What Al Ghamdi gain by advocacy of early implementation

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Question - When the IASB issues new pronouncements, the implementation date is usually delayed for several months from date of issuance, with early implementation encouraged. Mohammed Al Ghamdi, controller, discusses with his financial vice president the need for early implementation of a rule 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 rule will adversely affect the reported net income for the year, he discourages Al Ghamdi from implementing the rule until it is required.

Instructions - Answer the following questions:

a. What, if any, is the ethical issue involved in this case?

b. Is the financial vice president acting improperly or immorally?

c. What does Al Ghamdi have to gain by advocacy of early implementation?

d. Which stakeholders might be affected by the early implementation decision?

Reference no: EM132855037

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