CIMA BA2 Syllabus A. THE CONTEXT OF MANAGEMENT ACCOUNTING - Global Management Accounting Principles - Notes ^{4 / 6}

There Are 4 Principles

These tell us all about what good Management Accounting should be about...

1. Good Communication

   All the employees know the Strategy

   No jargon 

   (All helps make better decisions)

2. Relevant Information

   For good decisions...

   Info should be accurate, timely and reliable - this also includes non financial information (both quantitative and qualitative information can be relevant). 

   Providing irrelevant information will not help the organisations make good decisions.

3. Value Impact

   We must always analyse the impact on value of the organisation of our decisions. 

   Therefore, we must use models to estimate value - especially models that prioritise value added over cost.

4. Stewardship and Trust

   This is all about managing the relationships so that the assets, value and reputation of the organisation are protected. 

   This will be done by hiring people with integrity, competence and managing the risk to the organisation.