Advancing the Science of Management Accounting: A Joint Venture between AICPA and the Chartered Institute of Management Accountants

Transcription

1 Advancing the Science of Management Accounting: A Joint Venture between AICPA and the Chartered Institute of Management Accountants

2 Table of Contents Background... 1 The Chartered Global Management Accountant Credential... 1 Pathways to Designation... 3 CGMA Professional Development Resources... 3 The Joint Venture... 4 Conclusion... 4 Copyright 2011 American Institute of CPAs

3 Background As partners in advancing the accounting profession, the American Institute of CPAs (AICPA) and state societies work to promote and protect the accounting profession, addressing its increasing practice diversity and speaking on behalf of all U.S. CPAs and the profession. Consistent with that mission, the AICPA explored an opportunity for U.S. CPAs who work in business, industry and government that meets three priorities in the AICPA strategic plan: People, Professional Excellence and International. The AICPA and state societies recognize their unique responsibility to help members understand the issues and opportunities presented by the increasingly global nature of accounting and business. The opportunity, recently and unanimously approved by the AICPA s governing Council, is the creation of a new internationally recognized credential for management accounting, called the Chartered Global Management Accountant (CGMA), through a joint venture between the AICPA and the Chartered Institute of Management Accountants (CIMA). The Chartered Global Management Accountant Credential The new credential is called the Chartered Global Management Accountant (CGMA). The credential advances the science of management accounting, while supporting and growing the U.S. CPA as the worldwide standard of professional excellence in accounting. It also recognizes the unique competencies and expertise of management accountants who are leading the world s most successful organizations and providing employers with the best professional management accounting talent to drive sustainable business outcomes. The CGMA credential demonstrates management accounting expertise in such areas as leading strategically with management to make more informed decisions; helping organizations manage change, risk and uncertainty; protecting corporate assets; and promoting operational efficiency and effectiveness. Alongside their U.S. CPA designation, the CGMA credential shows that members are objective financial professionals contributing to the success of businesses. Strategic Three strategic priorities Objectives covered with this joint venture: PEOPLE Maintain pipeline by integrating and capitalizing on student recruitment and programs PROFESSIONAL EXCELLENCE AND PUBLIC INTEREST Enhance the Business & Industry value proposition INTERNATIONAL Create an enhanced and integrated international strategy 1

4 The CGMA credential follows the development model established by the AICPA s National Accreditation Commission (NAC), which voted to recommend the AICPA pursue the joint venture and the credential s creation. The CGMA credential will be the gold standard for promoting and highlighting the work that management accountants do on behalf of businesses, not-for-profits and governments around the world. The CGMA recognizes designees who are objective financial experts, grasping both the intricacies of business and the ability to work as strategic partners with management. In addition, the CGMA may appeal to accountants working in all types of environments, not just those in business, industry and government. For example, AICPA members in public practice with practice management or management accounting experience may consider pursuing the CGMA to highlight their management capabilities to their clients. State CPA Society Participation The AICPA and state CPA societies have a long and unique history of cooperation on behalf of the profession. A discount on the CGMA will be offered to members with dual AICPA/state society memberships. In addition, the AICPA and state CPA societies will explore opportunities for shared CPE and content. New CGMA Associate Category A new member category, CGMA Associate, will provide a means for non-cpas who reside outside the U.S. to join the AICPA upon entering a rigorous course of study to obtain the CGMA. These individuals must remain CGMA associates to continue in their studies and to retain the CGMA credential. This category is non-voting and has the same limitations and privileges of other AICPA Associate member categories. The Science of Management Accounting Management accountants are professionals on the front lines of financial operations at organizations around the world. Day-to-day, management accountants are juggling multiple tasks to keep their organizations moving forward, including: Developing strategy Navigating change and uncertainty Protecting corporate assets Promoting operational efficiency and effectiveness Evaluating risk Managing relationships with stakeholders Management accounting is at the heart of business decision-making. Management accountants have the expertise and strategic perspective to identify critical information needed to effectively assist management in making decisions that enhance the long-term value of their companies. 2

5 Pathways to Designation Qualifying AICPA members will have the most favored pathway for getting the new credential. When the CGMA credential launches in the first quarter of 2012, upon indicating three (3) years of experience, as described below, AICPA voting members will be automatically eligible for the CGMA credential. Until January 1, 2015, AICPA voting members must meet one of the following qualifications to be eligible for the CGMA: Three (3) years of experience working in a financial/management accounting capacity in business industry or government OR two (2) such years plus one (1) year of public accounting experience: Experience must be in the field of financial/management accounting. Those with experience in internal and governmental auditing qualify as well. Personal financial services do not qualify for this purpose. Three (3) years of experience working in a financial/management accounting role on a consulting basis; or Three (3) years of management accounting experience gained by a U.S. CPA whose primary responsibilities are focused on the management and operation of a CPA firm. AICPA Voting Members who work in business, industry, government, not-for-profit and consulting will receive an invitation to obtain the CGMA by verifying they have the required three years of qualifying experience. After January 1, 2015, AICPA voting members with appropriate qualifying experience who seek to obtain the CGMA will also need to complete an assessment in order to be awarded the credential. CGMA Professional Development Resources To support CGMA credential holders as they grow and gain new skills and competencies, the AICPA and CIMA will create a holistic professional development delivery and self-assessment platform, currently referred to as the Virtual Me. The new platform will have a competency self-assessment focus, which helps participants understand the skill sets they need to remain relevant and valued in a rapidly changing business world. This platform will support management accountants in remaining current while also focusing on future trends impacting the organizations to which they contribute their expertise. It will provide value to CGMA credential holders and the marketplace in the following ways, including: Career Pathway Regardless of career level and changing aspirations over time, the competency self-assessment tool will be a key resource to help credential holders target, refine and implement the course of action best suited to meet their objectives. Continuous Improvement The self-assessment tool and associated resources will be a driving, dynamic catalyst for continuous improvement throughout an individual s career, providing them a mechanism to enhance their skills and position themselves for promotion opportunities. Organizational Development Employers looking for ways to define and build internal capabilities to support financial/managerial roles within their organizations may turn to the CGMA professional development platform for a customizable program. This will serve to enhance the positioning of CGMAs while also supporting CPAs and their employers with continuous development and improvement activities. 3

6 The Joint Venture The AICPA/CIMA joint venture is called the Association of International Certified Professional Accountants. The joint venture further advances, promotes and supports the science of management accounting worldwide, while promoting the U.S. CPA as a premier accounting credential. Together, the two organizations create a highly influential alliance that will increase advocacy on behalf of the profession and in the public interest, and create a more powerful voice for all accountants in the global marketplace. Over the years, the AICPA and CIMA have partnered on valuable research and thought leadership papers. The joint venture creates further opportunities to gather the collective global business perspectives of AICPA and CIMA members and present those insights in the form of white papers, case studies, webinars, conferences, tools and publications, and thus help broaden member knowledge. This joint venture, which is not a membership body, is responsible for managing a joint venture brand; creating and supporting the CGMA credential; advocating on behalf of the public and management accountancy on a global scale; and managing the execution of joint operations, where appropriate. Advancing CPAs Worldwide The AICPA/CIMA joint venture also is intended to accelerate awareness and visibility of the U.S. CPA credential in the international marketplace and support the U.S. CPA as the worldwide standard of professional excellence in accounting. In addition, the joint venture will support the awareness of the AICPA/National Association of State Boards of Accountancy (NASBA) project to offer the U.S. CPA exam outside the U.S. beginning in the fall of Through the joint venture agreement, the AICPA and CIMA will work together to promote both the CGMA and the U.S. CPA designation. The U.S. CPA will be promoted alongside the CGMA through existing and future CIMA distribution channels and offices worldwide. Who Is CIMA? Started in 1919, the Chartered Institute of Management Accountants is the largest and one of the most respected international management accounting professional associations, representing more than 183,000 members and students in 168 countries. CIMA s curriculum prepares students and professionals in the business, industry, government and not-for-profit arenas for two accounting credential programs: the Associate of the CIMA (ACMA), for those who have completed a period of qualifying practice of at least three years, passed rigorous qualifying examinations and been recommended by colleagues for CIMA membership; and Fellow (FCMA), for professionals who have further gained appropriate experience in a senior role. CIMA s credential holders will receive the new CGMA credential. CIMA has created strong relationships with employers, universities and high-school level academies and maintains strong visibility in countries such as the United Kingdom, Ireland, India, China, South Africa and Australia. With its international reach, strong commitment to upholding the highest ethical and professional standards and to ensuring public confidence in management accounting, CIMA is the AICPA s ideal partner for the CGMA. Conclusion The AICPA and CIMA, two of the world s largest and most respected professional accountancy bodies, have come together to establish and promote a new, internationally recognized designation for management accounting the CGMA while supporting and growing the U.S. CPA as the worldwide standard of professional excellence in accounting. This groundbreaking joint venture, entitled the Association of International Certified Professional Accountants, will provide the world s employers with the best professional management accounting talent to drive sustainable success. These two world leaders will leverage the collective power of more than 550,000 members to advance the science of management accounting, substantially benefitting the public, members and students. SM 4

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