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What extent the corporation shareholders might feel

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Reference no: EM132999306

You are a new accountant for a company and have discovered that the company's management has formed a new corporation that will build a new corporate headquarters for the company and then lease the asset to the company on a 30-year lease, thus allowing the company to employ off-balance sheet accounting for the new assets. The arrangement will also allow management to make additional income from their new venture.

Scenario: 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:

Singer, R., Winiarski, H., & Coleman, S. (2020). Accounting for sale and leaseback transactions. 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.Directions for Submitting Your Assignment

Reference no: EM132999306

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