The Chartered Global Management Accountant (CGMA) designation was launched today in a simultaneous event in London and New York.
CGMA is the result of a joint venture between the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA) in an effort to produce a ‘gold standard’ designation for management accounting globally.
On the back of the launch the pair released their first joint report, Rebooting Business: Valuing the Human Dimension, in an effort to highlight the importance of the role of the management accountant in today’s business world and the role they can play in helping companies to move from mere financial reporting to one that provides investors with information such as customers’ and employee satisfaction or environmental sustainability.
Panellists in the US and UK both stressed the urgent need to unlock the value of human dimension and of long term decision making, putting aside the contingency of financial markets’ time-table.
“We need to focus on long-term goals and on long-term results, but investors are not interested in this and this has to change,” CIMA chief executive Charles Tilly said.
“The focus on short term results and on corporate results is always going to be there, but accountants need to show and explain that there’s a bigger picture,” Otis Elevator Company chief financial officer Angelo Messina said.
International Integrated Reporting Committee chief executive Paul Druckman posed the question: if the current corporate reporting is not fit for purpose then is integrated reporting the way forward?
Xerox Corporation chief accountant Gary Kabureck agreed it is and should continue to be explored as a natural evolution to reporting.
“This type of reporting is already coming. It is inevitable that all this information is going to be put all together in one packet,” Kabureck said.
Are social networks the new tools of reporting?
The issue of transparency was also addressed in the report with the majority of panellists agreeing that the business world needs to be transparent in order to progress.
KPMG chairman John Griffith-Jones, intervening from the public, said social networks have already changed the way of dealing with it: “I am aware that what the world knows about my firm is not entirely in my hands [as a chairman]: if something happens employees can tweet it or put on Facebook and everything goes viral”.
For this reason Griffith-Jones added the attitude of the business world towards transparency “will have to ease up”.
“Maybe we chief executives will have to start rethinking what is secret and what isn’t,” he concluded.