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 no more than 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?
Explanation & Answer
Attached.
Running Head: ACCOUNTING ETHICS
1
Accounting Ethics
Institution Affiliation
Date:
ACCOUNTING ETHICS
2
In the contemporary society, businesses tend to rely on accounting ethics. It is rare to find
the investors, managers, and creditors placing their trust in the financial records. These people
have to confident that the accounting professionals in businesses are honest and that they adhere
to the accounting standards. In accounting, it is advisable for business people to implement
issued accounting standards such as the FASB at an early date. Early implementation is believed
to provide a fair performance of the monetary condition and earnings within a company
(Camfferman and Zeff, 2015). Therefore, a controller such as Becky Hoger would be right to
suggest the early implementation of a standard within the organization. Also, a financial vice
president in the same company would have adequate reasons to want to delay the
implementation.
This paper looks to demonstrate the ethical issues associated with the case where a
controller suggests an early implementation that the financial vice president is opposed to. It also
seeks to identify whether the financial vice president is acting immorally or improperly. The
paper will examine what Hoger is likely to gain by advocating for an early implementation as
well as identify the people to be affected by the decision to avoid an early implementation of a
standard.
The ethical issue linked to this case is the fact ...
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