Question

1. Provide brief information about the IMA(Institute Of Management Accountants) , its history , mission , vision , core values , conditions for membership …etc. In K.S.A( not more than 200 words) ( 10 marks)

2. Identify the ethical principles& standardsthat should guide the work of a Management accountant.In K.S.A (Refer to the Statement of Ethical Professional Practice) ( 10 marks)

Answer 1

1. History
(1) IMA was founded in 1919 in Buffalo, New York as the National association of cost accountants later changing its name to IMA in 1957.
(2) It has its headquarters in Montvale, New Jersey, United States, and regional offices in Americas, Asia/Pacific, Europe, and Middle East/India.
(3) In 1969, it formed the management accounting practices committee that was entrusted with task of promoting management accounting as a core area of study in line with IMA views.
(4) It had 12 members from several accounting bodies like FASB (Financial Accounting Standards Board) and other prominent accounting regulatory groups.
(5) The committee later merged with Foundation for applied research forming the MAC/FAR committee

2. Vision
To be the leading resource for developing, certifying, connecting, and supporting the world’s best accountants and financial professionals in business.

3. Mission
IMA’s mission is to provide a forum for research, practice development, education, knowledge sharing, and advocacy of the highest ethical and best business practices in management accounting and finance.

4. Core Values
1. Respect for the Individual
2. Passion for Serving Members
3. Highest Standards of Integrity and Trust
4. Innovation and Continuous Improvement
5. Teaming to Achieve

5. Requirements for membership
1. Professional membership: Candidate must be an accountant or financial manager in a business.
2. Academic membership: Candidate must be a full time faculty member at IMA.
3. One and two year student membership: The student desiring the said membership must be enrolled in 6 or more credit hours at a university or college.
4. CMA: Apart, a CMA candidate can also get membership benefits of IMA.

Ethical Standards of a management accountant

​​​​Four standards of ethical conduct in management accountants’ professional activities were developed by the Institute of Management Accountants.

The four standards are:
(1) Competence
(2) Confidentiality
(3) Integrity
(4) Credibility.

Credibility is a key standard that is based on an accountant communicating information with fairness and objectivity, disclosing all information that is relevant to the intended users understanding, and disclosing “delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.

4 International management accounting principles

1. Influence: Communication presents insight which is crucial. Communication constitutes the start and end of the management accounting.

2. Relevance: Information is valuable for one and all.

3. Value: The influence on value is estimated.

4. Credibility: Stewardship forms credibility.