CIMA BA2 · Chapter 1 · Question 6 of 12
The Global Management Accounting Principles set out four principles for effective management accounting. Which of the following is NOT one of those principles?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Compliance ensures that management reports follow a statutory format
Explanation
The four principles are: communication provides insight that is influential; information is relevant; impact on value is analysed; and stewardship builds trust. Management accounting reports have no statutory format, so compliance with a prescribed format is not one of the principles.
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