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    Ethics issue-early implementation of IFRS

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    When the FASB issues new standards, the implementation date is frequently 12 months from date of issuance, and early implementation is encouraged. Becky Hoger, controller, discusses with her financial vice president the need for early implementation of a standard 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 standard will adversely affect the reported net income for the year, he discourages Hoger from implementing the standard until it is required.

    a. What, if any, ethical issue is involved in this case?
    b. Is the financial vice president acting improperly or immorally?
    c. What does Hoger have to gain by advocacy of early implementation?
    d. Who might be affected by the decision against early implementation?
    (CMA adapted)

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    Solution Summary

    Ethical confilict on using IFRS
    early implementation of IFRS
    fair reporting by early application of IFRS
    conflict between the employees regarding early implementaiton of IFRS