Reference no: EM131031879
Ethics Case 12 – Bartlet Financial
Bartlet Financial Services Company holds a large portfolio of debt and stock securities as an investment. The total fair value of the portfolio at December 31, 2014, is greater than total cost. Some securities have increased in value and others have decreased. Deb Faust, the financial vice president, and Jan McCabe, the controller, are in the process of classifying for the first time the securities in the portfolio. Faust suggests classifying the securities that have increased in value as trading securities in order to increase net income for the year. She wants to classify the securities that have decreased in value as long-term non-trading securities, so that the decreases in value will not affect 2014 net income. McCabe disagrees. She recommends classifying the securities that have decreased in value as trading securities and those that have increased in value as long-term non-trading securities. McCabe argues that the company is having a good earnings year and that recognizing the losses now will help to smooth income for this year. Moreover, for future years, when the company may not be as profitable, the company will have built-in gains.
Instructions
(a) Will classifying the securities as Faust and McCabe suggest actually affect earnings as each says it will?
(b) Is there anything unethical in what Faust and McCabe propose? Who are the stakeholders affected by their proposals?
(c) Assume that Faust and McCabe properly classify the portfolio. At year-end, Faust proposes to sell the securities that will increase 2014 net income, and McCabe proposes to sell the securities that will decrease 2014 net income. Is this unethical?
Logical grouping of business units to operate efficiently
: Departmentalization is the logical grouping of business units to operate efficiently. An organization can split its departments in many ways. Consider a company that develops software. The company develops office suite software, social media software..
|
Compare view of piaget and vygotsky on cognitive development
: Choose an age range (e.g., 3-5 or 6-8) and create an intervention for a cognitively delayed child in the age range you chose, using the ideas of Piaget and Vygotsky. Suggest at least two strategies derived from Piaget and at least two strategies d..
|
Should the minimum wage be different in different states
: The current federal minimum wage is $7.25 per hour (but some states and cities have a higher minimum wage). Should the federal minimum wage be increased. Should the minimum wage be different in different states? Give reasons for your answers and cons..
|
Make are ultimately our responsibility
: Today, you’ve got a decision to make. You’re gonna get better or you’re gonna get worse, but you’re not gonna stay the same. Which will it be?” -Joe Paterno. Discuss briefly in a half page or more the meaning of these quotes and what you learned from..
|
Bartlet financial-large portfolio of debt-stock securities
: Bartlet Financial Services Company holds a large portfolio of debt and stock securities as an investment. The total fair value of the portfolio at December 31, 2014, is greater than total cost. Some securities have increased in value and others have ..
|
What is the value of this maximum
: For what dimensions of the plate one would obtain the maximum volume of the cuboid? What is the value of this maximum?
|
What types of research methods have been used to study topic
: What is the significance of this topic/problem? Why is it important for people to understand? What areas of mental or physical health may it have an impact on?
|
Calculate the area of the figure
: Find the height of a parallelogram having sides 10 and 20 inches, and an included angle of 35 degree. Also, calculate the area of the figure.
|
Understanding of relevant theories
: Create an original 20- to 30-minute capstone portfolio presentation that demonstrates your core content knowledge. Presentation modalities may include, but are not limited to, Microsoft® PowerPoint® presentations of 12 to 15 slides, videos, and so..
|