Determine any ethical considerations in the following scenarios. Ethical considerations can be seen at the end of
Question:
Determine any ethical considerations in the following scenarios. Ethical considerations can be seen at the end of the page:
A. Ethan NG is the managerial accountant for a big-sized public company in Canada. An industry stock analyst has invited Ethan to spend two weeks in Barbados at no cost to her. In return for this favour, Ethan would send him any financial press release before it becomes public. If Ethan takes the offer, in what ways did he breach the ethical considerations mentioned below? What would you do, if you were Ethan?
B. The company that you work for is hot in the market and is highly esteemed by investors. The shares are overpriced in your opinion. As the managerial accountant, you know that the company's earnings cannot sustain investor expectations, and you believe that the share price will fall dramatically within the next year. Your parents are thinking of investing a large part of their retirement income in the company. Do you tell them not to, on the basis of what you know?
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac