CIMA and AICPA embark on international management accounting initiative

The Chartered Institute of Management Accountants (CIMA), headquartered in London, and the American Institute of Certified Public Accountants (AICPA), headquartered in New York, have launched a joint venture that would give management accountancy a far higher profile in the United States and promote its development across the world.

The step, which requires ratification from the institutes’ respective governing bodies, would combine the strength of the AICPA in North America with CIMA’s presence in Europe, Middle East, Africa, Asia and elsewhere.

CIMA and AICPA would create a new not-for-profit joint venture to be called the Association of International Certified Professional Accountants. This would promote a new professional accounting designation with new designatory letters which will be announced in due course. Existing CIMA members could retain their current “FCMA” or “ACMA” letters after their names, or alternatively, they would have the option to use these as appropriate in conjunction with the new designation. This joint venture would also promote the US Certified Public Accountant (CPA) qualification as a worldwide standard of professional excellence in public accounting.

The agreement is subject to approval by governing bodies of both organisations and will be voted on separately by both the CIMA and AICPA Councils in May.

George Glass, CIMA President, said: “This agreement would give CIMA and AICPA truly global reach. The new venture would have an unrivalled depth of resources to meet the needs of both organisations and their individual members around the world. We believe that the new qualification designation would prove hugely appealing in mature and emerging markets.”

AICPA Chairman Paul Stahlin said: “We are delighted and fortunate to be able to work with CIMA as an established global partner that brings a wealth of experience and knowledge to this exciting new proposal. If approved, this joint venture promises to create long-term strategic value for our members and the companies they work for.”

Together the new venture will cover 550,000 members and students worldwide. CIMA is the largest professional body in the world focused exclusively on management accounting and the AICPA is the world’s largest professional accounting organisation with members in a wide range of accounting and financial executive roles.

CIMA chief executive Charles Tilley said: “Management accounting is where finance and business meet and helps corporations build more efficient and effective organisations. Management accountants provide the expertise and information that enable organisations to make business-critical decisions. Professionals who earn the new designatory letters will have achieved proficiency and leadership in management accounting.”

AICPA President and chief executive Barry Melancon said: “High-quality management accounting professionals who combine expertise with a deep commitment to ethics and integrity serve the public interest. This joint venture and new designation would recognise professionals around the world committed to excellence in management accounting, enterprise and performance strategy.”

Under the terms of the proposed agreement, the partnership would be reflected in equal decision making through a 50:50 board of directors with CIMA and AICPA rotating the role of chairman and the new joint venture would be 60 percent owned by the AICPA. Charles Tilley and Barry Melancon would each have management roles in both the CIMA and AICPA to ensure coordination.

The pathways for obtaining the new designatory letters would vary.  Recognising the significant educational and professional background of US CPAs, AICPA voting members working in management accounting or a financial management role for three years or more, would qualify for an accelerated route to obtaining the new designation. Non-voting AICPA members would enter a rigorous training programme through their employer or on their own, consistent with that undertaken by other people studying for the CIMA professional qualification and in membership.

Those holding the new designatory letters would commit to an ongoing, self-directed programme of developing and maintaining competency in management accounting as well as leadership and strategy. This knowledge base would be derived from an expert panel assessment of skills and competencies needed to succeed in various career paths in management accounting. This continuous career development model would be based on a contemporary, technology-enabled approach and would focus on competency maintenance versus required hours in coursework.

The new designation would be issued by the joint venture on behalf of the AICPA and CIMA, with the membership remaining with the two existing bodies.