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ACC701 Financial Accounting Solved

Referencing Styles : Harvard | Pages : 6
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Ethics

During the decision making process ethics should be considered as principles and moral (DeGeorge, 2014). Ethics is considered as an important element by which right decision is to be made by involving moral values into the decision and influence both the external and internal environment of business. It is assumed that activities of an organization should not affect the surrounding environment and society norms and their practices that they are going to use must be fair, incorporated and honest through which nourishment of a society can be done (Eun, 2009).

Issue related to ethics

 

As it is given in the case study that issues related to the ethics is to be evaluated through manager and accountant (Fernando, 2012). There are some aspects associated with professional ethics which must be followed by the employees and professionals of the organization and perform their duties with fairness, integrity, and honesty. It is suggested by the general manager of the Sunshine to the accountant Maria that some changes should be implemented into the financial statement of the company and generates fair revenue in the upcoming year (Frankena, (2015). After taking suggestion an accountant of Sunshine Ltd has prepared his mind to make some alteration into the financial statement by shifting the method of depreciation to the sum of years digits methods from the straight-line method. In this situation, the ethical issue has been generated that financial statement of Sunshine Company is being altered according to the necessity in which basic accounting guidelines are being unnoticed (Rayman, 2013). 

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