Determine an ethical issue that is involved in this case if any

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Business Finance

Description

Review the following case study.

When the FASB issues new standards, the implementation date is often 12 months from date of issuance, and early implementation is encouraged. Becky Hoger, controller, discusses with her financial vice president the need for early implementation of a standard that would result in a fairer presentation of the company's financial condition and earnings.

When the financial vice president determines that early implementation of the standard will adversely affect the reported net income for the year, he discourages Hoger from implementing the standard until it is required.

Write a response of 750 to 1,050 words in which you answer the following requirements:

  • Determine an ethical issue that is involved in this case if any.
  • Identify if the financial vice president acting improperly or immorally.
  • Explain what Hoger have to gain by advocacy of early implementation.
  • Identify who might be affected by the decision against early implementation.

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Explanation & Answer

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Running head: ETHICAL ISSUES IN FASB

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ETHICAL ISSUES IN FASB
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ETHICAL ISSUES IN FASB

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Introduction
In complying with newly introduced financial regulations, obstacles arise as to their
applications on the principles and concepts of accounting. Becky Hoger comes face to face with
the obstacle since the Vice presidents want nothing to do with the implementation of the
program. She probably has reservations due to the fear factor that earnings might get eaten into
by the FASB initiative. However, it's vital to make such people confident about the actions by
international regulators. The discussion seeks to establish the existence of ethics and morality
matters in the implementation of new finance guidelines and identify stakeholders affected by
the above action (Bragg, 2010).
Ethical issues in the case
The new pronouncements by the finance board mean that new standards need to get
adhered to develop and prepare ...


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