The Chartered Institute of Management Accountants (CIMA) announced today that it intends to withdraw from the Consultative Committee of Accountancy Bodies (CCAB).
With 168,000 members in 168 countries, CIMA now claims to be the world’s largest management accountancy body. In a short statement, the institute said the move would allow it to focus resources where they have the largest benefits for members and students, plus wider public and business interests.
"CIMA’s agenda is to develop and support the role of financially qualified business leaders who work in organisations around the world. Therefore the CCAB, with its emphasis on audit, has diminishing relevance for the institute. CIMA sees the UK’s Financial Reporting Council (FRC) as the independent statutory regulator for the sector and plans to play an active role in both the FRC and International Federation of Accountants (IFAC) to pursue its strategic, global ambitions where relevant to our stakeholders,’ said CIMA's executive director for governance and professional standards Robin Vaughan.
The CCAB is an umbrella organisation that brings together the ICAEW, ICAS, ACCA, CIPFA and ICAI (Ireland). The body describes itself as a "forum in which matters affecting the profession as a whole can be discussed and co-ordinated" that enables the profession to speak with a unified voice to government.
With their chartered status and co-ordinated approaches to training and disciplinary matters, the CCAB bodies have traditionally enjoyed the cachet of being "proper" accountancy bodies. The CCAB also contributes in part to funding the FRC.
With CIMA breaking ranks and debates about protecting the term "accountant", questions will arise about other bodies' commitment to CCAB, and whether it will be able to withstand the financial fallout.
AccountingWEB’s Head of Insight has been with the site since 1999 and likes to spend his time studying accountants’ technology habits. When not nerding out, you can find him exploring obscure indie music and searching for the perfect organic sourdough loaf from his base in Brighton, UK.