Can anyone explain the four Global management accounting principles that was released by AICPA and CIMA?

The purpose of the Principles is to support organisations in benchmarking and improving their management accounting systems. The Principles help the public and private sectors make better decisions, respond appropriately to the risks they face and protect the value they generate.

There are four Principles:  

- Communication provides insight that is influential   

- Information is relevant   

- Impact on value is analysed  

- Stewardship builds trust

fective management accounting practices can improve decision-making in organizations through, among other things, future-focused insight and analysis. But, according to the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA), management accounting has lacked the same level of guidance as financial accounting to ensure that these practices are consistently used worldwide.

So, the AICPA and the CIMA last month released four global management accounting principles that they say can be “universally applied in organizations large and small, public and private, anywhere in the world.” By using the new guidance, organizations can make better decisions, respond appropriately to the risks they face, and protect the value they generate, according to the two accounting groups.

The AICPA and the CIMA developed the four principles with input from CEOs, CFOs, academics, regulators, and other professionals in 20 countries on five continents during a public consultation this year.