Standards of Ethical Conduct for Managerial Accountants
Some of the standards of ethical conduct that managerial accountants have to comply with are competence, confidentiality, integrity, and creditability.
Competence: According to this standard of ethical conduct, managerial accountants have to be competent enough to cope with the requirements of the Institute of Management Accountants. The managerial accountants have to enhance their professional skills and knowledge to perform their work with professionalism and maintain their level of knowledge with professional expertise. Furthermore, the managerial accountants have to perform their duties according to the prevailing laws, rules and regulations, and the relevant accounting standards.
Confidentiality: The second standard of ethical conduct for managerial accountants is to maintain confidentiality with their clients. This ethical standard provides that the information that the clients provide to the managerial accountants must be handled with confidentiality. Such information can only be disclosed if the managerial accountants are authorized to do so. It becomes the obligation of the managerial accountant to inform all parties about the use of such important information.
Integrity: The third standard of ethical conduct for managerial accountants is integrity. According to standards, managerial accountants are supposed to mitigate conflicts of interest. The accountants should therefore have proper communication with all business managers to reduce conflicts of interest. In addition, it becomes the duty of managerial accountants to stop themselves from getting into an activity that would lead them to perform their practice unethically.
Credibility: The fourth standard of ethical conduct for managerial accountants is credibility. It states that the information should be communicated fairly and objectively. In this ethical conduct, all the relevant information should be disclosed by the managerial accountants. Such information basically intends to influence the understanding of the users.
Institute of Management Accountants (IMA)
The Institute of Management Accountants (IMA) is a worldwide association formed in 1919 to serve the financial accountants of the business organization. Some of the features of the Institute of Management Accountants are:
Promotes the ethical standards and best professional practices: The Institute of Management Accountants aims at promoting the standards laid in the context of education and development. In addition, this association promotes ethical standards and best professional practices in management accounting.
Standard of Ethical conduct: This worldwide association provides some of the standards of ethical conduct that the managerial accountants have to comply with. These are competence, confidentiality, integrity, and creditability.
Core Values: The Institute of Management Accountants also have some core values. These core values are integrity and trust, passion, respect, innovation, and continuous improvement.
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