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Unlike financial accounting, management accounting does not need to be regulated by a regulating agency (such as AASB). However, it is 'governed/regulated', by its own
Unlike financial accounting, management accounting does not need to be regulated by a regulating agency (such as AASB). However, it is 'governed/regulated', by its own 'Codes of Conduct' (such as those mentioned in the text book). How you think non-adherence to these codes of conduct (choose any one) may result in unethical decisions in large corporations. You are a junior management accountant in Division A at Armidale Suit Company and report to your boss, Joe Taylor, the Division Incharge. You also have are responsible to the company Chief Management Accountant. Under performance pressure, Joe Taylor asks you to record a revenue of $251000 on December 31 2016. Though the company has received confirm orders from customers for this amount of shipment, however, shipment of the goods will take place on January 9, 2017.Joe is 'pressurising' you to record the revenue emphasizing that the company has confirm orders and that we are justified to record revenue on December 31 2016.Joe adds that this will just help him reach his Division performance target for the year ending 2016. i Given this situation, describe in your own words your ethical responsibilities in the light of CIMA code of professional conduct. ii. If Joe is persistent in his order, what should you do to handle the situation in the light of CIMA code of professional conduct
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