Question

Question 2( 20 marks)

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

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

Answer 1

a) The institute of Management (IMA) is one of the top association for financial professionals. It offers the prestigious certified management accountant (CMA) designation. The IMA is a global membership association of accountants and financial professionals who work at nonprofit, private and public companies and academic institutions.

The IMA's mission is education and development in management accounting and finance, business practices and providing a forum for research.

The organization's vision is to be the leading resource for certifying, supporting, maturing and linking the world's best financial professionals and accountants.

The association's core values include integrity and trust, passion, respect, innovation and continuous improvement. It achieves these core values by providing access to career opportunities, building a network of industry professionals and developing partner connections.It offers educational programs to increase leadership opportunities and expand professional knowledge. IMA provides a forum for members by promoting forward thinking research and industry best practices and offering newsletters and journals.

Since 1919, IMA has been an advocate and resource for accounting and financial management professionals. It was founded in Buffalo, New York, to promote knowledge and professionalism and cost accountants and promote a wider understanding of the role of cost accounting in management. The original name of the association was the National Association of Cost Accountants, but in 1957, the name was changed to the National Association Of Accountants. In 1991, the name was changed again to the Institute of Management Accountant (IMA). The first chapter was formed in Chicago in 1920, and the first annual conference was held in Atlantic city. In 1972, the association created the CMA certification program. In 1983, It is issued the first code of ethics for management accountants in the United States, titled Standards of Ethical Conduct of Management Accountants. In 1996, IMA established the Certified Financial Manager program but discontinued in 2007.

To hold an active membership in IMA, complete and pass part 1 and 2 of CMA exam. Hold a bachelor's degree from an accredited college / university or a related professional qualification. Abide by IMA'S statement of Ethical professional practice. Have two continuous years of professional experience in management accounting or financial management.

a) Ethical principles and standards that guide work of a Management Accountant

Membership of IMA shall have ethically. A commitment to ethical professional practice includes overarching principles that express our values and standards that guide member conduct.

Principles

IMA's overarching ethical principles include :- Honesty, fairness, objectivity and responsibility Members shall act in accordance with these principles and shall encourage others within their organizations to adhere to them.

Standards

IMA members have a responsibility to comply with and upholds the standards of competence, confidentiality, integrity and credibility. Failure to comply may result in disciplinary action.

1. Competence

• Maintain an appropriate level of professional leadership and expertise by enhancing knowledge and skills.
• Perform professional duties in accordance with relevant loss, regulations, technical standards.
• Provide decision support information and recommendation that are accurate, clear, concise and timely. Recognise and help manage risk.

2. Confidentiality

• Keep information confidential except when disclosure is authorised or legally required.
• Inform all relevant parties regarding appropriate use of confidential information. Monitor to ensure compliance.
• Refrain from using confidential information for unethical or illegal advantage.

3. Integrity

• Mitigate actual conflicts of interest. Regularly communicate with business associate to avoid apparent conflicts of interest. Advice all parties of any potential conflict of interest.
• Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
• Abstain from engaging in or supporting any activity that might discredit the profession.
• Contribute to a positive ethical culture and place integrity of the profession above personal interest.

4. Credibility

• Communicate information fairly and objectively
• Provide all relevant information that could reasonably be expected to influence an intented user's understanding of the reports, analysis or recommendations.
• Report any delays or deficiencies in information timelines processing or internal controls in conformance with organisation policy and/ or applicable law.
• Communicate professional limitations or other constrains that would preclude responsible judgement or successful performance of an activity.

If you are on a career path as an accountant or financial manager in business, IMA can provide leading edge resources to help you stand out in the crowd, broaden your knowledge base, sharpen your skills, and become a true strategic partner in your organization.