CA1-13 ETHICS (Rule-Making Issues) When the FASB issues new pronouncements, the

Question

CA1-13 ETHICS (Rule-Making Issues) When the FASB issues new pronouncements, the implementation date is usully months from date of issuance, with early implementation encouraged. Karen Weller, controller, discusses with Vice president the need for early implementation of a rule 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 rule the reported net income for the year, he discourages Weller from implementing the rule until it is required.

Explanation / Answer

This specific article provides information about ethical decision making which is beneficial for the organisation. As companies overall financial conditions and earning does not have to be immediately fair. Applying this specific type of structure into the organisation would not be a good idea. All implementation of this specific rule would adversely affect the overall revenue generated from the organisation, this is specific rule without modifications or changes is very dangerous for the revenue generation of the organisation. Hence we can say that decision of applying the specific type of rule into the organisation would be unethical and it would decrease the overall level of implementation of the specific role in to the organisation. As this rule would decrease the overall sales of the organisation, should not be implemented immediately without modification into the organisation.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.