The Chartered Institute of Management Accountants (CIMA) and the American Institute of Certified Public Accountants (AICPA) have proposed a comprehensive framework to bring consistency to management accounting practices around the world.
According to CIMA Regional Director for Africa, Samantha Louis, the collaboration is expected to help organisations make smarter and faster decisions for the long-term amidst growing complexity and change.
The organisations said in a joint statement that the draft framework, entitled â€˜Global Management Accounting Principles: Driving better business through improved performanceâ€™, is now out for consultation with feedback sought from businesses and institutions across the world.
The statement quoted the Chairman of the International Integrated Reporting Council, Professor Mervyn King as saying: â€œI am pleased to see a framework that provides disciplined management accounting practices and ensures that reporting is fit for the 21st century. In an era of a gradual return to economic growth, integrated thinking is essential for sustainable value creation.â€
According to IIRC boss, the ability to use information effectively will be a crucial part of sustainable growth and ensuring the business models of organisations and their outputs have positive impacts financially, socially and environmentally.
Speaking on the professional relevance of the collaboration, Louis stated that management accountants have the ability and judgment to make objective, ethical decisions that consider the public interest. He, however, admitted that the quality of management accounting systems remain varied, adding that the principles will enable organisations to leverage financial and non-financial data, and link different parts of an organisation in a way that many still lack.
â€œWe are asking businesses and other relevant organisations across the globe to tell us how our draft framework can best meet their fast-changing needs. By working together, we can contribute to a comprehensive system fit for our era of uncertainty that will make business better,â€ he said.