A FRAMEWORK for consistent management accounting principles has been proposed by CIMA and the American Institute of CPAs (AICPA).
The draft framework, Global Management Accounting Principles: Driving better business through improved performance, is aimed at creating robust management accounting to help businesses make better decisions.
“Management accountants have the ability and judgement to make objective, ethical decisions that consider the public interest. But the quality of management accounting remains varied,” said CIMA chief executive Charles Tilley (pictured). “Our principles will enable organisations to leverage both financial and, importantly, non-financial data. They will provide the forward-looking focus and link different parts of an organisation in a way that many still lack.”
The principles set out best practice management accounting, including guidance on modelling value creation, communicating with impact, and a diagnostic tool to ensure businesses are making the most efficient use of key information.
Other key finance representatives welcomed its launch. HSBC group chairman Douglas Flint said stakeholders should “input into this important consultation”.
Paul Druckman, CEO of the International Integrated Reporting Council, said the plan should be supported, “which will help more and more organisations deliver value over the long-term”.
The consultation closes on 10 May.