Kenneth Ashe Receives Chartered Global Management Accountant Designation

Kenneth Ashe, director of the financial reports of Prudential Financial, received the Chartered Global Management Accountant (CGMA) of the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants.

Kenneth Ashe, director of the financial reports of Prudential Financial, received the Chartered Global Management Accountant (CGMA) of the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants. CGMA designation recognizes professionals with deep understanding of the skills of finance and business has expanded its expertise in the management accountants to help them achieve better business decisions.

"I am honored to receive the CGMA designation and delighted that the accounting profession recognizes that management accountants bring value to organizations," Ashe Said. "This designation represents a commitment to higher education, ethics and professional development that are essential for professional success."

Ashe spent 10 years in management and accounting 4 large Fortune 500 companies, including Standard and Poor, EY and Prudential Financial. Ashe holds a Bachelor of Science in Accounting and a Masters in Accounting with specialization in corporate finance at the Weatherhead School of Management at Case Western Reserve University.

Ashe, Certified Public Accountant (CPA) and Project Management Professional (PMP), a member of the American Institute of Certified Public Accountants, the Institute of Project Management, Mensa and Toastmasters International.

ACCA and IMA See Role for Accountants in Integrated Reporting

The Association of Chartered Certified Accountants and the Institute of Management Accountants issued a new report on how accountants can play a key role in the transition to integrated presentation of reports.

The report, "From Shared Value Share Value: Analysis of the role of accounting in the development of integrated reports in practice," examines the recent movement in Europe reports integrated into these reports in particular. both companies explained their own financial performance and the social and economic impact they make.

Integrated, or IR, reporting is defined as a concise communication about the strategy, governance, performance and prospects of the company, in the context of its external environment, leading to the creation of value in the short, medium and long term.

The report explains how accountants can help identify areas for improvement and development of solutions. The implementation of new accounting methods requires careful design guidelines and processes, and accountants can play an important role in the development of the composite report.

"I think the adoption of the IR will not reach its full potential, including the United States, unless, as the accounting community, we took several steps to lay the groundwork for a transformation of external corporate reporting," said IMA VP Raef Lawson research and policy in a statement.

CFO can be IR project managers in their companies, while accountants, management accountants and auditors have an important role to play in developing the right to recognition of capital, systems right information and the right insurance for reported information, according to the report.

"The role of accounting in the execution of IR are paramount. CFO can be project leaders IR within their companies," said Faye Chua, director of corporate vision of ACCA. "Accountants, management accountants, and auditors have an important role to play in the development of law recognizing the right of capital information systems, and insurance law of reported information."

Updated Certification In Business Accounting

KUALA LUMPUR: The Chartered Institute of Management Accountants (CIMA) has launched an updated CIME accounting certificate (Cert BA), whose assessments as part of the update program will start in January 2017.

In a statement, the largest professional organization of management accountants in the world says the update consolidates four of five subjects in existing programs.

"The previous business math autonomous subject is now integrated into other subjects, allowing contextual practical application of mathematics.

"The full content of the program was revised and updated after thorough global industry and research in education, ensure its current and relevant," he added.

Executive Director of CIMA Education, Noel Tagoe said Cert BA was designed to bring people and successful businesses by developing skills and unlock talents.

"The update Cert BA is based on extensive research and consultation with employers and educators around the world, ensuring that the program continues to reflect the new challenges facing companies and satisfies their need for qualified professionals committed and specialized, "he added.

Previously, CIMA has introduced a computerized and updated content classification for professional qualification based on rigorous research and the Chartered Global Management Accountant World (AMG) newly created CIMA competency framework.

While the update Cert BA is an independent rating also continues to serve as a prerequisite for professional qualification.

CIMA also said the update now Cert BA more strongly aligned with the professional qualification by integrating the framework CGMA skills and integration of the "three pillars of learning" structure.

CIMA’s Vision For Management Accounting

AICPA and CIMA expand lifelong learning site with competencies in accounting and auditing

AICPA and CIMA expand lifelong learning site with competencies in accounting and auditing:

The Institute of CPA and Charter of Management Accountants (CIMA) announced today that they have expanded their learning and development of professional web sites to include skills in accounting and financial reporting, including insurance, as part of a larger effort to increasing lifelong learning in the accounting profession.
The site AICPA, CIMA and learning skills launched earlier this year to help Chartered Management Accountant World (CGMA®) designation holders to broaden their skills and build rewarding careers.

In recent months, the site was expanded to include other categories of skills such as auditing employee benefit plan, the government audit and - today - accounting and auditing. Other subject areas will be added in the coming months.

With the addition of the new accounting framework and on-site audit, accountants are now able to analyze where they may have a lack of knowledge and obtain instant personalized recommendations on various learning resources to control this area. The new framework has been developed by some of the best experts in the industry.

"Vocational training is not the quantity of time you spend on a computer or how long you sit through a presentation," said Clar Rosso, vice president of learning and competence AICPA members, in a statement. "This is the acquisition of knowledge and experience that you can and take your career to the next level. That is why an approach to skills development makes sense."

A new feature on the site called "verification of knowledge" gives multiple choice questions on specific topics, with a wrong answer activate links to learning resources on this topic AICPA. In addition, professionals can find nearby conferences leveraging location-based searches. The site is also free and easy mobile.

Cima P2 Exam Question 32

Question No 32:

KL is a transport company that has recently won a five-year government contract to provide rail transport services. The company appointed a new Director to take responsibility for the government contract. She has worked in various positions in other rail transport companies for a number of years. She has put together a team of managers by recruiting some of her former colleagues and some of KL’s current managers.

The contract stipulates that the company should prepare detailed budgets for its first year of operations to show how it intends to meet the various operating targets that are stated in the contract. The new Director is undecided about whether she should prepare the budgets herself or whether she should involve her management team, including the newly recruited managers, in the process.

Required:
Produce a report, addressed to the new Director, that discusses participative budgeting.

Note: your report must

A) Explain TWO potential benefits and TWO potential disadvantages of involving the new and existing managers in the budget setting process.

B) Provide a recommendation to the new Director.

(10 marks)

Answer:

A)An original budget is determined by predicting the expected level of activity and using standard costs to determine the expected variable cost for that level of activity. To this would then be added the expected fixed cost.
Standard costs are based on estimated resource requirements and the expected price of those resources for each unit. These values are then multiplied by the expected activity level to determine the expected variable cost of that level of activity.
Budgets are a statement of the total costs, revenues and resource requirements expected for the budgeted level of activity. It is this budget that is approved by the Board of Directors and used as the basis of comparison with actual results. However, it is most likely that the actual level of activity will differ from that budgeted. In such circumstances a simple comparison between the actual results and the original budget would be both meaningless and unfair because some of the costs and the revenues vary with the level of activity. In order to make a fair comparison flexible budgeting must be used.
Flexible budgeting recognises that, within the original budget, there are some costs and revenues that are affected by the level of activity (variable) and others that are not affected by activity levels (fixed). Using this analysis it is possible to produce a flexible budget showing the expected costs and revenues of the actual activity level. This can then be compared with the actual costs and the differences (variances) used as a measure of performance.

B)In order to fairly measure performance actual activity must be compared with the original budget to understand why the actual activity level differed from those budgeted; and actual costs and revenues should be compared with the flexible budget to fairly measure the actual costs and revenues against those expected for the actual activity achieved. Thus it is important to understand the appropriate uses of each of the original and flexed budget and how standard costs are used to compile the original budget and assist in the preparation of the flexed budget for cost comparison purposes.

Tilley: CIMA focus will remain despite new global association

A new association officially holder assembly CIMA and AICPA American Institute not dilute their brands, CIMA CEO Charles Tilley (pictured) has claimed.

In announcing its plans to launch a new partnership next year Accounting Age Tilley said he would seek to better use of resources to promote their joint nomination CGMA.

"It's not the end of them," Tilley said. "We will continue to promote management accounting, strengthening [the offer] for employers, strengthening our research and development are maintaining our objective of MA and the Royal Charter .."

CIMA and the AICPA have worked together since 2012, providing a description of the global management accounting (CGMA) to the appropriate members. The move caused some controversy with a former president of CIMA describing the joint venture foam "marketing". The initial risk has not been put before the members for a vote.

However, the two bodies are clearly very happy with his progress to take another step forward. The association, which is currently unnamed, will allow the structure and better aligned resources to further promote CGMA designation. "This will allow the partnership in action worldwide," Tilley said. "This is the expansion of our global presence."

A consultation will be launched very soon the founding members of CIMA before the decision is put to a vote at the General Meeting of April 2016. If approved, the new partnership, which will be owned 50/50 between the two bodies created in June

There are currently 150,000 accounting management represented by the CGMA designation between the two organizations. The company has seen the introduction of the principles of comprehensive management accounting, reflecting how to deal with the main risks facing accountants and values ​​that must be respected. A competency framework has also been introduced to support the need for higher skill levels, while being objective and ethical