The Principles aim to improve decision-making as organizations struggle with data overload, dispersed workforces and the blistering speed of change.
Global research commissioned by CIMA and the AICPA shows that organizations are rethinking how decisions get made. Globally, 73% of those surveyed said successful companies will increasingly empower workers to make autonomous decisions; versus 75% in APAC.
But they lack a framework to ensure quality. Just 36% globally said that today they can easily ensure consistent quality decisions at all levels of their organizationss; versus 41% in APAC.
The study also shows that organizations need to make better use of available information. Ninety-one percent globally want a process to pull more insight from financial and non-financial data to inform decisions; versus 94% in APAC.
Organizations are also looking to the finance function for help. A majority or 89% globally said a stronger partnership with finance in the decision process will help them better manage their organizationss over the coming years; 97% of respondents in APAC want to strengthen this partnership, the highest percentage of any region.
The Global Management Accounting Principles respond to these needs, providing a blueprint for effective analysis that can be universally applied in organizationss 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 organizationsal 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.
"Management accounting is like the GPS for the C-suite, guiding strategy through the provision of future focused insight and analysis," says Charles Tilley, FCMA, CGMA, Chief Executive of CIMA. "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."
The Singapore Accountancy Commission (SAC), Institute of Singapore Chartered Accountants (ISCA) and British Chamber of Commerce Singapore are supporting partners of the launch of the Principles.
“It is timely for CIMA and AICPA to launch the Global Management Accounting Principles as our business environment is getting increasingly complex, volatile and challenging,” says Uantchern Loh, Chief Executive, Singapore Accountancy Commission.
Lee Fook Chiew, Chief Executive Officer of the Institute of Singapore Chartered Accountants, said, "The Principles provide a framework for quality decision-making when businesses are affected by increasing complexity, data deluge and disruptive innovation. It guides decision-makers in navigating change in a rapidly changing environment."
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.