Section A: Flashcards
What are the CIMA definitions of a MA?
Financial Implications
Business Strategy
Cost Control
Internal Audit
Integrity
What are the CGMA Principles?
Communication provides influential insight.
Information is relevant
Impact on value is analysed.
Stewardship builds trust.
What are the CGMA Objectives?
1: To drive better decisions about strategy and it’s execution.
2: To help organisations plan/source information needed for creating strategy/tactics.
3: To simulate different scenarios that demonstrate cause and effect relationships between inputs and outcomes.
4: To actively manage relationships and resources so that the financial and non-financial assets of the organisation are protected.
What does the role of a MA contain?
It requires identification, generation, presentation, interpretation and use of relevant information to:
1: Inform strategic decisions.
2: Plan long, medium and short term operations
3: Determine capital structure and fund that structure.
4: Design reward strategies for execs and shareholders.
5: Inform operational decisions.
6: Control operations and ensure efficient use of resources.
7: Measure and report financial and non-financial performance.
8: Safeguard tangible and intangible assets.
9: Implement corporate governance procedures, risk management and internal controls.
What type of information do MA provide?
Strategic: Used by senior managers, relevant to long term decision making. Derived from Internal and external resources.
Tactical: Used by middle management, routinely prepared, relevant to short/medium term. Internally generated.
Operational: Used by front line managers, detailed and relevant to immediate term, internally generated.
What are CIMAs 5 fundamental ethical principles?
1: Integrity
2: Objectivity
3: Professional competence and due care
4: Confidentiality
5: Professional Behaviour
