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Help with Ethical issues in Accounting.

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I need some help with the following scenario:

Gianna Tuck is an accountant for Post Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Gianna notices that a great deal of funds have been spent ona particular product for a new drug. She hears "through teh grapevine" that the company is about to patent the drug and expects it to be a major advance in antibiotics. Gianna believes that this new drug will greatly improve company performance and will cause the company's stock to increase in value. Gianna decides to purchase shares of Post in order to benefit from this expected increase.

What are Gianna's ethical responsibilities, if any, with respect to the information she has learned through her duties as an accountant for Post Pharmaceuticals? What are the implications to her planned purchase of Post shares?

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Gianna purchased shares of Post in order to benefit from the expected increase in profit. This kind of case is unethical practice because it is a practice of insider trading. Insider Trading is "buying or selling of a security by someone who has access to material, nonpublic information about the security." 1
"Insider trading can be illegal or legal depending on when the insider makes the trade: it is illegal when the material information is still nonpublic--trading while having special knowledge is unfair to other investors who don't have access to such knowledge. Illegal insider trading therefore includes tipping others ...

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Ethics and the Conceptual Framework - Since the scandals of the late '90s, a discussion has taken place about principles-based and rules-based systems for accounting.

Since the scandals of the late '90s, a discussion has taken place about principles-based and rules-based systems for accounting. Many of the scandals involved issues where the organization technically may have met the rule while clearly violating the principle involved.

Please review the attachments:

Considering George Batavick's comments regarding principles-based accounting, prepare a 700-1,050 word paper in which you do the following:

a. Evaluate the conceptual framework developed by the Financial Accounting Standards Board (FASB)
b. Analyze the role and ethical considerations of judgment and decision making in accounting.
c. Take sides on whether principles-based accounting or rules-based accounting more adequately includes the role of ethics and fits best within the conceptual framework. In your paper, state the main arguments of each side, along with evidence to substantiate the arguments. You should conclude with a brief discussion of which side of the argument is stronger and why.

Book: Abdolmohammadi,(2002), Applied research and financial reporting, New York: McGraw-Hill.

Please show references and thank you in advance.

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