Financial Times

New CIMA initiative to drive Sri Lankan tea industry

CIMA (Chartered Institute of Management Accountants) last week said it was launching a new initiative to support the tea industry of Sri Lanka.
Working with the Planters’ Association of Ceylon, the initiative is planned to significantly streamline the management accounting practices in tea plantation management, which continues to play a significant role in the Sri Lankan economy, CIMA said in a press release.

The project will develop management accounting practice statements (MAPS) specifically for tea plantations, and will build on the findings of a recent CIMA-sponsored research study which raised a number of issues around the practices and techniques being used in the sector. CIMA believes that the development of the tea plantation management accounting practice statements (TPMAPS) could create a positive impact on plantation management and lead to greater efficiency in the utilisation of resources, planning and control and formulation of operational strategies. This is also believed to be equally applicable to the tea industries of all the major producing and exporting nations, such as China, India, Indonesia, Bangladesh and Vietnam.

“The TPMAPS will be modelled on the International Management Accounting Practice Statements produced by the International Federation of Accountants (IFAC). They will reflect the Sri Lanka economy and the specificities of tea plantation management. Initially focusing on cost determination, it is expected that they will include all management accounting practices related to the growing and manufacturing of tea, including planning and control, reduction of waste, investment appraisal and value creation through efficient resource management.

A committee has been established to steer the development of the project. A sub-committee of the Technical Committee of CIMA Sri Lanka Division, the TPMAPS Committee consists of three CIMA members and three tea industry specialists from the Tea Planters’ Association of Ceylon,” the statement said.
It is expected that this initiative will take around ten months to complete.

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