Question: The ethical accountant for Khouri Industries is trying to decide

The ethical accountant for Khouri Industries, is trying to decide how to present property, plant, and equipment in the notes to the balance sheet. She realizes that the statement of cash flows will show that the company made a significant investment in purchasing new equipment this year, but overall she knows the company's plant assets are rather old. She feels that she can disclose one amount for the title "Property, plant, and equipment, net of depreciation," and the result will be a low figure. However, it will not disclose the assets' age. If she chooses to show the cost less accumulated depreciation, the assets' age will be visible. She proposes the following:
Discuss the financial reporting issues, including any ethical issues.

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  • CreatedSeptember 18, 2015
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