing of these Principles is significant. They will help bring structure to chaotic complexity and empower evidence-based decision-making that prioritises long-term success over short-term gains. With the Principles in place, management, stakeholders, investors and the public can have more confidence in the actions that organisations take." The Principles are the latest milestone for CIMA and the AICPA, which are elevating the profession of management accounting through a global joint venture that also awards the Chartered Global Management Accountant (CGMA) designation to qualified professionals. The Principles have already received widespread support from business and government leaders.
Ms Amy Lam FCMA, CGMA, Group Finance Director, Jardine Shipping Service and Chairlady of CIMA Hong Kong, said: "With the voluminous information available today, it is important that these are presented and analysed appropriately for various stakeholders to facilitate their decision making. GMAP has really served this purpose by bringing a framework that every business enterprises can adopt and tailor for their own use. This will certainly bring out the optimal use of Management Accounting and adding value to companies in the long run."
Dr Aidan Goddard FCMA, CGMA, CFO&COO - Asia Pacific, L'OCCITANE en Provence and Vice Chairman of CIMA Hong Kong said "The publication of global management accounting principles will further clarify for stakeholders, whether employers, managers, members or students, the scope and importance of the discipline as they work to add value for their respective organisations." For more information about the Principles, visit www.cgma.org/principles.
For press enquiries please contact:
Chartered Institute of Management Accountants (CIMA)Vivian FungTel: (852) 3741 1956 / (852) 9696 5649Email: vivian.fung@cimaglobal.com
Strategic Financial Relations LimitedIngrid Cheng / Rita FongTel: (852) 2864 4836 / (852) 2114 4939Email: ingrid.cheng@sprg.com.hk/ rita.fong@sprg.com.hk
The Chartered Institute of Management Accountants (CIMA), founded in 1919, is the world's leading and largest professional body of management accountants, with over 218,000 members and students operating in 177 countries, working at the heart of business. CIMA members and students work in industry, commerce, the public sector and not-for-profit organisations. CIMA works closely with employers and sponsors leading-edge research, constantly updating its qualification, professional experience requirements and continuing professional development to ensure it remains the employers' choice when recruiting financially-trained business leaders.
Professionalism and ethics are at the core of CIMA's activities with every member and student bound by robust standards so that integrity, expertise and vision are brought together.
CIMA has formed a joint venture with the American Institute of CPAs (AICPA) to establish the Chartered Global Management Accountant (CGMA) designation. CGMA is the global quality standard that further elevates the profession of management accounting. The designation recognises the most talented and committed management accountants with the discipline and skill to drive strong business performance.
CIMA is proud to be the first professional accounting body to offer a truly global product in the fast-moving area of Islamic Finance.
For more information about CIMA, please visit www.cimaglobal.com
Follow us on facebook: www.cimaglobal.com/CIMAHongkong
Chartered Global Management Accountant (CGMA)Two of the world's most prestigious accounting bodies, AICPA and CIMA, have formed a joint-venture to establish the Chartered Global Management Accountant (CGMA) designation to elevate the profession of management accounting. The designation recognises the most talented and committed management accountants with the discipline and skill to drive strong business performance.
American Institute of CPAs (AICPA)The American Institute of Certified Public Accountants (AICPA) is the world's largest association representing the accounting profession, with more than 394,000 members in 128 countries and a 125-year heritage of serving the public interest. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting.
Source: Chartered Institute of Management Accountants
Copyright 2014 ACN Newswire. All rights reserved.
