Global Management Accounting Principles

Quality decision making has never been more important – or more difficult. The Global Management Accounting Principles© were created to support you in this new, challenging business era.

Executive Summary


Quality decision making has never been more important – or more difficult.
Competition is relentless, as new innovations and innovators daily disrupt the status quo. The volume and velocity of unstructured data is increasing complexity.
Impulse is taking over insight as organisations struggle to keep pace.
The Global Management Accounting Principles were created for this era of business. Management accounting is at the heart of quality decision making, because it brings to the fore the most relevant information and analysis to generate and preserve value.
The Principles guide best practice. They were prepared by the American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA) – which together represent more than 600,000 members and students in 177 countries. They reflect the perspective of CEOs, CFOs, academics and other professionals contributed during a global consultation across five continents.
There are four principles focused on four outcomes:
Communication provides insight that is influential. Management accounting begins and ends with conversations. The Principles have been designed to help organisations cut through silos and encourage integrated thinking, leading to better decision-making.
Information is relevant. Management accounting makes relevant information available to decisionmakers when they need it. The Principles provide guidance on identifying past, present and future information, including financial and non-financial data from internal and external sources. This iincludes social, environmental and economic data.
Impact on value is analysed. Management accountingconnects the organisation’s strategy to its business model. This Principle helps organisations to simulate different scenarios to understand their impact on generating and preserving value.
Stewardship builds trust. Accountability and scrutiny make the decision-making process more objective. Balancing short-term commercial interests against long run value for stakeholders enhances credibility and trust.
The Principles are intended to be universally applicable to help organisations large and small, public and private extract value from the increasing volume of available information. They are aimed at chief executives, chief financial officers and other members of boards of directors who have oversight of their organisations’ performance. Investors and other stakeholders will also find them useful.
This document details how the four Principles can be applied across 14 key activities of the management accounting function. It also provides guidance about the core competencies required of management accounting professionals to help organisations create, execute and refine their strategies.
The AICPA and CIMA are encouraging widespread adoption of the Global Management Accounting Principles. They would also like users to contribute to the constant refinement of the Principles to maintain their relevance for the future.