SMAs present IMA’s position on best practices in management accounting. These authoritative monographs cover the broad range of issues encountered in practice, including: Leadership Strategies, Cost Management, Ethics, Business Performance, Technology Enablement, and Enterprise Risk Management.
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Values and Ethics: From Inception to Practice (2008). This SMA identifies the issues that are driving the increased attention to ethical conduct and how they impact risk management and internal controls. It explains the steps required for organizations to clarify, define, and develop their values and create their codes of ethical conduct.
IMA Statement of Ethical Professional Practice (2005). The Statement contains standards of conduct to which the practitioners of management accounting and financial management are expected to adhere. Members of the Institute of Management Accountants acknowledge that obligation.
Managing Cross Functional Teams (1994). Organizations today are challenged to be faster, more reliable, more responsive, etc. Traditional organizational structures often have problems in meeting the challenge. Cross-functional teams increasingly are being used to solve problems and improve operations. This guideline can assist the management accountant and the other members of the team.
Developing Comprehensive Competitive Intelligence (1996). This guideline focuses primarily on competitor analysis and synthesizing that analysis into competitive intelligence. Firms today realize they cannot increase growth and profitability without a strong understanding of every aspect of competitors' business and activities.
Understanding and Implementing Internet E-Commerce (2000). This study can serve as a starting point for the exploration and implementation of Internet e-commerce. It provides finance and operations people with a basic understanding of Internet e-commerce, its applicability to their organization, and its unique challenges.
Implementing Activity-Based Costing (2006). Activity-based costing is a concept that can be used to correct the shortcomings inherent in the over-generalized cost systems of the past. It is a means of directing costs to the products and services responsible for the incurrence of those costs. The guideline provides an overview of ABC systems and an understanding of the roles played by management accountants in design and implementation.
Implementing Activity-Based Management: Avoiding the Pitfalls (1998). This Statement on Management Accounting (SMA) is addressed to management accountants and others who may lead or participate in efforts to implement ABM management in their organizations. It supplements the Institute of Management Accountants’ “Implementing Activity-Based Costing,” SMA which describes the basic ABC implementation process. From 1993 until today, the emphasis has shifted from ABC to ABM, or the use of ABC information to manage and improve process performance.
Measuring the Cost of Capacity (1996). Maximizing the utilization of its capacity is necessary for an organization to compete in the global marketplace. Efficiently managing the cost of the capacity is a key to unlocking the value-creating potential of a company's resources. This Statement will facilitate the measurement process.
Tools and Techniques for Implementing ABC/ABM (1998) Gaining the full benefits of ABCM is achieved by properly assessing, designing, and implementing the underlying data collection and analysis system. The focus of this Statement is on core tools and techniques needed for successful ABCM implementations.
Tools and Techniques for Implementing Target Costing (1998). Driven by the voice of the customer to better understand what product and service attributes are needed, target costing becomes the means to long-term growth attained by doing what the customer wants, better and faster than the competition.
Theory of Constraints (TOC) Management Systems Fundamentals (1999). This Statement presents the process of designing a TOC management system that is compatible with other key cost management initiatives of the firm.
Implementing Capacity Cost Management Systems (2000). Deals with the implementation of a capacity cost management system designed to help an organization optimize its investment in resources or process capability.
Designing an Integrated Cost Management System for Driving Profit and Organizational Performance (2000). This Statement explains how an organization can better understand how to integrate its cost management system to optimize its investment in information.
Implementing Target Costing (1999). The Statement provides a concise introduction to target costing and describes the steps required to implement the concept. It is designed to help make the management accountant a key contributor to the application of target costing to the firm's managerial process.
Accounting for the Lean Enterprise: Major Changes to the Accounting Paradigm. As companies employing lean principles restructure their organization from functional specialties to process-focused business units, accounting services must also readdress the content and form of the information provided. This SMA focuses on the information necessary for value stream management, product family view of costs, budgets and financial planning, and transaction elimination.
Unrecognized Intangible Assets: Identification, Management and Reporting (2010). This Statement on Management Accounting (SMA) focuses on the growing impact of the unrecognized portion of intangible corporate assets. These items have grown to become a major source of value to public corporations. They contribute to competitive capacity and they form a critical aspect of an organization’s sustainability. While these assets fail to meet the criteria for recognition under current reporting standards, the identification, assessment, management, control, retention, and nurturing of these assets is necessary for an organization to maintain its capacity to operate. This SMA identifies the importance and breadth of unrecognized intangibles and presents issues and concerns related to them. Various types of unrecognized intangible assets are discussed and approaches to managing and reporting these assets are suggested.
Customer Profitability Management (2010). Customer profitability management (CPM) is a strategy-linked approach to identifying the relative profitability of different customers or customer segments. This SMA provides a framework for implementing CPM through the measurement of customer profitability. Armed with this information, managers can focus on long-term customer profitability, devising strategies that add value to most-profitable customers, make less-profitable customers more profitable, and reduce or eliminate the erosion of profit by unprofitable customers, thereby increasing shareholder value.
Business Valuation (2009). This Statement will familiarize the financial professional with the methodologies in a valuation report and how to perform valuation calculations.
The Evolution of Accountability - Sustainability Reporting for Accountants (2008). This guideline identifies the key aspects of reporting for organizations embracing sustainability, and how these might be organized, structured, maintained, and monitored for effectiveness.
Managing the Total Costs of Global Supply Chains (2008). This Statement will help management accountants and others improve their understanding and the rationale for developing complete and accurate costing to support their companies and management in the improvement of supply chain performance, and in managing the inherent risks of sourcing and selling across borders and internationally.
Effective Benchmarking (1995). Benchmarking involves evaluating the other company's business process in order to incorporate best practices for improving performance and gaining a competitive advantage. This guideline describes tools and techniques that improve the effectiveness of benchmarking studies, with special emphasis on their practical applications.
Implementing Corporate Environmental Strategies (1995). The environmental movement is no longer of special interest only to students and avid environmentalists. Governments, corporations, and individuals are recognizing the benefits of environmental sensitivity and environmental progress. This statement provides practical operating principles and recommended approaches for implementing a corporate environmental strategy.
Measuring and Managing Shareholder Value Creation (1997). Corporate executives are under increasing pressure from investors to demonstrate that they are creating shareholder value. Both accounting-based earnings and return measures are perceived as having shortcomings in that respect. This Statement places the shareholder at the focal point of economic activities within the firm and compares and contrasts various measures that purport to quantify management's shareholder-value-creation abilities.
Tools and Techniques for Implementing Integrated Performance Management Systems (1998). This Statement describes methods that can facilitate implementation efforts, cites some common key performance indicators to guide the process, and highlights some common pitfalls.
Implementing Integrated Supply Chain Management for Competitive Advantage (1999). Provides an overview of Integrated Supply Chain Management (ISCM). In addition to developing a framework for planning and managing the implementation of ISCM, this study creates a cost and performance measurement system to effectively control the activities of the supply chain.
Tools and Techniques for Implementing Integrated Supply Chain Management (1999). Contains specific tools and techniques and discusses methods for implementing Integrated Supply Chain Management. This Statement provides supply chain effectiveness metric indicators with examples from specific companies.
Lean Enterprise Fundamentals (2006). An increasing number of companies are employing lean concepts in order to produce and deliver products and services to its customers. The objective of this SMA is to help financial professionals comprehend the underlying principles of lean processes and to broaden awareness of the impact of lean on management information.
Implementing Process Management for Improving Products and Services (2000). This study is intended to help an organization adopt a process orientation and achieve the performance improvements this initiative can provide. Process management helps an organization rethink their structure and flow of the work that comprises or supports the creation of customer value, focusing efforts and resources that have the greatest impact on process performance.
Implementing Automated Workflow Management (2000). Workflow is the flow of information and control in a nonmanufacturing process. These applications vary from simple processing of expense reports to complex loan processing applications. This study provides guidance on the implementation of an automated workflow management system that speeds the organization's response time and improves the accuracy of the communications and activities that result in the products and services that customers value.
Value Chain Analysis for Assessing Competitive Advantage (1996). Competitive advantage for a company means not just matching or surpassing what competitors can do but discovering what customers want and then profitably satisfying, and even exceeding, their expectations. Value chain analysis is a strategic tool to measure the importance of the customer's perceived value. This Statement is a guideline for understanding and using the value chain approach for assessing competitive advantage.
Tools and Techniques of Environmental Accounting for Business Decisions (1996). Users should read Implementing Corporate Environmental Strategies to have a basic understanding regarding corporate environmental strategy. This Statement builds on Implementing Corporate Environmental Strategies in providing various tools and techniques for use in integrating environmental impacts into management decisions.
Managing Quality Improvements (1993). The SMA provides practical operating principles and recommended approaches for implementing total quality management. It is designed to help make management accountants the key contributor to the achievement of quality.
Enterprise Risk Management: Frameworks, Elements, and Integration (2011). Understanding and managing risk has become imperative for successful leadership of organizations. This SMA provides an overview of the ERM process and frameworks and will help management accountants understand their roles and responsibilities in ERM projects.
Enterprise Risk Management: Tools and Techniques for Effective Implementation (2007). This Statement on Management Accounting on ERM, along with the earlier one published by IMA, provides guidance for the leaders of organizations in identifying, assessing, and managing risk, while at the same time growing their business. ERM requires strong commitment from C-level executives and an effective process tailored to each organization’s unique culture. A company’s implementation can benefit from the ERM knowledge that finance professionals bring to the process. In their quest to “drive business performance,” management accounting and finance professionals should seize the opportunity to become partners with senior management and the board in ERM implementation.
Definition of Management Accounting (2008). This Statement on Management Accounting (SMA) presents a new definition of management accounting, together with an explanation of the background leading to the new definition, the process undertaken to prepare the definition, and the criteria and rationale used in developing the new definition.
Definition and Measurement of Direct Material Cost (1986). As used in practice, in literature, and in litigation, direct material cost has a variety of meanings. This Statement provides a conceptual definition of what the term should signify in the absence of a specified alternative meaning.
The Accounting Classification of Workpoint Costs (1997). The documents intent is to recognize changes in the workplace environment (e.g., information technology, virtual offices, telecommuting) that call into question the traditional approaches to identifying and evaluating occupancy costs.
Redesigning the Finance Function (1997). Changes occurring today in organizations are creating pressure to reduce the cost of basic business transactions while enhancing the quality, reliability, and responsiveness of the systems that provide information for use both within and outside the company. The Statement provides practical operating principles and recommended approaches for redesigning the finance function.
Tools and Techniques for Redesigning the Finance Function (1999). This Statement augments in detailed application the previously issued Redesigning the Finance Function. In addition to reviewing the steps to redesign the finance function, this Statement provides specific tools to help implement the process, methods for monitoring results, including a process performance measuring system.
Implementing Shared Service Centers (2000). Covers the implementation phases for a Shared Services Center (SSC), including opportunity assessment, the design of the SSC, developing the SSC team, and suggestions on how to optimize the process. Also included in this Statement are pitfalls in implementation, and examples cited from companies' experiences.