1. From your point of view, is there an ethical issued involved in this case? In your own words, explain why there is or is not an ethical issued involved and what the issue is.

2. Is the financial vice president acting improperly or immorally? Why?

3. What does Weller have to gain by advocacy of early implementation?

4. How might stakeholders be affected by the decision against early implementation?

5. Should we hold financial decision makers and companies responsible and why?
 

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When the FASB issues new pronouncements, the implementation date is usually 12 months from date of issuance, with early implementation encouraged. Karen Weller, controller, discusses with her financial vice president the need for early implementation of a rule that would result in a fairer presentation of the company's financial condition and earnings. When the financial vice president determines that early implementation of the rule will adversely affect the reported net income for the year, he discourages Weller from implementing the rule until it is required. When the FASB issues new pronouncements, the implementation date is usually 12 months from date of issuance, with early implementation encouraged. Karen Weller, controller, discusses with her financial vice president the need for early implementation of a rule that would result in a fairer presentation of the company's financial condition and earnings. When the financial vice president determines that early implementation of the rule will adversely affect the reported net income for the year, he discourages Weller from implementing the rule until it is required.

Answer rating: 100% (QA)

Yes there is a clear ethical issue at play The financial vice president VP is discouraging the contr... View the full answer