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.
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By GlobalDataInternational 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.
