CIMA CGMA members are qualified to work across an organisation, not just in finance. In addition to strong accounting fundamentals, CIMA teaches strategic business and management skills:
- Analysis – they analyse information and using it to make business decisions.
- Strategy – they formulate business strategy to create wealth and shareholder value.
- Risk – they identify and manage risk.
- Planning – they apply accounting techniques to plan and budget.
- Communication – they determine what information management needs and explain the numbers to non-financial managers.
Now we have the worlds first management accounting standard.
BSI, the business standards company, has published PAS 1919:2016 Guide to management accounting principles. The guide which was sponsored by CIMA (Chartered Institute of Management Accountants) also saw collaborative input from such organizations as Environment Agency, Fujitsu, NHS and Siemens.
Designed as a best-practice guide to management accounting, defining what “good” looks like, PAS 1919 provides organizations with a framework to support their decision making and contribute to overall improved performance and sustained success.
David Fatscher, Head of Market Development for Sustainability and Services at BSI said: “CFOs have much more reporting responsibility than they once did and the management accounting function is now an integral part of an organizations strategic planning. PAS 1919 outlines the key principles and activities they have to deliver on to assure stakeholders of sustainable business performance.”
The PAS sets out four outcome-based management accounting principles, and provides a basis on which organizations can set their own benchmarks for the management accounting function.
- Communication provides insight that is influential – encouraging insightfulcommunication that drives better decisions across an organization
- Information is relevant – reviewing past, present and forward looking performance management information
- Impact on value is analysed – understanding an organization’s strategy and business model
- Stewardship builds trust – balancing short-term commercial interests against long term value for stakeholders
Tony Manwaring, CIMA’s Executive Director, External Affairs, said: “This sets the standard for decision making around the world. The content of PAS 1919 represents best practice management accounting and enables organizations to take decisions that drive value in the short, medium and long-term.”
SCA Group are now working with CIMA and taking part in the Global Management Accounting Principles:
1. Self-assessment Tool Pilot Community
2: Pioneer Advocates
The team at SCA are excited to be involved the project and to use the tools to improve their management accounting.