Question: When the FASB issues new standards, the implementation date is usually 12 months from the date of issuance, with early implementation encouraged. Paula, controller, discusses

When the FASB issues new standards, the implementation date is usually 12 months from the date of issuance, with early implementation encouraged. Paula, controller, discusses with her financial Vice President the need for early implementation of a standard 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 standard will adversely affect the reported net income for the year, he discourages Paula from implementing the standard unt it is required.

What, if any, is the ethical issue in this case?

Is the financial Vice President acting improperly or immorally?

What does Paula have to gain by advocacy of early implementation?

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