AICPA NATIONAL ISSUES

AICPA Goes Global, Joining with CIMA to Create International Management Accounting Designation

The approval of a joint venture between the American Institute of Certified Public Accountants (AICPA) and the London-based Chartered Institute of Management Accountants (CIMA) – designed to give management accountancy a higher profile in the United States.

All while promoting the professional development of management accountants throughout the world and advancing the U.S. CPAs as a worldwide standard of professional excellence in accounting. This is being universally applauded as a boon for members of both organizations. With the agreement, the 350,000 members of the AICPA in the United States have effectively gone global.   

The venture combines the strength of the AICPA in North America with CIMA’s presence in Europe, the Middle East, Africa, Asia and elsewhere. As a result, the organizations have created a new not-for-profit venture that will promote a new, globally recognized management accounting designation. 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. Together, the new venture encompasses more than 550,000 members and students worldwide.    

Creating such a designation has been a primary goal of the AICPA for several years. To have reached that goal by joining forces with CIMA is being hailed as the proverbial home run.  

“We wanted to partner with an organization with a great reputation -- one with great ethics,” said Carol Scott, Vice President of business, industry and government for the AICPA. “At the end of the day, it was clear that CIMA was the right partner.”

Scott explained that those professionals in corporate finance – approximately 45 percent of AICPA’s membership – needed to have a “unique recognition for their specific skill set.”

“We wanted to establish an accounting credential that would show their value to a corporation beyond that of their CPA,” she said.

Under the terms of the proposed agreement, the AICPA will hold a 60 percent ownership of the new venture. It will have equal decision-making through a 50-50 board of directors. CIMA and AICPA will rotate the role of chairman.

Methods of obtaining the new designation will 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 qualify for an accelerated route to obtaining the new designation. Non-voting AICPA members in the United States are not eligible to obtain the credential. Those holding the new designation will have committed to an ongoing, self-directed program of developing and maintaining competency in management accounting as well as leadership and strategy. The knowledge base would be derived from an expert-panel assessment of skills and competencies needed to succeed in various career paths in management accounting.

The new designation will be issued by the joint venture on behalf of the AICPA and CIMA. In the Americas, outside the United States, non-U.S. CPAs can obtain the new designation as AICPA international associates after a rigorous assessment process.

Scott believes that the significance of the new designation cannot be overstated. In fact, she said, one can draw a direct correlation between the strength of management accounting and the very health of an economy.

“Strong accounting makes strong companies, which make strong economies” said Scott. “We wanted to help our members help their companies. Through this, we are working in the public interest.”

The business and industry executive committee of the AICPA has been looking into establishing such a designation for several years and that the organization chose to align with CIMA should come as no surprise. For a decade, the two organizations have been jointly writing position papers. An enormous respect for one another has long been established.

Jim Morrison, chief financial officer at the Pawtucket-based Teknor Apex, is a member of the AICPA and RISCPA.  He is a member of the AICPA business and industry executive committee. Like Scott, Morrison sees the management accounting sector in corporate finance as one whose members have earned the opportunity to pursue an advanced designation.

“As management accountants, we analyze every facet of an enterprise,” he said. “We support the business decisions of the company.”

The new designation, he said, is an invaluable benefit for the professional organizations to offer their members.

“This broadens the perspective of management accounting,” said Morrison. “With this one giant step we are now global. We have a huge footprint.”    

Click here to view a presentation outlining the goals for creating CGMA and the AICPA/CIMA joint venture.