CIMA and AICPA Release New Global Management Accounting Principles to Drive Better Organisational Decision-Making

London and New York (22 October 2014) — CIMA and the AICPA today released new Global Management Accounting Principles to improve decision-making as organisations struggle with data overload, dispersed workforces and the blistering speed of change.

Research commissioned by CIMA and the AICPA shows the scope of the challenges. The survey, conducted in August by Longitude Research, reached 1,100 senior executives globally and found: 

         Organisations are rethinking how decisions get made. 73% of those surveyed said successful companies will increasingly empower workers to make autonomous decisions.

         However they lack a framework to ensure quality. Just 36% said that today they can easily ensure consistent quality decisions at all levels of their organisations.

         They need to make better use of available information. 91% want a process to pull more insight from financial and non-financial data to inform decisions.

         They are looking to the finance function for help. 89% said a stronger partnership with finance functions in the decision process will help them better manage their organisations over the coming years.

The Global Management Accounting Principles respond to these needs, providing a blueprint for effective analysis that can be universally applied in organisations large and small, public and private anywhere in the world.

They were developed by CIMA and the AICPA with input from CEOs, CFOs, academics, regulators and other professionals in 20 countries on five continents during a public consultation this year.

The four Principles focus on breaking down silos through influential communication; surfacing the most relevant and reliable data for examination; driving analysis that reveals impact on organisational value and promoting integrity and trust that protects long-term sustainability. 

The framework details how each Principle is applied across 14 different practice areas, ranging from investment appraisal to treasury and cash management.

Charles Tilley, FCMA, CGMA, Chief Executive of CIMA, commented: 'We work with a range of organisations across the world and can see that decision-making is becoming more and more difficult as complex information flows so much faster. 

'Too often, impulse substitutes for insight and we need a dramatic improvement in the way decisions are made at all levels.  These Principles will help CEOs and their teams achieve higher-quality decision-making across their organisations.'

Management accounting is like the GPS for the C-suite, guiding strategy through the provision of future focused insight and analysis.

While it sits alongside financial accounting, it has lacked the same level of guidance to ensure consistent practice worldwide. The Principles help fill the gap.

Barry C. Melancon, CPA, CGMA, President and Chief Executive of the AICPA, said: 'The issuing of these Principles is significant. They will help bring structure to chaotic complexity and empower evidence-based decision-making that prioritises long-term success over short-term gains.

'With the Principles in place, management, stakeholders, investors and the public can have more confidence in the actions that organisations take.'

The Principles are the latest milestone for CIMA and the AICPA, which are elevating the profession of management accounting through a global joint venture that also awards the Chartered Global Management Accountant (CGMA) designation to qualified professionals.

The Principles are already receiving support from business and government leaders. 

Jean-Marc Huët, Chief Financial Officer of Unilever, said: 'It is crucial that all elements of an organisation - financial and non-financial - share information.

'Taking the holistic approach is the best of advice I could give any new CFO. In my eyes non-financial factors, such as the quality of our people, are as important as numbers. These Principles will support CFOs to build a stronger approach to better managing their businesses.'

Julian Kelly, Director General of Public Spending and Finance, HM Treasury said: 'Good financial management in the civil service is crucial to the delivery of a more efficient public sector, leading to better decisions on spending and better government.

'These Principles are a welcome step towards a better system, and I am delighted to say HM Treasury fully endorses the endeavour.'

Stephen Haddrill, Chief Executive Officer of the Financial Reporting Council said: 'The Global Management Accounting Principles provide a framework for high standards of management information and financial control which are essential in decision-making. 

'I encourage boards of directors to take full account of this best practice to support the long-term stewardship of their organisations.'

Paul Druckman, Chief Executive Officer of the International Integrated Reporting Council said: 'Decision-making across organisations must focus on the creation of value over the short, medium and long-term.

'The IIRC welcomes this new framework to help organisations bring together crucial information from all areas of a business, and encourage integrated thinking and action.'

See more information about the Principles.


For press enquiries please contact:


Katie Scott-Kurti, CIMA

4 (0)20 8849 2347

Neil Hedges, Headland

4 (0)2073675244 / +44 (0)780 857 2725

Kitty Owen, Headland

4 (0)2073675233 / +44 (0)792 080 2627

Alexandra Feast, Headland

4 (0)20 7367 5245 / +44 (0)755 117 1933


Jonathan Cox, AICPA 
+1 (0)919 413 9979