11-15-2005, 08:49 AM
Your questions answered on ethics code
Why we need a new code, what has changed and more. By Danielle Cohen, ethics manager, CIMA.
On 21 October CIMAâs Council approved the adoption of a new Code of Ethics. This will replace the current Ethical Guidelines, which have been in place since 1992. The new code will come into effect in January 2006. This article provides answers to some of your most frequently asked questions on the subject.
Why is CIMA adopting a new code?
The Code of Ethics provides more comprehensive guidance than the Ethical Guidelines that it replaces, reflecting recent developments in ethics across the accountancy profession.
Who does the code apply to?
The Code of Ethics will apply to all CIMA members and students from January 2006, just as CIMAâs Ethical Guidelines currently apply to all members and students.
How was CIMAâs new Code of Ethics developed?
The code is based on the International Federation of Accountantsâ (IFACâs) new Code of Ethics, which was developed with the input of the global accountancy profession, including CIMA. CIMA members and students can therefore be confident that the ethical standards they are expected to uphold are aligned with those of accountancy institutes worldwide.
Why is CIMAâs code based on the IFAC code?
CIMA is a member of IFAC, and we feel that the principles contained in the IFAC code adequately meet our requirements as a framework for a Code of Ethics. Historically, elements of the Ethical Guidelines have been based on the IFAC Code. We are ensuring that, as well as aligning our standards with those of the international profession, we are also meeting our obligations as a member of IFAC.
Are the other Consultative Committee of Accountancy Bodies institutes adopting similar codes?
All of the other CCAB institutes will be adopting similar codes based on the IFAC Code over the coming months.
What are the main differences between the new Code of Ethics and the current Ethical Guidelines?
The new code is longer and more comprehensive than the Ethical Guidelines. It includes sections specifically relating to both professional accountants in business (the majority of CIMA members) and those in public practice. The new code also deals with each of the fundamental principles in much more detail than the Ethical Guidelines.
One of the most important ways in which the new code differs from the existing Ethical Guidelines is that it uses a âconceptual framework approachâ. This approach recognises that it is impossible to define every situation that creates threats to the fundamental principles, and therefore that it is equally impossible to set out specific mitigating action. Rather than supplying a set of rules, the framework aims to help an accountant to identify, evaluate and respond to threats to compliance and if necessary to apply safeguards to eliminate or reduce those threats.
What are the fundamental principles of the Code of Ethics?
integrity
objectivity
professional competence and due care
confidentiality
professional behaviour.
Is CIMA involved in any other ethics activities?
We are arranging a number of other activities to promote ethics and the new code. These include significantly increasing the provision of ethics support for members and students.
Where can I find the Code of Ethics?
The Code will be available to download from the CIMA website from January 2006, and will be distributed on a CD attached to the front of the February 2006 issue of Financial Management magazine. For further information or guidance about ethics please see the CIMA website or contact Danielle Cohen, ethics manager (danielle.cohen@cimaglobal.com or +44 (0)20 8849 2318).
BELIEVING IN YOURSELF IS THE FIRST STEP TO SUCCESS.
never tell Allah how big ur worris are?...........just tell ur worries how big ALLAH is .....
islamabad_@hotmail.co.uk
Why we need a new code, what has changed and more. By Danielle Cohen, ethics manager, CIMA.
On 21 October CIMAâs Council approved the adoption of a new Code of Ethics. This will replace the current Ethical Guidelines, which have been in place since 1992. The new code will come into effect in January 2006. This article provides answers to some of your most frequently asked questions on the subject.
Why is CIMA adopting a new code?
The Code of Ethics provides more comprehensive guidance than the Ethical Guidelines that it replaces, reflecting recent developments in ethics across the accountancy profession.
Who does the code apply to?
The Code of Ethics will apply to all CIMA members and students from January 2006, just as CIMAâs Ethical Guidelines currently apply to all members and students.
How was CIMAâs new Code of Ethics developed?
The code is based on the International Federation of Accountantsâ (IFACâs) new Code of Ethics, which was developed with the input of the global accountancy profession, including CIMA. CIMA members and students can therefore be confident that the ethical standards they are expected to uphold are aligned with those of accountancy institutes worldwide.
Why is CIMAâs code based on the IFAC code?
CIMA is a member of IFAC, and we feel that the principles contained in the IFAC code adequately meet our requirements as a framework for a Code of Ethics. Historically, elements of the Ethical Guidelines have been based on the IFAC Code. We are ensuring that, as well as aligning our standards with those of the international profession, we are also meeting our obligations as a member of IFAC.
Are the other Consultative Committee of Accountancy Bodies institutes adopting similar codes?
All of the other CCAB institutes will be adopting similar codes based on the IFAC Code over the coming months.
What are the main differences between the new Code of Ethics and the current Ethical Guidelines?
The new code is longer and more comprehensive than the Ethical Guidelines. It includes sections specifically relating to both professional accountants in business (the majority of CIMA members) and those in public practice. The new code also deals with each of the fundamental principles in much more detail than the Ethical Guidelines.
One of the most important ways in which the new code differs from the existing Ethical Guidelines is that it uses a âconceptual framework approachâ. This approach recognises that it is impossible to define every situation that creates threats to the fundamental principles, and therefore that it is equally impossible to set out specific mitigating action. Rather than supplying a set of rules, the framework aims to help an accountant to identify, evaluate and respond to threats to compliance and if necessary to apply safeguards to eliminate or reduce those threats.
What are the fundamental principles of the Code of Ethics?
integrity
objectivity
professional competence and due care
confidentiality
professional behaviour.
Is CIMA involved in any other ethics activities?
We are arranging a number of other activities to promote ethics and the new code. These include significantly increasing the provision of ethics support for members and students.
Where can I find the Code of Ethics?
The Code will be available to download from the CIMA website from January 2006, and will be distributed on a CD attached to the front of the February 2006 issue of Financial Management magazine. For further information or guidance about ethics please see the CIMA website or contact Danielle Cohen, ethics manager (danielle.cohen@cimaglobal.com or +44 (0)20 8849 2318).
BELIEVING IN YOURSELF IS THE FIRST STEP TO SUCCESS.
never tell Allah how big ur worris are?...........just tell ur worries how big ALLAH is .....
islamabad_@hotmail.co.uk