Kathy Onishi, the controller at Redondo Corporation, a private corporation, discussed with Redondo's vice-president of finance the

Question:

Kathy Onishi, the controller at Redondo Corporation, a private corporation, discussed with Redondo's vice-president of finance the possibility of switching from ASPE to IFRS. She said it would result in a better comparison of the company's financial condition and profit with its competitors. Furthermore, some bankers preferred to see prepared under IFRS. When the vice-president determined that switching would decrease reported profit for the year, he strongly discouraged Kathy from implementing IFRS.
Instructions
(a) Who are the in this situation?
(b) What, if any, are the ethical considerations in this situation?
(c) What could Kathy gain by adopting IFRS? Who might be affected by a decision not to adopt it?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...