AICPA and CIMA Propose Management Accounting Framework
The Chartered Institute of Management Accountants and the American Institute of CPAs have a proposed framework with the aim of bringing management consistency in the accounting practice globally.
These organizations representing about 600, 00 students and accountants through the joint venture in Chartered Global Management has developed the “Global Management Accounting Principles’ framework which drives improved business by improved performance in order to assist CEO’s, CFO’s and the benchmark in board of directors. As the discipline takes more significance, the management accounting processes are greatly improved.
Increasingly, the business leaders are turning to the management accountants, this was observed by the organizations for sustainable success in the long run. The AICPA president and CEO, Barry Melancon in a statement said that their goal is to assist management in the accounting profession build organizations that perform highly which can power strong economies globally. From the global consultation, a blue print will be delivered for fast forecasting and decision making that aims to meet the business needs and offer a framework which endures success.
This proposed framework entails guidance on identifying non financial as well as financial data that is appropriate for analysis, the scenarios prioritizing opportunities and also communicating clearly in order to guide improved decisions. The integrity thinking importance is stressed and decision making which is based on evidence.
It is expected that the management accountants have the judgment and ability in making ethical decisions that are objective and which consider the interest of the public. The management accounting therefore remains varied. A comprehensive system that suits their era is hence contributed.
The draft principles have attracted several leaders support in the business community entailing Douglas Flint who is the HSBC group chairman. In his view, he said that management accounting is a crucial aspect of the finance function since it informs the board, management and investors why the numbers are as they are. He therefore believes that the introduction of global management principles in accounting will be quite welcome to the international business community. As such, the introduction of a set of management accounting principles will be very much welcomed to the global business.