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Tuesday, 20 September 2016 00:06 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
A landmark agreement was signed yesterday between two of the country’s leading accounting professional bodies, Chartered Institute of Management Accountants (CIMA) and Chartered Accountants of Sri Lanka (CA Sri Lanka), to promote the CIMA qualification amongst Chartered Accountants and students.
In addition this agreement will endorse and promote Global Management Accounting Principles, with CIMA and CA Sri Lanka working together to develop a national plan for the adoption of these principles.
Both institutions will also mutually identify and support their respective technical agendas and projects as well as efforts of integrated reporting.
As a part of this agreement, CA members who have five years of professional experience (as long as they fulfil the minimum 
requirement to the CIMA practical experience requirement to obtaining membership) can become Chartered Global Management Accountant (CGMA) designation holders through the completion of CIMA’s Strategic Case Study Exam.
The CGMA designation has been introduced by CIMA and their joint venture partner, the American Institute of CPAs (AICPA) and is the global designation for management accountants.
The MOA also encompasses CA members with less than five years of professional experience, who need to successfully complete the P3 assessment of the Strategic level together with the Case Study exam to become CGMAs; while students who have completed all CA Sri Lanka knowledge skills and assessments can become CGMAs via the Strategic level by attempting the last four assessments along with a minimum of five years of work experience.
Commenting on this historic event, CIMA President Andrew Miskin pointed out that they have together with AICPA put together CGMA designation to try and set up the standards for management accountancy around the world.
He emphasised on the importance of identifying and understanding the key factors that creates value to be ahead of the ever-changing to understand what creates value.
“The ever increasing pace of change in technology, culture is making a big difference to what we management accountants do in business — that’s why we need to always be ahead of the game. Although it is a well-known fact that years ago market capitalisation of organisations were represented by the balance sheet, it now less than 20%. Thus, we really have to study what value is and markets as a crucial part in integrated thinking and integrated report accounting.”
Miskin also revealed that from 1 January next year the Association of International Certified Professional Accountants will be formed. It will have both public and management accounting. The Association results from the vote of CIMA and AICPA members, in June this year to join forces to create a new association representing the breadth of the accounting profession.
Noting there are around 6,000 Chartered Accountants in Sri Lanka at present he asserted it was a real privilege for CIMA to be a part of creating this alignment with CA Sri Lanka. “Public accounting is assuring capital markets and taxation systems which is a vital part of economic growth of any country, while those in the management accounting helps in decision making support and create value. We are sisters in the same profession same professions with a different focus. So, we in management accounting are very pleased and proud to join with other professional bodies and obviously to part of that family in creating value.”
CIMA at present has just over quarter of million members and students around the world and together with the AICPA it represents more than 600,000 professionals, he added.
CA Sri Lanka President Lasantha Wickremasinghe said as the two leading accounting bodies in the country, CIMA and CA Sri Lanka take great pride in their standing at a local and international level.
“Although we offer separate qualifications, our ultimate goal is one, which is to take both the accounting profession and our members to greater heights. Our agreement with CIMA today will renewing this one time old practice, and we are very proud to partner with CIMA, in our continuing efforts to enhance the standing of our members both at a local and global level,” he stressed.
He pointed out that over the years both institutes have shared very strong ties, and especially during the early years since they we began to offer the CA qualification almost customary for CIMA members to obtain the CA qualification and the CA Members to obtain the CIMA qualification, with a view to enhance skills and competencies of the members of both institutes, who even today continue to lead boardrooms in Sri Lanka.
“Although we are a local body with a global outlook, international acceptance is paramount for our continued sustenance in the global arena. We already have an exemption scheme which allows CIMA members to fast track towards a CA qualification with a range of exemptions. I believe, this agreement is important as it will enhance the standing and demand of our members further in the world of business and finance,” he noted.
Wickremasinghe highlighted that Sri Lanka was the first country in Asia to launch the Integrated Reporting Council under the guidance of the International Integrated Reporting Council. “In our efforts to strengthen the value and sustainability of corporates, we have taken the lead towards systematically implementing integrated reporting in Sri Lanka. For this important initiative we have brought together professionals from the accounting and non-accounting sectors, regulators and academics as well as accounting bodies such as CIMA to play an important role in helping this implementation process.”
As the national accounting body, CA Sri Lanka work closely with the Government and the regulatory authorities in its combined efforts to enhance the financial landscape of the country, while also working to ensure country’s accounting framework is world class.
Noting accounting is not a stagnant profession and members are expected to remain relevant and be knowledgeable on the local and global trends, regulations and other changes he said: “With Sri Lanka at the threshold of renewed development, we as accountants have an important and responsible role to play in helping our nation achieve its growth objectives. Accountants are known as the gatekeepers and therefore internationally accepted accounting principles are important as it will reflect very positively on our country.”
