Answer
a.)The ethical issues manifest in this case relate to fair value accounting and its implication on transparency. Weller wants to uphold fairness in the financial statements, whereas the vice president is opposed to fairness.
b.)The vice president's suggestion can be described as unethical because her motivation is to avoid being transparent about the company's performance. Even though there is still time before the lapse of the implementation deadline, her motive is to give users a wrong view of the company's net income. The vice president's suggestions are a violation of transparency.
c). Early implementation would result in a fair view of the company's performance. Weller's advocacy will be a demonstration of professionalism. Weller's advocacy would save her from liability should stakeholders suffer losses after relying on neither fair nor transparent statements.
d.) Creditors and financiers are the foremost creditors that will be adversely affected for relying on a net income that does not consider fair value accounting.
Work Step by Step
a.)The ethical issues manifest in this case relate to fair value accounting and its implication on transparency. Weller wants to uphold fairness in the financial statements, whereas the vice president is opposed to fairness.
b.)The vice president's suggestion can be described as unethical because her motivation is to avoid being transparent about the company's performance. Even though there is still time before the lapse of the implementation deadline, her motive is to give users a wrong view of the company's net income. The vice president's suggestions are a violation of transparency.
c). Early implementation would result in a fair view of the company's performance. Weller's advocacy will be a demonstration of professionalism. Weller's advocacy would save her from liability should stakeholders suffer losses after relying on neither fair nor transparent statements.
d.) Creditors and financiers are the foremost creditors that will be adversely affected for relying on a net income that does not consider fair value accounting.
