CIMA's scientific activities bridge the gap between management accounting theory and practice.

Author:Coghlan, John
Position:IN BUSINESS - Chartered Institute of Management Accountants

CIMA is incorporated by royal charter. Its first objective under the charter is to "promote and develop the science of management accountancy". Investing in the development of management accountancy is, therefore, something we take extremely seriously. This commitment is upheld by our technical committee, whose role it is to oversee a rigorous technical development agenda.

By investing in robust academic research we can review developing practices and highlight what's working and what's not, informing you and keeping you at the forefront of your profession. For example, recent CIMA-funded studies explored how firms are measuring the performance of their e-business investments and managing interest-rate risk (see By sharing its findings more widely, the institute also remains a leading authority on management accountancy.

Following Enron and other accounting scandals, CIMA worked with the International Federation of Accountants to develop the concept of enterprise governance, focusing on the balance between regulatory conformance and business performance. By testing our enterprise governance framework against a number of international case studies, we identified an excessive focus on compliance and the need for a renewed emphasis on value creation. As a result of these findings, the CIMA Strategic Scorecard has been developed and is being trialled with a number of leading organisations. The scorecard provides an approach to managing the process of strategic development, implementation and the related risks. Firms such as EMI have already integrated it into their business practices.

Despite the UK's abolition of statutory operating and financial reviews, CIMA remains an ardent supporter of meaningful narrative reporting. Along with other leading bodies, we lobbied the Department of Trade and Industry to add a "safe harbour" clause to the company law reform bill to encourage directors to...

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