1. Briefly discuss the rules for revenue recognition in accounting and how they pertain to this case. Does the proposed handling of the $12 million violate those rules? Be specific.
2. Assume Carl Land is a CPA and Helen Strom holds the Certificate in Management Accounting (CMA). What ethical issues exist for them in this situation? Identify the stakeholders in this case and Strom’s ethical obligations to them.
3. To what extent should Helen consider the gambling problems of her boss in deciding on a course of action? To what extent should Helen consider her child care situation and the threatened cutoff of reimbursements? If you were Helen Strom, what would you do? Why?

  • CreatedDecember 30, 2014
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