Cost Accountants in the US are going to have a Certification thrust upon them that was developed by CPA’s in the US and Management Accountants in the UK. The Management Accounting Framework developed for the CGMA is set to become the international standard in 2015. Is this meant to displace existing cost accountants to be replaced by CPA’s, or is it simply meant as an income raising device for the AICPA.
If you are a cost accountant in the US, you need to make your voice heard now, read the Framework and join the Society of Cost Management today! There is still no cost to join, and it may be critical to your employment status.
The American Institute of Certified Public Accountants (AICPA), and Chartered Institute of Management Accountants (CIMA) formed a partnership in 2011 to offer the Certified Global Management Accountant Designation. The 2 800 lb. gorillas of accounting organizations from the US and Europe getting together to offer a certification is significant.
Since January 31, 2012, AICPA has been offering the CGMA to current holders of the CPA designation for a fee of $150/year, no education requirement, and 3 years of experience. Many CPA’s have taken the bait and become CGMA’s. How many are actually cost accountants, probably very few, as cost accountants generally do not hold the CPA designation.
Just a few days ago, CIMA and the AICPA launched a new Global Management Accounting Principles Framework, that is now available for comment. Not really new because it is based on the revised requirements for the CIMA, but will become an international framework for Management Accounting. CIMA has maintained close ties with organizations in countries that were former British colonies; Australia, Canada, parts of Africa, India, and per the press release, their framework will be applied in 177 countries. There are several Management Accounting organizations around the globe and CIMA has alliances with about half of them.
This places the Institute of Management Accountants and their CMA certification in a predicament, this competing certification and its holders do not have a cross licensing agreement with CIMA, and AICPA and CIMA have far more muscle than the IMA. It also leaves the IMA’s Conceptual Framework for Managerial Costing as a no starter.