Statement of Ethics for IMA Professional Accountants:

IMA Updates its Ethics Code for Management Accountants

Statement of Ethics for IMA Professional Accountants:

The Institute of Management Accounts published their statements of Ethics for their professional certified accountants. Which has all the code and conducts How to perform the responsibilities like an IMA professional Management Accountant. That was published and known as Statement on Management Accounting C(Revised), IMA – Institute of Management Accountants Statement of Ethical Professional Practice in August-2005.

1. The Ethical Statement of IMA is based on four principles which are Honesty, Fairness, Objectivity and Responsibility.

2. The four required standard for Ethical practice in management accountancy are Competence, Confidentiality, Integrity and credibility.

3. According to this statement the CMA Certified Accountants are answerable about this question to whom a problem should be reported?

4. Candidates who certified or perusing for CMA qualification they should memories the entire contents of the IMA Statement of Ethics. That help them in evaluation, implementation of the ethical issues such as fraudulent, manipulation of financial analyses, financial statement results and/or budgets.

5. That helps them to work with integrity to achieve the objectives of management accounting. Management Accountant will not allowed to commit those acts which are not according to the ethics of the statement.

6. Institute of Management Accountants has an ethics hotline for the members who wish to discuss ethical conflicts. That hotline number is 1-800-245-1383.

7. Management Accountants should provide the code of conduct of the policy and issues to counter the problem. The possible solutions which they take to resolve the issue must attached with it.

8. The Conflict Interest can be take anywhere with anyone and they demand solutions like financial issues with suppliers, customers and distributors.

9. The statements giving us the guide lines about the relationship with auditee and auditors.

10. IMA Statement of Ethical Professional Practice useful link is as follows:

https://www.imanet.org/-/media/b6fbeeb74d964e6c9fe654c48456e61f.ashx

Constant gross-margin percentage NRV method:

According to this method determination of the gross margin percentage for all of the products. When we find out the overall gross margin percentage and subtract the appropriate gross margin form the final sales value of each product to calculate total costs for the product and at last to subtract the separate costs to arrive at the joint cost amount. Determination of the gross margin. “ Gleim’s book 15 th edition for the CMA-USA students and Professionals is the source of all the examples and this topic”

Methods of Joint Product & By-Product Costing:

Joint Product Costing is techniques in which there are two or more products are produced with a common manufacturing process from a common process of input, which output from that manufacturing process, are known as joint products. The costs which incurred over this complete manufacturing is known as joint or common costs because the process output is in the shape of two or more than two products. But there is a point how we know that how much cost we need to spend over these separate products? At the Split-Off point where the products are being separate from the manufacturing process at these points when the cost incurred these costs are called Separable costs. For explaining these all methods we have many examples but the example which I am going to give there that is from the Oil sector. The Oil rigging is a process to produce the oil which a natural resource but during the producing process there are many other joint products which we abstract from this process the

Terminologies of Insurance:

Terminologies of Insurance: There are many terminologies and jargons normally used by the agents, brokers and bankers which are very helpful to understand the insurance policies and the operations related to them. These terminologies helps us to understand the whole processes. Insurance : That protect us from the uncertainties of life events. It protect us and our families form the harms of these events which badly damage our life through uncertain events. Insurer : Insurer are the companies which offer their insurance policies and people purchase their policies. Insured : Insured is the policy holder in who’s name the policy is purchased is called the insured. Premium : This is the amount which one pays to the insurance company to purchase an insurance policy. In an insurance agreement the risk is transferred from the insured to the insurer for which the latter charge

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