Accounting

posted by .

this is what I have to this question so far. Can you please see if there is anything I can add to this. What are the ethical issues involved?

The Ethical issues are not following the accounting standards and ethics of accounting.

Anne Distagne was the CEO of Linkage Construction
Inc., which served as the general contractor for the
construction of the air ducts for large shopping malls
and other buildings. She prided herself on being able
to manage her company effectively and in an orderly
manner. For years there had been a steady 22–25 percent
growth in sales, profits, and earnings per share,
which she wanted to continue because it facilitated
dealing with banks to raise expansion capital.
Unfortunately for Sue Fault, the chief financial officer,
the situation has changed.
“Sue, we’ve got a problem. You know my policy of
steady growth—well, we’ve done too well this year.
Our profit is too high: it’s up to a 35 percent gain over
last year. What we’ve got to do is bring it down this
year and save a little for next year. Otherwise, it will
look like we’re off our well-managed path. I will look
like I didn’t have a handle on our activity. Who
knows, we may attract a takeover artist. Or we may
come up short on profit next year.”
“What can we do to get back on track? I’ve heard we
could declare that some of our construction jobs are not
as far along as we originally thought, so we would only
have to include a lower percentage of expected profits
on each job in our profit this year. Also, let’s take the
$124,000 in R&D costs we incurred to fabricate a more
flexible ducting system for jobs A305 and B244 out of the
job costs in inventory and expense them right away.”
“Now listen, Sue, don’t give me any static about
being a qualified accountant and subject to the rules
of your profession. You are employed by Linkage
Construction and I am your boss, so get on with it. Let
me know what the revised figures are as soon as possible.”

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Business Check

    1. The majority of CEOs blame unethical employee conduct on: the breakdown of traditional religious institutions. a failure of leadership to establish ethical standards. the increase in lawsuits used to avoid personal responsibility. …
  2. com

    Prepare a 1,050- to 1,750-word paper in which you analyze the ethical and legal aspects associated with harrassment, addressing the following topics in your paper: 1.Describe the current moral and ethical issues faced by managers involving …
  3. Accounting

    this is what I have to this question so far. Can you please see if there is anything I can add to this. What are the ethical issues involved?
  4. Accounting-business

    Can you please see if there is anything I can add to this. What are the ethical issues involved?
  5. Current moral and ethical issues.

    I need to describe current moral and ethical issues faced by a child's day care. Can somebody give me some current moral and ethical issues?
  6. Ethical and Legal Issues

    Let’s start this discussion by providing examples of an ethical duty or ethical obligations you have encountered in your life. What are some examples of rules at WORK that might cause a conflict with your ethical standards?
  7. HCS/325 HEALTH CARE MANAGEMENT

    The Ethical issues considered important in today's health care organization -- how will ethical issues alter your way of conducting change in the organization
  8. HCM621

    As the health care industry evolves and changes so do the legal and ethical issues that its employees face. An employee of the facility you have chosen to study this term has come to you with a question. He has heard a lot about issues …
  9. Healthcare Management

    I having difficulties finding information for the following task. The Institutional Policy Review Team has asked you to prepare an employee training session on institutional, professional, and personal ethical standards and dilemmas …
  10. Computers

    What are the ethical, social, and political issues that might arise through using a wiki?

More Similar Questions