201509 CM September

MANAGEMENT
ACCOUNTING IS DEFINED AS
‘THE SOURCING, ANALYSIS,
COMMUNICATION AND USE OF
DECISION-RELEVANT FINANCIAL
AND NON-FINANCIAL
INFORMATION TO GENERATE
AND PRESERVE VALUE FOR
ORGANISATIONS’.
accounting standard.”
Arguably its most significant achievement
has been CIMA’s joint venture with its
counterpart in the US, the American Institute
of Certified Public Accountants (AICPA), in
developing a new designation, the Chartered
Global Management Accountant (CGMA).
In doing so they have created a global,
professional community of more than
600,000 professional accountants in almost
180 countries, and the numbers are growing.
And CIMA has not stopped there. Most
recently it has created a Competency
Framework, understanding what ‘good’
looks like and updating its exam syllabus
to create a clear career path for the newly
qualified, managers, senior manager and
CFOs.
It has also introduced Global
Management Accounting Principles, to
help support the development, execution
and refinement of strategy through the
performance management system, as
well as to support the core activities of the
management accounting function.
“The Principles are intended to be
universally applicable to help organisations
large and small, public and private, extract
value from the increasing volume
of available information, Charles says. “They
are aimed at CEOs, CFOs and members of
boards of directors who have oversight of
their organisations’ performance.”
So what does the future have in store?
Charles believes there has never been a
better time to be a management accountant:
“In the last 30 years, businesses have
changed dramatically. Whereas 80 percent
of the value used to be on the balance
sheet, now it’s closer to 20 percent, so the
role of the accountant has shifted. External
forces have to be better understood. Of
course they must still manage the balance
sheet, but do a great deal more besides.
Now the focus is on where they can add
value, to align financial and non-financial
Key Performance Indicators (KPIs) and
develop plans and strategies that are
evidence based.”
HIS FIRST LOVE WAS
FARMING AND UPON LEAVING
SCHOOL WAS ALL-SET ON
AGRICULTURAL COLLEGE
BUT THERE WAS A SNAG:
“MY FATHER SAID THAT HE
COULD NOT AFFORD TO BUY
ME A FARM AND INSTEAD
HAD A FRIEND WHO WAS AN
ACCOUNTANT AND THE REST
IS HISTORY.
The recognised standard in credit management
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