When is an Accounting Practice Ethical?

Earnings Management
Knowledge Center

 

Next Topic

Earnings Management > Best Practices > When is an Accounting Practice Ethical?

When is an Accounting Practice Ethical?
Jane Mulder
Do you agree that if an accounting practice is not explicitly prohibited, or is only a slight deviation from the rules, it should be considered an ethical practice? Why? (...) Read more? Sign up for free
 

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

    Log in

 
It Depends on the Implications of the 'Error'
Jagdish B Acharya, Consultant, India, Premium Member
There is a hierarchy in accounting "errors" along following lines:
1. Minor error of omission - impact is negligible on share value
2. Error of commission - here it becomes serious. Even if it is for window dressing, it may be considered unethical. The penalty may depend on its impact on share value.
3. Wrong classification of assets and stocks - it can have big impact on share value and will be taken as unethical. In some cases it may escape as error in accounting practice or judgement.
4. Misclassification of current assets or withdrawal of money by such means. - may be considered fraud and dealt with accordingly.
By adding one additional team of independent governmental auditors risk of such practices may be minimised.
 

 
Earnings Management Practices
Mauricio Crippa, Manager, Brazil, Member
(...)
 

 
Ethical Accounting Practices
Mahmoud Al-Fayyad, Career Consultant, Jordan, Member
(...)
 

 
Impartial Audit Comittees
Andana, Analyst, Sweden, Member
(...)
 

 
Ethical Accounting Practices
Broli, Consultant, South Africa, Member
(...)
 

   

   

 
When is an Accounting Practice Ethical?
Raymond J. Wennier, Consultant, Guatemala, Member
(...)
 

 
Ethical Accounting
Dilip Khanal, CEO, Nepal, Member
(...)
 

 
When is an Accounting Practice Ethical?
Raymond J. Wennier, Consultant, Guatemala, Member
(...)
 

   

         
Special Interest Group Leader

Interested? Sign up for free.


Earnings Management
Summary
Forum
Best Practices
  • When is an Accounting Practice Ethical?


Earnings Management
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.2 - Last updated: 10-12-2019. All names of their owners.