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FRC response to Global Management Accounting Principles
Mr Charles Tilley Chief Executive Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP
9 May 2014
Dear Charles
Response to Global Management Accounting Principles
Thank you for giving us the opportunity to comment on the draft Global Management Accounting Principles. We fully support your objective of creating a consistent set of principles for management accountants globally.
We also agree on the areas which you have adopted as principles, although we feel that the headline language on each could be more specific and outcome focussed. For example, communicating with impact does not convey a message about the integrity of the communication. Maybe something like “Communication should be clear, accurate and relevant" would be better.
We understand that the Principles are best practice, not part of an enforcement regime. We feel, however, that it should be clear how the paper relates to IFAC's code of ethics as adopted by CIMA.
We were not sure to what extent those in smaller business are part of the audience for the paper. It certainly would have general applicability but, if that is intended, we suggest that either parts of it are simplified or a small company version is produced.
There is one reference to the principles being combined with competencies in the CIMA syllabus. We welcome this and suggest the linkages to the syllabus might be set out in more detail. You might also consider reviewing and developing the syllabus and training requirement to ensure they reflect the principles fully. I also think there should be reference to the AICPA syllabus or the type of experience their members should have gained to achieve the CGMA designation.
I should be happy to discuss any of the above with you if that would be helpful. In addition we have some drafting points that Marian Williams will send to your team.
We normally put our consultation responses on our website and plan to do that with this letter.
Yours sincerely
Stephen Haddrill CEO Financial Reporting Council DDI: 020 7492 2390 Email: [email protected]
Aldwych House, 71-91 Aldwych, London WC2B 4HN Tel: +44 (0)20 7492 2300 Fax: +44 (0)20 7492 2399 www.frc.org.uk The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered office: as above.