Role of CMAs in IFRS Era

Abstract

Analysed from the perspective of the integration of Financial Accounting System ( FAS) and Management Accounting System (MAS) , this paper critically reviews four issues:

*Fair value measurement framework

*Cost plus pricing and fair value based risk premium

*Componentisation of Assets

*Critical Estimation

and concludes that MAS would be the basis of FAS in the IFRS era. The paper also highlights the role of management accountants in different phases of IFRS implementation.

As IFRS influence and improve the decision making system in the process of delivering an improved financial reporting system, there is a need for developing International Management Accounting Standards in the form of best practices in the key decision making areas like fair value measurement, cost plus pricing, and componentisation and principles of estimation which would act as an accounting support system to IFRS.

Based on the limited review of four issues, this paper suggests to develop seven standards in the first phase.