Advancing the Science of :

A Joint Venture between AICPA and the Chartered Institute of Management Table of Contents

Background...... 1

The Chartered Global Management Credential...... 1

Pathways to Designation...... 3

CGMA Professional Development Resources...... 3

The Joint Venture...... 4

Conclusion...... 4

Copyright © 2011 American Institute of CPAs Background The Chartered Global Management As partners in advancing the accounting profession, the Accountant Credential American Institute of CPAs (AICPA) and state societies The new credential is called the Chartered Global work to promote and protect the accounting profession, Management Accountant (CGMA). The credential advances addressing its increasing practice diversity and speaking on the science of management accounting, while supporting behalf of all U.S. CPAs and the profession. Consistent with and growing the U.S. CPA as the worldwide standard of that mission, the AICPA explored an opportunity for U.S. professional excellence in accounting. It also recognizes CPAs who work in , industry and government that the unique competencies and expertise of management meets three priorities in the AICPA strategic plan: People, accountants who are leading the world’s most successful Professional Excellence and International. The AICPA and and providing employers with the best state societies recognize their unique responsibility to professional management accounting talent to drive help members understand the issues and opportunities sustainable business outcomes. presented by the increasingly global nature of accounting and business. The CGMA credential demonstrates management accounting expertise in such areas as leading strategically The opportunity, recently and unanimously approved by with management to make more informed decisions; the AICPA’s governing Council, is the creation of a new helping organizations manage change, risk and uncertainty; internationally recognized credential for management protecting corporate ; and promoting operational accounting, called the Chartered Global Management efficiency and effectiveness. Alongside their U.S. CPA Accountant (CGMA), through a joint venture between designation, the CGMA credential shows that members are the AICPA and the Chartered Institute of Management objective financial professionals contributing to the success Accountants (CIMA). of .

StrategicThree strategic priorities Objectives covered with this joint venture: PEOPLE Maintain pipeline by integrating and capitalizing on student recruitment and programs

PROFESSIONAL EXCELLENCE AND PUBLIC INTEREST Enhance the Business & Industry value proposition

INTERNATIONAL Create an enhanced and integrated international strategy

1 The CGMA credential follows the development model New CGMA Associate Category established by the AICPA’s National Accreditation A new member category, CGMA Associate, will provide Commission (NAC), which voted to recommend the AICPA a means for non-CPAs who reside outside the U.S. to join pursue the joint venture and the credential’s creation. The the AICPA upon entering a rigorous course of study to CGMA credential will be the gold standard for promoting obtain the CGMA. These individuals must remain CGMA and highlighting the work that management accountants do associates to continue in their studies and to retain the on behalf of businesses, not-for-profits and governments CGMA credential. This category is non-voting and has the around the world. The CGMA recognizes designees who same limitations and privileges of other AICPA Associate are objective financial experts, grasping both the intricacies member categories. of business and the ability to work as strategic partners with management. In addition, the CGMA may appeal to accountants working in all types of environments, not just those in business, industry and government. For example, AICPA members in public practice with practice management or management accounting experience may consider pursuing the CGMA to highlight their management capabilities to their clients.

State CPA Society Participation The AICPA and state CPA societies have a long and unique The Science of Management Accounting history of cooperation on behalf of the profession. A Management accountants are professionals on the front discount on the CGMA will be offered to members with lines of financial operations at organizations around the dual AICPA/state society memberships. In addition, the world. Day-to-day, management accountants are juggling AICPA and state CPA societies will explore opportunities for multiple tasks to keep their organizations moving forward, shared CPE and content. including:

 Developing strategy

 Navigating change and uncertainty

 Protecting corporate assets

 Promoting operational efficiency and effectiveness

 Evaluating risk

 Managing relationships with stakeholders

Management accounting is at the heart of business decision-making. Management accountants have the expertise and strategic perspective to identify critical information needed to effectively assist management in making decisions that enhance the long-term value of their companies.

2 Pathways to Designation CGMA Professional Qualifying AICPA members will have the most favored Development Resources pathway for getting the new credential. When the To support CGMA credential holders as they grow CGMA credential launches in the first quarter of and gain new skills and competencies, the AICPA and 2012, upon indicating three (3) years of experience, CIMA will create a holistic professional development as described below, AICPA voting members will be delivery and self-assessment platform, currently automatically eligible for the CGMA credential. referred to as the “Virtual Me.” The new platform will have a competency self-assessment focus, which Until January 1, 2015, AICPA voting members must meet one helps participants understand the skill sets they need of the following qualifications to be eligible for the CGMA: to remain relevant and valued in a rapidly changing Three (3) years of experience working in a business world. financial/management accounting capacity in This platform will support management accountants in business industry or government OR two (2) remaining current while also focusing on future trends such years plus one (1) year of public impacting the organizations to which they contribute their accounting experience: expertise. It will provide value to CGMA credential holders • Experience must be in the field of and the marketplace in the following ways, including: financial/management accounting.  Career Pathway – Regardless of career level and Those with experience in internal and changing aspirations over time, the competency governmental auditing qualify as well. self-assessment tool will be a key resource to help • Personal financial services do not qualify for credential holders target, refine and implement the this purpose. course of action best suited to meet their objectives.

 Three (3) years of experience working in a  Continuous Improvement – The self-assessment tool financial/management accounting role on a and associated resources will be a driving, dynamic consulting basis; or catalyst for continuous improvement throughout an individual’s career, providing them a mechanism to  Three (3) years of management accounting enhance their skills and position themselves for experience gained by a U.S. CPA whose promotion opportunities. primary responsibilities are focused on the management and operation of a CPA firm.  Organizational Development – Employers looking for ways to define and build internal capabilities to support AICPA Voting Members who work in business, industry, financial/managerial roles within their organizations may government, not-for- and consulting will receive turn to the CGMA professional development platform an invitation to obtain the CGMA by verifying they have for a customizable program. This will serve to enhance the required three years of qualifying experience. After the positioning of CGMAs while also supporting CPAs January 1, 2015, AICPA voting members with appropriate and their employers with continuous development and qualifying experience who seek to obtain the CGMA improvement activities. will also need to complete an assessment in order to be awarded the credential.

3 The Joint Venture Who Is CIMA? Started in 1919, the Chartered Institute of Management The AICPA/CIMA joint venture is called the Association Accountants is the largest and one of the most respected of International Certified Professional Accountants. The international management accounting professional joint venture further advances, promotes and supports associations, representing more than 183,000 members the science of management accounting worldwide, while and students in 168 countries. CIMA’s curriculum prepares promoting the U.S. CPA as a premier accounting credential. students and professionals in the business, industry, Together, the two organizations create a highly influential government and not-for-profit arenas for two accounting alliance that will increase advocacy on behalf of the credential programs: the Associate of the CIMA (ACMA), for profession and in the public interest, and create a more those who have completed a period of qualifying practice of powerful voice for all accountants in the global marketplace. at least three years, passed rigorous qualifying examinations Over the years, the AICPA and CIMA have partnered on and been recommended by colleagues for CIMA valuable research and thought leadership papers. The membership; and Fellow (FCMA), for professionals who have joint venture creates further opportunities to gather the further gained appropriate experience in a senior role. CIMA’s collective global business perspectives of AICPA and CIMA credential holders will receive the new CGMA credential. members and present those insights in the form of white CIMA has created strong relationships with employers, papers, case studies, webinars, conferences, tools and universities and high-school level academies and maintains publications, and thus help broaden member knowledge. strong visibility in countries such as the United Kingdom, This joint venture, which is not a membership body, is Ireland, India, China, South Africa and Australia. With its responsible for managing a joint venture brand; creating international reach, strong commitment to upholding the and supporting the CGMA credential; advocating on behalf highest ethical and professional standards and to ensuring of the public and management accountancy on a global public confidence in management accounting, CIMA is the scale; and managing the execution of joint operations, AICPA’s ideal partner for the CGMA. where appropriate. Conclusion Advancing CPAs Worldwide The AICPA and CIMA, two of the world’s largest and most The AICPA/CIMA joint venture also is intended to respected professional accountancy bodies, have come accelerate awareness and visibility of the U.S. CPA together to establish and promote a new, internationally credential in the international marketplace and support recognized designation for management accounting—the the U.S. CPA as the worldwide standard of professional CGMA—while supporting and growing the U.S. CPA as excellence in accounting. In addition, the joint venture will the worldwide standard of professional excellence in support the awareness of the AICPA/National Association accounting. This groundbreaking joint venture, entitled of State Boards of Accountancy (NASBA) project to offer the Association of International Certified Professional the U.S. CPA exam outside the U.S. beginning in the fall of Accountants, will provide the world’s employers with the 2011. Through the joint venture agreement, the AICPA and best professional management accounting talent to drive CIMA will work together to promote both the CGMA and sustainable success. These two world leaders will leverage the U.S. CPA designation. The U.S. CPA will be promoted the collective power of more than 550,000 members alongside the CGMA through existing and future CIMA to advance the science of management accounting, distribution channels and offices worldwide. substantially benefitting the public, members and students.

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