Amy is a senior financial accountant for a large manufacturing company listed on the stock exchange. In her professional capacity she has learnt that the company’s profit for the year is above the expectations of the company directors and probably also of the financial analysts following the company. She expects that this information, when it will be made public in

Chapter 11, Exercises #5

Amy is a senior financial accountant for a large manufacturing company listed on the stock exchange. In her professional capacity she has learnt that the company’s profit for the year is above the expectations of the company directors and probably also of the financial analysts following the company. She expects that this information, when it will be made public in two weeks’ time, will positively impact on the company’s stock price. Having had a bit too much to drink with her friends in the pub, Amy recommends they invest in her company’s shares before the information is made public, so they are likely to be able to realize a gain when the financial information is released to the public. Think about which principles of the IESBA Code of Ethics you think the above scenario brings into question, what threats exist and the action Amy should take to resolve the issue.

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Related Book For answer-question

International Financial Reporting And Analysis

8th Edition

Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn

ISBN: 9781473766853