Advancing the Science of

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

Background.................................................................................................... 1

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

Pathways to Designation................................................................................ 3

CGMA Professional Development Resources................................................ 3

The Joint Venture........................................................................................... 4

Conclusion...................................................................................................... 4

Copyright © 2011 American Institute of CPAs

Background
As partners in advancing the accounting profession, the
American Institute of CPAs (AICPA) and state societies
work to promote and protect the accounting profession,
addressing its increasing practice diversity and speaking on
behalf of all U.S. CPAs and the profession. Consistent with
that mission, the AICPA explored an opportunity for U.S.
CPAs who work in business, industry and government that
meets three priorities in the AICPA strategic plan: People,
Professional Excellence and International. The AICPA and
state societies recognize their unique responsibility to
help members understand the issues and opportunities
presented by the increasingly global nature of accounting
and business.
The opportunity, recently and unanimously approved by
the AICPA’s governing Council, is the creation of a new
internationally recognized credential for management
accounting, called the Chartered Global Management
Accountant (CGMA), through a joint venture between
the AICPA and the Chartered Institute of Management
Accountants (CIMA).
Strategic Objectives
Three strategic priorities 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
The Chartered Global Management
Accountant Credential
The new credential is called the Chartered Global
Management Accountant (CGMA). The credential advances
the science of management accounting, while supporting
and growing the U.S. CPA as the worldwide standard of
professional excellence in accounting. It also recognizes
the unique competencies and expertise of management
accountants who are leading the world’s most successful
organizations and providing employers with the best
professional management accounting talent to drive
sustainable business outcomes.
The CGMA credential demonstrates management
accounting expertise in such areas as leading strategically
with management to make more informed decisions;
helping organizations manage change, risk and uncertainty;
protecting corporate assets; and promoting operational
efficiency and effectiveness. Alongside their U.S. CPA
designation, the CGMA credential shows that members are
objective financial professionals contributing to the success
of businesses.
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The CGMA credential follows the development model
established by the AICPA’s National Accreditation
Commission (NAC), which voted to recommend the AICPA
pursue the joint venture and the credential’s creation. The
CGMA credential will be the gold standard for promoting
and highlighting the work that management accountants do
on behalf of businesses, not-for-profits and governments
around the world. The CGMA recognizes designees who
are objective financial experts, grasping both the intricacies
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
history of cooperation on behalf of the profession. A
discount on the CGMA will be offered to members with
dual AICPA/state society memberships. In addition, the
AICPA and state CPA societies will explore opportunities for
shared CPE and content.
2
New CGMA Associate Category
A new member category, CGMA Associate, will provide
a means for non-CPAs who reside outside the U.S. to join
the AICPA upon entering a rigorous course of study to
obtain the CGMA. These individuals must remain CGMA
associates to continue in their studies and to retain the
CGMA credential. This category is non-voting and has the
same limitations and privileges of other AICPA Associate
member categories.
The Science of Management Accounting
Management accountants are professionals on the front
lines of financial operations at organizations around the
world. Day-to-day, management accountants are juggling
multiple tasks to keep their organizations moving forward,
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.
Pathways to Designation
Qualifying AICPA members will have the most favored
pathway for getting the new credential. When the
CGMA credential launches in the first quarter of
2012, upon indicating three (3) years of experience,
as described below, AICPA voting members will be
automatically eligible for the CGMA credential.
Until January 1, 2015, AICPA voting members must meet one
of the following qualifications to be eligible for the CGMA:
Three (3) years of experience working in a
financial/management accounting capacity in
business industry or government OR two (2)
such years plus one (1) year of public
accounting experience:
• Experience must be in the field of
financial/management accounting.
Those with experience in internal and
governmental auditing qualify as well.
• Personal financial services do not qualify for
this purpose.
Three (3) years of experience working in a
financial/management accounting role on a
consulting basis; or
Three (3) years of management accounting
experience gained by a U.S. CPA whose
primary responsibilities are focused on the
management and operation of a CPA firm.
AICPA Voting Members who work in business, industry,
government, not-for-profit and consulting will receive
an invitation to obtain the CGMA by verifying they have
the required three years of qualifying experience. After
January 1, 2015, AICPA voting members with appropriate
qualifying experience who seek to obtain the CGMA
will also need to complete an assessment in order to be
awarded the credential.
CGMA Professional
Development Resources
To support CGMA credential holders as they grow
and gain new skills and competencies, the AICPA and
CIMA will create a holistic professional development
delivery and self-assessment platform, currently
referred to as the “Virtual Me.” The new platform
will have a competency self-assessment focus, which
helps participants understand the skill sets they need
to remain relevant and valued in a rapidly changing
business world.
This platform will support management accountants in
remaining current while also focusing on future trends
impacting the organizations to which they contribute their
expertise. It will provide value to CGMA credential holders
and the marketplace in the following ways, including:
Career Pathway – Regardless of career level and
changing aspirations over time, the competency
self-assessment tool will be a key resource to help
credential holders target, refine and implement the
course of action best suited to meet their objectives.
Continuous Improvement – The self-assessment tool
and associated resources will be a driving, dynamic
catalyst for continuous improvement throughout an
individual’s career, providing them a mechanism to
enhance their skills and position themselves for
promotion opportunities.
Organizational Development – Employers looking for
ways to define and build internal capabilities to support
financial/managerial roles within their organizations may
turn to the CGMA professional development platform
for a customizable program. This will serve to enhance
the positioning of CGMAs while also supporting CPAs
and their employers with continuous development and
improvement activities.
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The Joint Venture
The AICPA/CIMA joint venture is called the Association
of International Certified Professional Accountants. The
joint venture further advances, promotes and supports
the science of management accounting worldwide, while
promoting the U.S. CPA as a premier accounting credential.
Together, the two organizations create a highly influential
alliance that will increase advocacy on behalf of the
profession and in the public interest, and create a more
powerful voice for all accountants in the global marketplace.
Over the years, the AICPA and CIMA have partnered on
valuable research and thought leadership papers. The
joint venture creates further opportunities to gather the
collective global business perspectives of AICPA and CIMA
members and present those insights in the form of white
papers, case studies, webinars, conferences, tools and
publications, and thus help broaden member knowledge.
This joint venture, which is not a membership body, is
responsible for managing a joint venture brand; creating
and supporting the CGMA credential; advocating on behalf
of the public and management accountancy on a global
scale; and managing the execution of joint operations,
where appropriate.
Advancing CPAs Worldwide
The AICPA/CIMA joint venture also is intended to
accelerate awareness and visibility of the U.S. CPA
credential in the international marketplace and support
the U.S. CPA as the worldwide standard of professional
excellence in accounting. In addition, the joint venture will
support the awareness of the AICPA/National Association
of State Boards of Accountancy (NASBA) project to offer
the U.S. CPA exam outside the U.S. beginning in the fall of
2011. Through the joint venture agreement, the AICPA and
CIMA will work together to promote both the CGMA and
the U.S. CPA designation. The U.S. CPA will be promoted
alongside the CGMA through existing and future CIMA
distribution channels and offices worldwide.
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Who Is CIMA?
Started in 1919, the Chartered Institute of Management
Accountants is the largest and one of the most respected
international management accounting professional
associations, representing more than 183,000 members
and students in 168 countries. CIMA’s curriculum prepares
students and professionals in the business, industry,
government and not-for-profit arenas for two accounting
credential programs: the Associate of the CIMA (ACMA), for
those who have completed a period of qualifying practice of
at least three years, passed rigorous qualifying examinations
and been recommended by colleagues for CIMA
membership; and Fellow (FCMA), for professionals who have
further gained appropriate experience in a senior role. CIMA’s
credential holders will receive the new CGMA credential.
CIMA has created strong relationships with employers,
universities and high-school level academies and maintains
strong visibility in countries such as the United Kingdom,
Ireland, India, China, South Africa and Australia. With its
international reach, strong commitment to upholding the
highest ethical and professional standards and to ensuring
public confidence in management accounting, CIMA is the
AICPA’s ideal partner for the CGMA.
Conclusion
The AICPA and CIMA, two of the world’s largest and most
respected professional accountancy bodies, have come
together to establish and promote a new, internationally
recognized designation for management accounting—the
CGMA—while supporting and growing the U.S. CPA as
the worldwide standard of professional excellence in
accounting. This groundbreaking joint venture, entitled
the Association of International Certified Professional
Accountants, will provide the world’s employers with the
best professional management accounting talent to drive
sustainable success. These two world leaders will leverage
the collective power of more than 550,000 members
to advance the science of management accounting,
substantially benefitting the public, members and students.
SM
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