CIMA CODE OF ETHICS

1 cima code OF ETHICSFOR PROFESSIONAL ACCOUNTANTSJANUARY 2015 cima code of ETHICS for professional accountants03As chartered management accountants cima members (and registered students) throughout the world have a duty to observe the highest standards of conduct and integrity, and to uphold the good standing and reputation of the profession. They must also refrain from any conduct which might discredit the profession. Members and registered students must have regard to these guidelines irrespective of their field of activity, of their contract of employment or of any other professional memberships they may hold.

2 cima upholds the aims and principles of equal opportunities and fundamental human rights world-wide, including the handling of personal information. The Institute promotes the highest ethical and business standards, and encourages its members to be good and responsible professionals. Good ethical behaviour may be above that required by the law. In a highly competitive, complex business world, it is essential that cima members sustain their integrity and remember the trust and confidence which is placed on them by whoever relies on their objectivity and professionalism. Members must avoid actions or situations which are inconsistent with their professional obligations.

3 They should also be guided not merely by the terms but by the spirit of this code . cima members should conduct themselves with courtesy and consideration towards all with whom they have professional dealings and should not behave in a manner which could be considered offensive or ensure that cima members protect the good standing and reputation of the profession, members must report the fact to the Institute if they are convicted or disqualified from acting as an officer of a company or if they are subject to any sanction resulting from disciplinary action taken by any other body or has adopted the following code of ETHICS .

4 Parts A and B of this code are based on the IFAC* code of ETHICS , that was developed with the help of input from cima and the global accountancy profession. Part C of the code was developed in cooperation with the American Institute of Certified Public accountants (AICPA).The AICPA and cima joined together to create a designation for management accountants , the Chartered Global Management Accountant (CGMA). The CGMA designation is designed to elevate management accounting and further emphasize its importance for businesses worldwide. Part C of the code is designed to provide guidance to all cima members around the world who are members in business and professional accountants in business and, those who hold the CGMA credential.

5 When a CGMA is also a member in public practice the CGMA should also comply with the applicable guidance of the cima code of ETHICS and apply the most restrictive a member cannot resolve an ethical issue by following this code by consulting the ETHICS information on cima s website or by seeking guidance from cima s ETHICS helpline, he or she should seek legal advice as to both his or her legal rights and any obligations he or she may have. The cima Charter, Byelaws and Regulations give definitive rules on many further information see: : The cima code of ETHICS is a Law of the Institute (to which all members and registered students are required to comply) for the purpose of the definition of misconduct in Byelaw 1.

6 * international federation of A and B of the cima code of ETHICS are based on the IFAC Handbook of the code of ETHICS for Professional accountants , of the international ETHICS Standards Board of accountants (IESBA), published by IFAC in July 2014 and is used with permission by IFAC. cima PREFACEl0426 ChaptehprheSLoanhrpdhWdprennop1P4hPaapN1 SP1 SnPart C: Professional accountants in Business including CGMA designation holders Part C applies to professional accountants in business, and describes how the conceptual framework applies in certain situations. Part C of the code was developed in cooperation with the American Institute of Certified Public accountants (AICPA); and, like Parts A and B, the elements of the updated Part C which apply to cima members and students continue to reflect IFAC s fundamental principles and conceptual framework C section 310 addresses ethical conflicts, and includes an interpretation under cima s Integrity and Objectivity Principles, and AICPA s Integrity and Objectivity Rule.

7 Section 320 addresses conflicts of interest, including how they are identified, evaluated and disclosed of. Offering or accepting gifts, entertainment and other forms of inducements are found in section 330. Preparing and reporting information (340) is addressed with subheadings including knowing misrepresentations in the preparation of financial statements or records , subordination of judgment , and obligation of a member to his or her employer s external accountant . Information related to educational services can be found in section 350. Section 360 highlights the principle of Professional Competence and Due Care and AICPA s General Standards Rule, and includes information around submission of financial statements, accounting principles, and responsibility for affirming that financial statements are in conformity with the applicable financial reporting framework.

8 cima s Professional Behaviour and Confidentiality Principles, and AICPA s Acts Discreditable Rule are addressed in section 370, with subheadings including discrimination and harassment in employment practices , solicitation or disclosure of CPA/ cima examination questions and answers , failure to file a tax return or pay a tax liability , negligence in the preparation of financial statements or records , governmental bodies, commissions, or other regulatory agencies , indemnification and limitation of liability provisions , confidential information obtained from employment or volunteer activities , and false, misleading or deceptive acts in promoting or marketing professional services.

9 Part A: General application of the CodePart A establishes the fundamental principles of professional ETHICS for professional accountants . It also provides a conceptual framework that they shall use to identify, evaluate and apply safeguards to eliminate threats to compliance with the fundamental A addresses conflicts of interest ( ), ethical conflict resolution ( ), and communicating with those charged with governance ( ). The five fundamental principles listed in Part A are Integrity (110), Objectivity (120), Professional Competence and Due Care (130), Confidentiality (140), and Professional Behaviour (150).

10 Part B: Professional accountants in Public PracticePart B applies to professional accountants in public practice, and describes how the conceptual framework applies in certain situations. It provides examples of safeguards that may be appropriate to address threats to compliance with the fundamental principles. It also describes situations where safeguards are not available to address the threats, and consequently, the circumstance or relationship creating the threats shall be avoided. Professional accountants in public practice may also find Part C relevant to their particular B addresses professional appointments (210), including client and engagement acceptance, and changes in a professional appointment.