Transcript IMA Code of Ethics for Management Accountants

Management Accounting 1
Syllabus--Read this carefully. It
is a contract.
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Syllabus, lecture notes, quiz
and test grades, etc.
http://kbiz.khu.ac.kr/professor
/12.php
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Classroom Conduct
Class starts promptly at:
10:30 for sections A0309602
1:30 for sections A0309603
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Classroom Conduct
You are expected to prepare for
class:
Read the chapter in textbook
Write answers to assigned
questions, exercises and
problems.
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Classroom Conduct
Bring your textbook and a
calculator to class.
No computer use during class.
Show respect for me and your
classmates by turning off your
cell phone prior to class.
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Required text: Managerial
Accounting, 13th Edition,Garrison
Noreen, and Brewer, International
Edition
Connect, online program, access
code included on postcard inserted in
textbooks sold at university bookstore
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To Register for Connect
 On the worldwide web, go to the online
address (URL) for your section of the
course.
 (Address distributed in class)
 Enter the access code, and other items
requested
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Connect URL for assistance
 http://mpss.mhhe.com/connectlinks.p
hp
 This site provides instructions for
registration and using Connect
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Connect Assignments
 Assignments preceded by a barbell
symbol are for Practice.
 These may be completed at any time,
may be re-worked with different fact
patterns, and are ungraded.
 Practice with these before attempting
the graded assignments.
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Connect Assignments
 Assignments preceded by a “page”
symbol are graded.
 Must be completed by the end date
indicated in the Availability column--only 1 attempt permitted.
 Due by midnight on Friday of the
week in which assigned.
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Additional Online Learning
For supplemental material such
as:
chapter outlines
videos
practice quizzes
www.mhhe.com/garrison13e
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Managerial Accounting and
the Business Environment
Chapter 1
Managerial Accounting and
Financial Accounting
Managerial accounting
provides information
for managers of an
organization who
direct and control
its operations.
Financial accounting
provides information
to stockholders,
creditors and others
who are outside
the organization.
Expanding Role of Managerial
Accounting
Increasing complexity and
size of organizations
Regulatory
environment
World-wide
competition
Factors that
increase the need for
managerial accounting
information
Rapid development and
implementation of technology
Increased
emphasis
on quality
Traditional “Push”
Manufacturing Company
Forecast Sales
Make Sales from
Finished Goods
Inventory
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Order components
Store
Inventory
Store Inventory
Produce goods in
Anticipation of Sales
© The McGraw-Hill Companies, Inc., 2000
Traditional “Push”
Manufacturing Company
Traditional “push”
manufacturing
Raw
materials
Work in
process
Materials waiting
to be processed.
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Large
inventories
Finished
goods
Completed products
awaiting sale.
Partially completed products
requiring more work before
they are ready for sale.© The McGraw-Hill Companies, Inc., 2000
Exhibit
1-6
Lean Production
 Identify value
in specific
products/services.
 Identify the
business process
that delivers value.
The lean thinking
model is a five
step approach.
 Organize work
arrangements around
the flow of the
business process.
 Continuously pursue
perfection in the
business process.
 Create a pull
system that responds
to customer orders.
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© The McGraw-Hill Companies, Inc., 2000
Lean Production
The five step process results in a “pull” manufacturing system
that reduces inventories, decreases defects, reduces
wasted effort, and shortens customer response times.
Customer Places
an Order
Create Production
Order
Generate Component
Requirements
Goods Delivered
when needed
Production Begins
as Parts Arrive
Components
are Ordered
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© The McGraw-Hill Companies, Inc., 2000
Theory of Constraints
A constraint (also called a bottleneck) is anything
that prevents you from getting more of what you
want.
The Theory of Constraints is based on the
observation that effectively managing the
constraint
the key is
to determined
success.
The constraint
in aissystem
by the step that has the smallest capacity.
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© The McGraw-Hill Companies, Inc., 2000
Theory of Constraints
Only actions
that strengthen
the weakest link
in the “chain”
improve the
process.
2. Allow the
weakest link to
set the tempo.
3. Focus on
improving
the weakest
link.
1. Identify the
weakest link.
4. Recognize that
the weakest link
is no longer so.
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© The McGraw-Hill Companies, Inc., 2000
Importance of Ethics
in Accounting
 Ethical accounting practices build trust and
promote loyal, productive relationships with
users of accounting information.
 Many companies and professional
organizations, such as the Institute
of Management Accountants (IMA),
have written codes of ethics which
serve as guides for employees.
IMA Code of Ethics for
Management Accountants
Competence
Confidentiality
Integrity
Credibility
Resolution of Ethical Conflict
IMA Code of Ethics for
Management Accountants
Follow applicable laws,
regulations and
standards.
Maintain
professional
knowledge and
skills.
Competence
Prepare complete and clear
reports after appropriate
analysis.
IMA Code of Ethics for
Management Accountants
Do not disclose confidential
information unless legally
obligated to do so.
Do not use
confidential
information for
personal
advantage.
Confidentiality
Ensure that subordinates do
not disclose confidential
information.
IMA Code of Ethics for
Management Accountants
Avoid conflicts of interest
and advise others of
potential conflicts.
Do not subvert
organization’s
legitimate
objectives.
Integrity
Recognize and
communicate personal and
professional limitations.
IMA Code of Ethics for
Management Accountants
Avoid activities that could
affect your ability to
perform duties.
Refrain from
activities
that could
discredit the
profession.
Integrity
Communicate
unfavorable as well as
favorable information.
Refuse gifts
or favors
that might
influence
behavior.
IMA Code of Ethics for
Management Accountants
Disclose deficiencies or
delays
Credibility
in information, timeliness,
or internal controls
IMA Code of Ethics for
Management Accountants
Communicate information
fairly and objectively.
Credibility
Disclose all information
that might be useful to
management.
IMA Code of Ethics for
Management Accountants
Resolution of Ethical Conflict
Follow established policies.
For unresolved ethical conflicts:
 Discuss the conflict with immediate superior.
 If immediate superior is the CEO, consider the
board of directors or the audit committee.
 Except where legally prescribed, maintain
confidentiality.
IMA Code of Ethics for
Management Accountants
Resolution of Ethical Conflict
Clarify issues in a confidential discussion
with
an objective advisor.
Consult an attorney as to legal obligations.
The last resort is to resign.