Reference no: EM133000481

Scenario: Singer, R., Winiarski, H., & Coleman, S. (2020). Accounting for sale and leaseback transactions. 

The board of directors, shareholders, and stakeholders are just now learning of this arrangement to employ off-balance sheet accounting for the new office building and of management's profit arrangement from the new company.

An alternative to this arrangement would be a sale leaseback. Read more about sale leasebacks at the following site:

Journal of Accountancy. https://www.journalofaccountancy.com/issues/2020/jul/accounting-for-sale-and-leaseback-transactions.html

Checklist: Address the following items:

• Explain to what extent the corporation's shareholders might feel the corporation breached any measures of an entity of the highest ethical standards.
• Explain to what extent the corporation's board of directors might ever feel that management breached any measures of an entity of the highest ethical standards.
• Use at least two of the ethical viewpoints presented in ethical approaches to provide the ethical reasoning to address your company's use of off-balance sheet accounting and management's profiting from the arrangement. Specify the approaches you use.