AICPA & CIMA research: Reimagining Performance Management
Recent research by AICPA & CIMA and the World Business Council for Sustainable Development (WBCSD) highlights how businesses need to look beyond traditional ways of managing performance to become more responsive and build resilience, as the economy becomes increasingly digitalised.
The report, Reimagining Performance Management (available at www.cgma.org), identifies seven good practices businesses should implement to drive performance. They are:
- Creating a "one version of the truth" clear line of sight between activities and strategy to help employees develop ownership and accountability.
- Factoring relevant externalities, such as environmental and social impact, into business values and day-to-day decision-making to attract and retain talent.
- Engaging employees with developing and refining business strategies to meet strategic objectives.
- Combining responsibilities for both strategic goals and functional excellence to sharpen performance.
- Improving cooperation and coordination across functional silos to optimise decision-making and resource allocation.
- Aligning incentives with organisational strategy at all levels of the business.
- Connecting external information and internal information with financial outcomes to ensure effective decision-making.
The WBCSD brings together more than 200 businesses that are focused on the transition to a sustainable world. For the research, AICPA & CIMA carried out interviews with finance, HR, and operational leaders at 32 companies including AstraZeneca, Coca-Cola, Diageo, HSBC, Nestlé, Nike, and Unilever. They were followed by a series of roundtables with leaders at 34 companies across the US, UK, South Africa, Singapore, and Brazil.
A second phase of the AICPA & CIMA and WBCSD research will follow in 2022.
Royal Charter, Bye-laws, and Regulations
A new version of the Institute's Royal Charter, Bye-laws, and Regulations came into force on 15 July (see www.cimaglobal.com). This version incorporates changes to Part I.19 of the Regulations to ensure consistency in the requirement to notify CIMA of certain events, such as individual bankruptcy, regardless of where members are located in the world. It also amends a typo contained in Part II.31(b) of the previous version.
Do you need to register as a CIMA Member in Practice?
Are you a self-employed accountant? Do you offer accountancy services directly to clients? If the answer to both these questions is yes, you may be required to register as a CIMA Member in Practice (MiP).
Your application must meet the mandatory requirements (see www.cimaglobal.com) and confirm that the prescribed documents are in place. Details of the mandatory documents are found in CIMA's MiP rules (available at www.cimaglobal.com).
The application is completed online via your MyCIMA account, and when it is approved by the assessing panel, you will be issued a practising certificate.
All members who provide accounting services (as defined in the MiP Regulations) must be registered as a Member In Practice in accordance with Bye-law 8 of the Royal Charter, Bye-laws, and Regulations. Any member who fails to register as a Member in Practice when required to do so or who does not comply with the requirements of the MiP rules can be subject to disciplinary action. Under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (see www.cimaglobal.com), any member who is not registered for anti-money laundering supervision when required is committing a criminal offence.
If you are unsure of your status, please contact email@example.com and the Institute can advise you accordingly. Further information about completing the MiP application and the mandatory requirements can be found on the application and assessment page (available at www.cimaglobal.com) of the MiP rules in the Members' Handbook (available at www.cimaglobal.com) on the CIMAglobal website.
Members in Practice certificate annual renewal
The annual Members in Practice (MiP) renewal period has started and will end on 28 February 2022. To complete your renewal, you will need to log in to your MyCIMA account and go to www.cimaglobal.com.
Renewals that do not include a completed anti-money laundering/counter terrorist funding (AML/CTF) annual return are incomplete, and a practising certificate will not be issued until it is received.
CIMA will not accept renewals submitted after 28 February 2022. This means your MiP status will be lapsed due to noncompliance with Rule 4 of the MiP Rules (available at www.cimaglobal.com). If your status does become lapsed, you will be required to complete a full application after this date.
If you have any queries or would like further guidance, or wish to retire your MiP status, please contact CIMA at firstname.lastname@example.org.
Accounting member bodies make net-zero carbon commitment
Thirteen accounting bodies from across the globe, including the Association of International Certified Professional Accountants, have committed to reach net-zero carbon emissions as soon as possible.
The accounting bodies, which together represent more than 2.5 million professional accountants and students, will publish in the next 12 months their plans for reaching net zero. They will report annually on their progress toward this goal.
As part of The Prince of Wales's Accounting for Sustainability (A4S) project, the accountancy bodies also are committed to provide their members with training, support, and resources to help them create their own net-zero plans and reduce carbon emissions.
The bodies also have pledged to provide advice to help governments develop policies and create the infrastructure necessary for transitions to net-zero economies.
Barry Melancon, CPA, CGMA, the CEO at the Association of International Certified Professional Accountants, representing AICPA & CIMA, said in a news release that it is abundantly clear that to address environmental risks and achieve climate-goal ambitions, accounting organisations must work together and lead the profession by example.
"Public and management accountants have an important role to play improving an organisation's integrated thinking and decision-making capabilities to promote responsible and sustainable business practices," Melancon said. "They have the necessary skills and expertise to help effect meaningful change in this area. As an organisation, we are fully committed to doing our part and will continue to help our members, their organisations, and their clients across the globe support this mission."
In addition to the Association, the following bodies have made the net-zero commitment: AAT, ACCA, Chartered Accountants Australia and New Zealand, Chartered Accountants Ireland, Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili, CPA Australia, CPA Canada, ICAEW, ICAS, Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW), Regnskap Norge, and the Japanese Institute of Certified Public Accountants (JICPA).
Institute Plaque for services to CIMA
Stephanie Clackworthy, FCMA, CGMA, has been awarded the Institute Plaque for her services to CIMA. Between 2008 and 2017 she was South East England Area chair and a CIMA Council member, serving on several committees including Lifelong Learning and the CGMA Examination Board.
CIMA member appointed as UK foreign secretary
Liz Truss, ACMA, CGMA, was appointed Secretary of State for Foreign, Commonwealth, and Development Affairs in the UK government in a mid-September reshuffle, with a continuing role as Minister for Women and Equalities. Her earlier government appointments include as Lord Chancellor and Secretary of State for Justice, and Chief Secretary to the Treasury. Truss worked in the energy and telecommunications industries as a commercial manager and economics director before entering Parliament.