Angela Manternach, president of Manternach Designs, has instructed Carla Ruden, the head of the accounting department for Manternach Designs, to report the companys land in the companys accounting reports at its fair value of 170,000 instead of its cost of 100,000. Manternach says, Showing the land at 170,000 will make our company look like a better investment when we try

Chapter 1, Exercises #3

Angela Manternach, president of Manternach Designs, has instructed Carla Ruden, the head of the accounting department for Manternach Designs, to report the company’s land in the company’s accounting reports at its fair value of €170,000 instead of its cost of €100,000. Manternach says, “Showing the land at €170,000 will make our company look like a better investment when we try to attract new investors next month.”

Explain the ethical situation involved for Carla Ruden, identifying the stakeholders and the alternatives.

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,...

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Related Book For answer-question

Accounting Principles

IFRS global edition

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

ISBN: 978-1119419617