Championed by CIMA and the American Institute of Certified Public Accountants (AICPA), the Global Management Accounting Principles to be launched at end-2014 can help accountants and finance professionals create optimum value for business. These principles outline the values and qualities that represent best practice management accounting on a global scale.
There are three major principles. Preparing relevant information involves the identification, collection, validation, preparation and storage of information. It requires achieving an appropriate balance between past, present and future-related information; internal and external information; and financial and non-financial information.
Modelling value creation requires a thorough understanding of the business model and wider macro-economic environment. Communicating with impact involves communicating the results of scenario analysis in a manner tailored to the decision being considered and to decision-makers or other audiences.
It requires breaking down complexity and transparency about how conclusions have been reached.