17 July 2023
Explore how these principles equip management accountants to navigate evolving business challenges, embrace sustainability, and make high-value decisions in the modern era.
The Association of International Certified Professional Accountants (AICPA) and Chartered Institute of Management Accountants (CIMA) jointly announced the release of the latest edition of their Global Management Accounting Principles (GMAP). Designed as a roadmap of best practices, the GMAP serves as an invaluable guide for management accountants worldwide, empowering them to navigate complex business challenges. The updated principles incorporate insights gained from over a decade of practice analysis, enabling professionals to adapt to the rapidly transforming business environment.
In recent years, the business world has experienced a profound shift characterized by evolving work practices, changing business models, and heightened customer expectations. Concurrently, advancements in technology have presented finance teams with new opportunities. Consequently, the role of the finance department has rapidly evolved, with finance professionals assuming the critical role of strategic business partners. By leveraging their analytical prowess and managerial expertise, they delve into emerging areas such as artificial intelligence adoption, automation, and Environmental, Social, and Governance (ESG) practices.
The revised GMAP reflects this changing landscape, placing emphasis on applying management accounting techniques to facilitate value-driven decision-making that encompasses diverse capitals, including human and natural resources. The principles act as a compass for management accounting professionals, empowering them to steer businesses toward greater agility, adaptability, and sustainable growth. Notably, the updated GMAP underscores the significance of non-financial aspects of management accounting, highlighting the inclusion of sustainability data and its integration into decision-making processes.
Ash Noah, CPA, CGMA, FCMA, Vice President and Managing Director of Learning Education & Development at the Association of International Certified Professional Accountants, expressed the importance of the new Global Management Accounting Principles in today’s complex business landscape. Noah stated, “We continue to witness a significant acceleration in the complexity of business decision making in the post-pandemic world. This means organizations require increasing levels of guidance to create value in the short, medium, and long term. The new Global Management Accounting Principles define best practice and provide a framework to steer organizations to sustainable success.”
By adhering to these principles, management accountants gain a comprehensive toolkit that supports effective strategic, management, and operational decision-making. The principles go beyond traditional finance disciplines, encompassing critical areas such as artificial intelligence and environmental impact. As organizations embrace these principles, management accountants are poised to receive recognition within their organizations, positioning themselves as active contributors in value creation.
The development of the updated GMAP was made possible through extensive research conducted by AICPA and CIMA, examining every facet of management accounting. The wealth of up-to-date knowledge accumulated during this research serves as the foundation for the new edition. Additionally, the research has yielded new tools that offer enhanced insights into decision-making processes and overall business journeys.
One such tool is the updated version of the AICPA & CIMA Strategic Scorecard, which prioritizes performance evaluation and strategic considerations within enterprise governance. By employing these cutting-edge resources, management accountants can effectively harness their expertise and contribute to the sustainable success of their organizations in the dynamic business landscape.
As the business world continues to evolve, the Global Management Accounting Principles stand as a beacon, guiding professionals towards value creation, sustainable practices, and strategic decision-making. With the updated GMAP, management accountants are well-equipped to navigate the complexities of the modern era and drive their organizations towards a prosperous and resilient future.