The second edition of CIMA's 'Global Principles in Management Accounting' Guide - the updated 'navigation system' for finance professionals in the dynamic business environment

Abstract

The business world is going through a phase of dynamic transformation, which is leading to change and complication of the way of working, business models and customer expectations. On the other hand, technological advances provide opportunities for finance professionals and teams to apply their knowledge, skills and competencies in new areas - adapting artificial intelligence, automating processes and focusing on activities related to the impact of organisations on the environment and society, as well as the quality of corporate governance. With its latest update, the Principles (GMAP - Global Management Accounting Principles) reflect the dynamic changes in the business environment of organizations by focusing on the application of management accounting techniques that support value-driven decision making as well as the performance management process. The focus of management accounting, again, is expanding to non-financial information related to corporate sustainability and its integration into the decision-making process. The purpose of this paper is that, through a review of publications on the subject, to present the genesis and development of the idea of applying global principles to management accounting, and to clarify the key changes through which CIMA is attempting to adapt the Principles to the factors of the new dynamic business environment that have had the greatest impact on organisations over the last decade - the updating of a kind of 'navigation system' in management accounting for financial professionals.