Owusu is a chartered accountant who works in a team that reports to Mr. Frimpong, the...

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Owusu is a chartered accountant who works in a team that reports to Mr. Frimpong, the finance director of Tesa Holdings. Frimpong is also a chartered accountant. He has a domineering personality. Tesa Holdings revalues commercial properties as allowed by IAS 16. Valuation information received last year showed that the fair value of the property portfolio was 2% less than the carrying amount of the properties (with no single property being more than 4% different). A downward revaluation was not recognized on the grounds that the carrying amount was not materially different from the fair value. This year's valuation shows a continued decline in the fair value of the property portfolio. It is now 5% less than the carrying amount of the properties with some properties now being 15% below the carrying amount. Owusu submitted workings to Frimpong in which he had recognized the downward revaluations in accordance with IAS 16. Frimpong has sent him an email in response in which he wrote "Stop bothering me with this rubbish. There is no need to write the properties down. The fair value of the portfolio is only 5% different from its carrying amount. Restate the numbers immediately". Required: Describe the ethical issues in this scenario and explain how Owusu should address them. Owusu is a chartered accountant who works in a team that reports to Mr. Frimpong, the finance director of Tesa Holdings. Frimpong is also a chartered accountant. He has a domineering personality. Tesa Holdings revalues commercial properties as allowed by IAS 16. Valuation information received last year showed that the fair value of the property portfolio was 2% less than the carrying amount of the properties (with no single property being more than 4% different). A downward revaluation was not recognized on the grounds that the carrying amount was not materially different from the fair value. This year's valuation shows a continued decline in the fair value of the property portfolio. It is now 5% less than the carrying amount of the properties with some properties now being 15% below the carrying amount. Owusu submitted workings to Frimpong in which he had recognized the downward revaluations in accordance with IAS 16. Frimpong has sent him an email in response in which he wrote "Stop bothering me with this rubbish. There is no need to write the properties down. The fair value of the portfolio is only 5% different from its carrying amount. Restate the numbers immediately". Required: Describe the ethical issues in this scenario and explain how Owusu should address them.

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Desc ribe the ethical issues in this scenario and explain how Ow us u should address them The ethica... View the full answer