Chartered Institute of Management Accountants
The Chartered Institute of Management Accountants (CIMA) is a UK based professional body offering training and qualification in management accountancy and related subjects. It is focused on accountants working in industry, and provides ongoing support and training for members.
CIMA's current corporate logo
|Predecessor||The Institute of Cost and Management Accountants|
|Formation||18 April 1919|
|Legal status||Chartered body|
|Member's designations||ACMA, FCMA and CGMA|
|CEO||Andrew Harding (acting)|
|IFAC member since||7 October 1977|
|Former name||Institute of Costs and Works Accountants|
CIMA is one of the professional associations for accountants in the UK and Ireland. Its particular emphasis is on developing the management accounting profession. CIMA is the largest management accounting body in the world with 106,095 members in 2016. CIMA is also a member of the International Federation of Accountants.
CIMA was founded in 1919 as "The Institute of Cost and Works Accountants" (ICWA). It specialised in the development of accounting techniques for use in the internal control of manufacturing, service and public sector operations. It developed a position as the leading professional body in the areas of product costing, budgeting, management accounting, investment appraisal and business decision making.
In October 1944, the Institute of Cost and Works Accountants organisation in Ireland was formed.
The institute changed its name from ICWA to the "Institute of Cost and Management Accountants" (ICMA) in 1972 and subsequently to the "Chartered Institute of Management Accountants" (CIMA) in 1986, after it was granted a Royal Charter, a globally recognised accounting qualification, based in the UK and particularly honored in Commonwealth countries. It has played a role in founding fraternal professional bodies such as the Institute of Cost and Management Accountants of Pakistan, the Institute of Cost and Management Accountants of Bangladesh, the Institute of Cost and Works Accountants of India and the Institute of Management Accountants (USA).
In 2011, CIMA entered into a joint venture with the American Institute of Certified Public Accountants (AICPA) to launch a global management accounting designation called the Chartered Global Management Accountant (CGMA). In the Americas outside the U.S., non-U.S. CPAs can obtain the new designation as an AICPA International Associate, after a rigorous assessment process. In the rest of the world, new designation holders are able to become members of CIMA after the same assessment process.
In 2014 CIMA and the AICPA co-created the Global Management Accounting Principles (GMAPs). The result of research from across 20 countries in five continents, the principles aim to guide best practice in the discipline.
In June 2016, members of both the AICPA and CIMA approved evolving the joint venture through the creation of a new international association. The Association of International Certified Professional Accountants launched in 2017, bringing together the expertise and capabilities of the AICPA and CIMA to strengthen the entire accounting profession – both public and management accounting – through stronger advocacy, enhanced member resources and a broader platform to reach the next generation. The AICPA and CIMA membership bodies remain and provide all existing benefits to members.
CIMA operates a standard scheme of qualifying examinations for prospective members. It promotes local education, training and management development operations, and new techniques through its research foundation and the dissemination of management accounting practices through publications and other media related activities. CIMA has been active in recent educational and vocational initiatives in former Eastern bloc countries. It publishes a monthly journal, supplied free to members and registered students, called 'Financial Management'.
CIMA is recognised as a professional accounting body for various statutory purposes by UK and various overseas governments. The institute regulates the activities of its members by a code of practice, a discipline committee and (a recent innovation) a continuing education scheme. Its governing body is its council, comprising members elected from regional branches. Each of the branches has a committee and is responsible for much of the 'grass roots' activity. Activity such as qualification development is undertaken from the London head office.
The CIMA Global Business Challenge, an annual international business and strategic management competition for undergraduates around the world, is designed to bring out the best in the young business leaders of tomorrow.
In July 2009, CIMA added an online community – CIMAsphere – to its website. The community consisted of a range of blogs, discussion boards, groups, community answers, expert Q&A sessions and some social networking features for members, students and the general public. This has since been shut down. Members are instead encouraged to join the CIMA LinkedIn group, and students are directed to CIMAconnect, an online study support portal.
CIMA is proactive to tie up with American CPA because of the current convergence trend between US-GAAP and IFRS, reinforced following the merger of the iconic New York Stock Exchange with Germany’s Deutsche Boerse AG. "It remains to be seen whether companies listed in a combined exchange would be required to report under IFRS, US GAAP or both, but as the US appears to be moving towards IFRS adoption it is more likely the international standards would be the accounting rules of choice"
CIMA has two grades of full membership:
- Associate – designated by the letters ACMA
- Fellow – designated by the letters FCMA
To be admitted as an Associate, a candidate must have:
- completed a period of qualifying practice of at least three years, documented and signed by appropriate witnesses
- passed the institute's 17 qualifying examinations, including 3 integrated case study exams under 2015 syllabus
- been proposed and seconded for membership by two individuals who have direct experience of the candidate's work experience.
To become a Fellow, a candidate ACMA must, in addition, have appropriate experience at a senior level.
In the past, CIMA has offered forms of association which do not amount to full membership, for example an "Affiliate" membership class was promoted in the 1970s.
CIMA members have access to a number of strategic alliances, including:
- Institute of Chartered Accountants of Pakistan (ICAP)
- Chartered Institute of Management Accountants (CIMA) and Institute of Cost and Management Accountants of Pakistan (ICMAP) signed Memorandum of Agreement (MoA) for mutual cooperation to develop Management Accountancy profession.
- An accelerated route to Associateship of the Association of Corporate Treasurers
- A mutual recognition agreement with the Society of Management Accountants of Canada
- A mutual recognition agreement with CPA Australia
- A strategic alliance with the Institute of Chartered Accountants of Australia
- On 26 September 2006, CIMA announced a joint qualification program with the New Zealand Institute of Chartered Accountants
- MOU with Institute of Cost Accountants of India
- Strategic Alliance with the Institute of Cost and Management Accountants of Pakistan (ICMAP)
- A joint venture with the AICPA to establish and promote a new, internationally recognised designation for management accounting — the Chartered Global Management Accountant (CGMA).
- Recognition from the South African Institute of Chartered Accountants
- An accelerated route to the CGMA designation for members of the Chartered Institute of Public Finance and Accountancy (CIPFA)
In recent years, CIMA has been party to merger talks with other professional accounting bodies including the ICAEW in 1995 and again in 2005.