Ethics refers to how people conduct themselves socially. It is an integral aspect of biblical teaching that spans the books of Genesis to Revelations. From these books, counsels, guidelines, warnings, commands, precepts, and principles are expounded on to steer people’s lives towards Godly living, honoring, ethical, and righteous life. In the Scriptures, Paul emphasizes that the Bible was not only aimed at revealing God’s paths towards salvation but also to instruct and guide Christians to embrace and live by righteous ways to equip everyone to work well (2 Tom. 3:14-17). As Christians, one is expected to receive and accept God’s ethical guidelines in wisdom and submission. In Ephesians, Christians are advised to undertake their engagements “in a manner worthy of the calling” bestowed upon them (4:1). The work below seeks to relate the IMA standard of credibility to biblical principles ( Version, 2009) .
IMA emphasizes that all members should uphold the outlined standards of Credibility, Integrity, Confidentiality, and Competence failure to which they will face disciplinary actions. The standards opening statement is akin to biblical principles that emphasize on the need to follow on God’s guidelines failure to which one faces condemnation. IMA’s guiding principle on upholding ethical professional practice is to position the members to contribute positively in building an ethical culture within the organization, standards that reflect the global scope of management accounting. The organization does not only point out on the building a noble and respected profession, but it also reflects and mirrors the very “good” work expected of the members. From the beginning, God always repeats the “good” work creation reflected. Adam and Eve were given practical standards to abide and live by in Genesis 2: 15-17 ( Version, 2009) . IMA stresses that in abiding by the ethical standards that include integrity, confidentiality, competence, and integrity, the members will help in “ensuring their organization has an influential, open, and positive ethical culture. After freeing the Israelites from bondage, God gave them a charter, to guide their conduct among themselves and with him. According to IMA statement of ethical professional practice, the outlined standards are aimed at increasing the need for a direct ethical guideline. As God required of the Israelites to build an ethical culture among them, so does IMA intend to do with its members for a positive, ethical, and Christian way.
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The basic codes outlined for the Israelites played a key role many centuries later when Jesus brought in the concept of salvation. He started his work by detailing the ethical manifesto towards guiding the behavior of his disciples (Mathew 5-7). His ethical manifesto is primarily called the Sermon on the Mountain. Jesus took his moral dimension to a whole new level. Just like the IMA ethical statement that upholds and stresses on building an ethical culture, Jesus reiterated that an ethical culture is the best foundation to loving others and serving God. Jesus’ call is repeated all over the New Testament (John 4:8; Peter 4:7-8; James 2:8; 1 Cor 13:1-3) ( Version, 2009). Serving others with competence, confidentiality, integrity, and credibility is akin to loving them and building the fitting ethical culture demanded of by IMA. For example, IMA emphasizes that a member should “mitigate actual conflict of interest by regularly communicating with business partners to avoid conflict of interest.” Such upholds Jesus’ resounding call to his disciples, and all that through the right belief system come the fitting right action.
The Bible underscores the fundamental purpose ethics serves; authenticity towards worship and glorifying God. IMA highlights the primary purpose of an ethical culture as its positive contribution to placing the integrity of the profession above personal interests. The two, one from the Scriptures and the other from IMA’s statement, have one thing in common, promoting an open, positive, Godly, and ethical culture among believers and members.
Reply to JeShoop’s Post
One of the most outstanding features of JShoop’s post is its categorical and notable difference between Net Present Value and Internal Rate of Return. Besides the theoretical formula provided, the post takes a comprehensive articulation of the definition of the two terms, a critical aspect and foundation of analyzing the two methods for capital budgeting. The post underscores that the net present value is calculated by taking the difference between the discounted cash inflow and outflows of a project. Through this simple differentiation and analysis, the post goes further from here to offer the next step in working with the positive or negative net present value. The distinction and analysis are thus practical and can be proven by the use of numbers and established values.
From the first step of comparison and application of the resulting values, it is evident that it is easier to apply any of the methods. At the same time, the disadvantages and advantages outlined offer a critical process of evaluation in case one is trying to weigh the two. For example, the post emphasizes that working with the internal rate of return can be frustrating, an attribute not experienced in working with the net present value. According to Garrison, Noreen, Brewer, (2018) the net present value offers more accurate estimates on a given rate of return. It thus adds flexibility and ease of understanding when working with discount rates and cash flows. However, as noted in the post, the internal rate of return has numerous inaccuracies, especially of cash flow in addition to erroneous estimations. With these outstanding attributes, any use of the net present value may lead up to unnecessary contradictions and wrong financial projections.
However, despite its downsides, the method is outstanding due to ease of understanding and application (Garrison et al., 2018). On the other hand, the post reiterates that the internal rate of return is weak, especially in projecting generation of high cash flows when working with large projects. Lanctot (“n.d”) reiterates that, since it is only concerned with present costing, it has the probability of ignoring future projections, thus can complicate the understanding of reinvestment rates. In weighing the two methods, it is evident that a poor choice is likely to bring forth poor or bad outcome. For example, in applying the internal rate of return, it is expected that the projected results may not reflect the actual value of cash flow or financial position (Lanctot, “n.d”). The same case applies to make a poor decision in life, and the resulting outcome may not present the best position on the ground worthy of Godly life as instructed in the Scriptures.
References
Garrison, R.H., Noreen, E.W., Brewer, P.C. (2018). Managerial Accounting. 16ed. New York. McGraw-Hill.
Lanctot, P. The Advantages and Disadvantages of the Internal Rate of Return Method. Hearst Newspaper (online). Retrieved from https://smallbusiness.chron.com/advantages- disadvantages-internal-rate-return-method-60935.html
Version, N. K. J. (2009). Holy Bible: New King James Version. Edinburgh: Thomas Nelson .
