The American Institute of CPAs and the American Accounting Association's Management Accounting Section are teaming up to research non-financial performance measures.

The AICPA said that it would provide up to $50,000 for one or more projects. Members of the AAA Management Accounting Section will submit proposals in three areas:

  • Purposes of supplementing financial measures with non-financial performance measures;
  • Non-financial performance measure selection, validation of measures and outcomes, and reporting; and,
  • Effectiveness of systems for internal and external reporting that integrate both financial and non-financial performance measures.

Noting that mo re than 40 percent of members work in public, private and non-profit organizations, vice president for the AICPA's members in business and industry, John Morrow said that management accounting is critical to the institute's mission of serving the public interest.Morrow said that in a capital market system that relies heavily on intangible assets, stakeholders need information about an organization that extends beyond what appears on traditional financial statements.
The funded research is aligned with the goals of the Enhanced Business Reporting Consortium, of which the AICPA is a founding member. The Consortium's mission is to improve the quality, integrity and transparency of information used for decision-making.

The AICPA will select the winning proposal in September and is seeking to have the research completed by July 2007. Proposal guidelines may be found at http://aaahq.org/MAS/news/announcements/aicpa_grant.pdf.


Previously on WebCPA:AICPA Merges Leadership of Reporting Initiatives (June 15, 2006)

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