World’s first management accounting standard is published
21 March 2015
BSI, the business standards company, has published PAS 1919:2016 Guide to management accounting principles. The guide which was sponsored by CIMA (Chartered Institute of Management Accountants) also saw collaborative input from such organizations as Environment Agency, Fujitsu, NHS and Siemens.
Designed as a best-practice guide to management accounting, defining what “good” looks like, PAS 1919 provides organizations with a framework to support their decision making and contribute to overall improved performance and sustained success.
David Fatscher, Head of Market Development for Sustainability and Services at BSI said: “CFOs have much more reporting responsibility than they once did and the management accounting function is now an integral part of an organizations strategic planning. PAS 1919 outlines the key principles and activities they have to deliver on to assure stakeholders of sustainable business performance.”
The PAS sets out four outcome-based management accounting principles, and provides a basis on which organizations can set their own benchmarks for the management accounting function.
- Communication provides insight that is influential – encouraging insightfulcommunication that drives better decisions across an organization
- Information is relevant – reviewing past, present and forward looking performance management information
- Impact on value is analysed – understanding an organization’s strategy and business model
- Stewardship builds trust – balancing short-term commercial interests against long term value for stakeholders
Tony Manwaring, CIMA’s Executive Director, External Affairs, said: “This sets the standard for decision making around the world. The content of PAS 1919 represents best practice management accounting and enables organizations to take decisions that drive value in the short, medium and long-term.”
This PAS is for use by large, small, public, private, local and international organizations and investors or other stakeholders. Some of the other organizations involved in the development of PAS 1919 includes: Cummins, Hymns Ancient & Modern Ltd., International Federation of Accountants (IFAC), Johnson Electric, Mevis Medical Solutions AG, Pentland Brands, Royal Botanic Garden Edinburgh and Sky plc.