Global Management Accounting Principles

The AICPA and CIMA recently released a document which they hope will lead to the creation of a set of Global Management Accounting Principles.  You can find the document along with other information on the effort here. The Principles are expected to help organizations make the best decisions and at the same time improve the understanding of the professionalism of the management accountant.

 The document defines three overarching principles:

  1. Preparing relevant information
  2. Modelling value creation
  3. Communicating with impact

 It talks about how they are relevant in the performance management cycle and business model and then focuses on how they apply to 12 management accounting practice areas which are:

  1. Budgeting
  2. Cost transformation and management
  3. External reporting
  4. Financial controls
  5. Investment appraisal
  6. Price and product decisions
  7. Project management
  8. Regulatory adherence and compliance
  9. Resource allocation
  10. Risk management
  11. Strategic tax management
  12. Treasury and cash management

 The AICPA and CIMA are asking for feedback, so if you have something to say on this topic they would love to hear from you by May 10, 2014.

One Comment on “Global Management Accounting Principles”

  1. Alan says:

    This is one of those academic dilemmas where if you’re just starting out it’d be better to stay ahead of the curve than to raise the curve.

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