Groups join hands to push management accounting | Bangkok Post: business

FINANCE

KUALA LUMPUR : While the global financial crisis has brought on unprecedented challenges for companies, management accountants, with their depth of understanding of businesses, can help them overcome their troubles and create long-term sustainability, said Charles Tilley, chief executive of the Chartered Institute of Management Accountants (CIMA).

The American Institute of Certified Public Accountants (AICPA) and CIMA, two of the world's recognised accounting bodies, have formed a joint venture to establish the Chartered Global Management Accountant (CGMA) in a bid to develop the profession of management accounting.

Management accounting is the process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day, short-term decisions. Unlike financial accounting, management accounting generates monthly or weekly reports such as the amount of available cash, sales revenue generated, amount of orders in hand, etc, for management to make forward-looking decisions.