Solution-Which is the key fundamental ethical principle

Which is the key fundamental ethical principle

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Reference no: EM133000309

You are a recently qualified Chartered Accountant working as a financial accountant at FreightWays Limited. FreightWays has a 30 June financial year end.

You are considering an adjustment to revenue from transport services. These services were scheduled prior to 30 June 2021 year end, but will be performed in July 2021. In order to meet FreightWays' budgets, you want the revenue to be brought forward and recognised in June 2021. You understand this is not in line with IFRS 15 Revenue from Contracts with Customers.

There was a slight fall in transport service bookings in 2021 but FreightWays needs to show a steady growth in profit over the 2021 and 2022 reporting periods. Profit for the next financial year is expected to be high due to strong improvements in the economy. If you record the accounting adjustment (i.e. recognise the revenue in June 2021), profit after tax for the year ending 30 June 2021 will increase by $1 million.

Problem 1: Under the International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants, which of the following is the key fundamental ethical principle that you are at risk of breaching?

Reference no: EM133000309

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Which is the key fundamental ethical principle

Reference no: EM133000309

Reference no: EM133000309

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