Proposed JV to enhance understanding, practice of management accounting worldwide
NEW YORK and LONDON (March 17, 2011) – The American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants, based in London, are proposing a joint venture that would give management accountancy a higher profile in the United States, promote the professional development of management accountants across the world and advance the U.S. Certified Public Accountant as a worldwide standard of professional excellence in accounting.
The proposed joint venture would combine the strength of the AICPA in North America with CIMA’s presence in Europe, the Middle East, Africa, Asia and elsewhere.
The AICPA and CIMA would create a new not-for-profit joint venture that would promote a new, globally recognized management accounting designation. The proposal is subject to approval by governing bodies of both organizations and will be voted on separately by the CIMA and AICPA councils in May.
“We are delighted and fortunate to be able to work with CIMA as an established global partner that brings a wealth of experience and knowledge to this exciting new proposal,” AICPA Chairman Paul Stahlin said. “If approved, this joint venture promises to create long-term strategic value for our members and the companies they work for.”
CIMA President George Glass said: “This agreement would give CIMA and AICPA truly global reach. The new venture would have an unrivaled depth of resources to meet the needs of both organizations and their individual members around the world. We believe that the new qualification would prove hugely appealing in mature and emerging markets.”
CIMA is the largest professional body in the world focused exclusively on management accounting and the AICPA is the world’s largest professional accounting organization with members in a wide range of accounting and financial executive roles. Together, the new venture would cover more than 550,000 members and students worldwide.
AICPA President and CEO Barry Melancon said: “High-quality management accounting professionals who combine expertise with a deep commitment to ethics and integrity serve the public interest. This joint venture would help produce and recognize professionals around the world committed to excellence in management accounting, enterprise and performance strategy.”
CIMA Chief Executive Charles Tilley said: “Management accounting is where finance and business meet and helps corporations build more efficient and effective organizations. Management accountants provide the expertise and information that enable organizations to make business-critical decisions. Professionals who earn the new designation will have achieved proficiency and leadership in management accounting.”
Under the terms of the proposed agreement, the venture provides for equal decision-making through a 50:50 board of directors with CIMA and AICPA rotating the role of chairman. The new joint venture would be 60 percent owned by the AICPA.
The pathways for obtaining the new credential would vary. Recognizing the significant educational and professional background of U.S. CPAs, AICPA voting members with at least three years working in management accounting or a financial management role would qualify for an accelerated route to obtaining the new designation. Non-voting AICPA members in the United States would not be eligible to obtain the credential.
Those holding the new designation would commit to an ongoing, self-directed program of developing and maintaining competency in management accounting as well as leadership and strategy. This knowledge base would be derived from an expert-panel assessment of skills and competencies needed to succeed in various career paths in management accounting. This continuous career development model would be based on a contemporary, technology-enabled approach and would focus on competency maintenance rather than required hours in coursework.
The proposed new designation would be issued by the joint venture on behalf of the AICPA and CIMA, with membership remaining with the existing organizations. In the Americas outside the United States, non-U.S. CPAs could obtain the new designation as AICPA international associates after a rigorous assessment process. In the rest of the world, new designation holders would become members of the Chartered Institute of Management Accountants after the same assessment process.
The Chartered Institute of Management Accountants, founded in 1919, is the world’s leading and largest professional body of management accountants, with 183,000 members and students operating in 168 countries, working at the heart of business. CIMA members and students work in industry, commerce and not for profit organizations. CIMA works closely with employers and sponsors leading-edge research, constantly updating its qualification, professional experience requirements and continuing professional development to ensure it remains employers’ choice when recruiting financially trained business leaders. For more information about CIMA, please visit www.cimaglobal.com. Follow us on Twitter at www.twitter.com/CIMA_News.
The American Institute of Certified Public Accountants (www.aicpa.org), founded in 1887, is the world’s largest association representing the accounting profession, with nearly 370,000 members in 128 countries. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting; membership is also available to accounting students and CPA candidates. The AICPA sets ethical standards for the profession and U.S. auditing standards for audits of private companies, non-profit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination. The AICPA maintains offices in New York, Washington, DC, Durham, N.C., Ewing, N.J. and Lewisville, Texas. Media representatives are invited to visit the AICPA Press Center at www.aicpa.org/press. Follow us on Twitter at www.twitter.com/AICPANews.