When the FASB issues new pronouncements, the implementation date is usually

$1.49 Excluding Tax

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Description

QUESTION:

When the FASB issues new pronouncements, the implementation date is usually 12 months from the date of issuance, with early implementation encouraged. Karen Weller, the controller, discusses with her financial vice president the need for early implementation of a rule 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 rule will adversely affect the reported net income for the year, he discourages Weller from implementing the rule until it is required.

Instructions

Answer the following questions.

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

b. Is the financial vice president acting improperly or immorally?

c. What does Weller have to gain by advocacy of early implementation?

d. Which stakeholders might be affected by the decision against early implementation?


8. Which of the following is false? 9. Subsequent events are reviewed through which date under IFRS?

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