IMA

Definition

The Institute of Management Accountants (IMA) is a global organization that serves the needs of management accountants and finance professionals. It provides a framework for ethical standards and professional development in the field of managerial accounting.

5 Must Know Facts For Your Next Test

1. The IMA was founded in 1919 and has over 140,000 members in more than 150 countries.
2. The IMA's mission is to promote the advancement of the management accounting profession through research, education, and the development of ethical standards.
3. The IMA's Statement of Ethical Professional Practice outlines four core principles: Competence, Confidentiality, Integrity, and Objectivity.
4. The Certified Management Accountant (CMA) certification is a globally recognized credential that demonstrates expertise in managerial accounting and financial management.
5. The IMA provides a wide range of educational resources, including professional development programs, conferences, and publications, to support the growth and advancement of management accountants.

Review Questions

• Describe the role of the Institute of Management Accountants (IMA) in the field of managerial accounting.
  • The Institute of Management Accountants (IMA) plays a crucial role in the field of managerial accounting by providing a framework for ethical standards, professional development, and the advancement of the management accounting profession. The IMA's mission is to promote the development of management accountants through research, education, and the establishment of ethical guidelines outlined in the Statement of Ethical Professional Practice. The IMA also offers the Certified Management Accountant (CMA) certification, which is a globally recognized credential that demonstrates expertise in financial planning, analysis, control, and decision support.
• Explain how the IMA's Statement of Ethical Professional Practice guides the ethical conduct of management accountants.
  • The IMA's Statement of Ethical Professional Practice outlines four core principles that management accountants and finance professionals are expected to uphold: Competence, Confidentiality, Integrity, and Objectivity. The Competence principle requires management accountants to maintain the knowledge and skills necessary to perform their duties effectively. The Confidentiality principle mandates the protection of sensitive information. The Integrity principle emphasizes honesty, fairness, and truthfulness in all professional activities. The Objectivity principle calls for management accountants to remain impartial and free from undue influence when making decisions or providing recommendations. By adhering to these ethical standards, management accountants can ensure they act in the best interests of their organizations and the public.
• Analyze how the IMA's role and ethical standards impact the decision-making process of management accountants.
  • The Institute of Management Accountants (IMA) plays a pivotal role in shaping the decision-making process of management accountants through its ethical standards and professional development initiatives. The IMA's Statement of Ethical Professional Practice serves as a guiding framework that requires management accountants to maintain competence, preserve confidentiality, demonstrate integrity, and remain objective in their decision-making. This ethical foundation helps management accountants navigate complex situations, make informed judgments, and provide accurate and reliable information to support organizational decision-making. Furthermore, the IMA's educational resources and the Certified Management Accountant (CMA) certification program equip management accountants with the necessary knowledge and skills to analyze financial data, evaluate alternatives, and recommend strategic decisions that align with the organization's goals and ethical principles. By upholding the IMA's ethical standards and leveraging its professional development opportunities, management accountants can make well-informed, ethically sound decisions that contribute to the long-term success and sustainability of their organizations.

Related terms

Certified Management Accountant (CMA):

A professional certification offered by the IMA that demonstrates expertise in financial planning, analysis, control, decision support, and professional ethics.

Statement of Ethical Professional Practice:

A set of ethical guidelines established by the IMA that outlines the principles and standards of conduct for management accountants and finance professionals.

Managerial Accounting:

The branch of accounting that focuses on providing information to managers within an organization to aid in decision-making, planning, and control.