agine you are the accountant for Drive Write, a company that produces computer disk drives, and you are in charge of all accounting functions within the company. The president has informed you that if the company's profits grow by 20 percent this year, you will receive a $20,000 bonus, and she will receive a S50,000 bonus. No bonuses will be awarded if profit growth is less than 20 percent. Because the company's profits have grown 20 percent annually for the last 10 years, investors have come to expect significant growth from one year to the next. Near the end of this fiscal year, the president and you have the following conversation: We are awfully close to hitting our numbers and getting to the 20 percent target. With two weeks remaining, projections show we will come in at 18 percent for the year. What can we do on the accounting side to increase President current vear profits? Well, I'm not sure there is anything we can do. Our accounting is squeaky clean, as confirmed by our independent auditors. Perhaps our sales will Accountant mprove next vear. There has to be something we can do-I could sure use the bonus money, and our investors would appreciate an increase in their investment! I know we have a large customer order to be filled the first week of next year. Why not President include that sale in this vear's numbers? Accountant I'm not comfortable recording sales in the wrong fiscal year We're only talking about moving sales by a few days! I would like you to consider this carefully. If you can't do this, I may have to find an accountant President: who can! Let's talk about our options later this week. Question: The situation at Drive Write creates a serious ethical dilemma. (The Drive Write example is based on a real company called MiniScribe Corporation, subsequently purchased by a competitor.) Companies are constantly under pressure to meet sales and profit goals. Employees who succeed in meeting these goals often reap huge monetary rewards; those who fail may be penalized with lower pay or may even lose their jobs Item 1-Review the IMA Statement of Ethical Professional Practice found at https://www.imanet.org/insights-and-trends/business-leadership-and-ethics/ima-statement-of-ethical- rofessional-practice?ssopc- (Opens in a new window.) Plain text: https://www.imanet.org/insights-and-trends/business-leadership and-cthics/ima-statcmcnt-of-cthical-profcssional-practicc?ssopc-1 Item 2 - With that information in mind, discuss the following questions. Your posting should be at leas 500 words in length. You should also reference information already learned in our studies Describe the four key standards of ethical conduct for IMA members outlined in the IMA Statement of Ethical Professional Practice 1. 2. What steps does the IMA recommend for resolving ethical conflicts? 3. Using the IMA Statement of Ethical Professional Practice as a guide, discuss your options as the accountant at Drive Write

agine you are the accountant for Drive Write, a company that produces computer disk drives, and you are in charge of all accounting functions within the company. The president has informed you that if the company's profits grow by 20 percent this year, you will receive a $20,000 bonus, and she will receive a S50,000 bonus. No bonuses will be awarded if profit growth is less than 20 percent. Because the company's profits have grown 20 percent annually for the last 10 years, investors have come to expect significant growth from one year to the next. Near the end of this fiscal year, the president and you have the following conversation: We are awfully close to hitting our numbers and getting to the 20 percent target. With two weeks remaining, projections show we will come in at 18 percent for the year. What can we do on the accounting side to increase President current vear profits? Well, I'm not sure there is anything we can do. Our accounting is squeaky clean, as confirmed by our independent auditors. Perhaps our sales will Accountant mprove next vear. There has to be something we can do-I could sure use the bonus money, and our investors would appreciate an increase in their investment! I know we have a large customer order to be filled the first week of next year. Why not President include that sale in this vear's numbers? Accountant I'm not comfortable recording sales in the wrong fiscal year We're only talking about moving sales by a few days! I would like you to consider this carefully. If you can't do this, I may have to find an accountant President: who can! Let's talk about our options later this week. Question: The situation at Drive Write creates a serious ethical dilemma. (The Drive Write example is based on a real company called MiniScribe Corporation, subsequently purchased by a competitor.) Companies are constantly under pressure to meet sales and profit goals. Employees who succeed in meeting these goals often reap huge monetary rewards; those who fail may be penalized with lower pay or may even lose their jobs Item 1-Review the IMA Statement of Ethical Professional Practice found at https://www.imanet.org/insights-and-trends/business-leadership-and-ethics/ima-statement-of-ethical- rofessional-practice?ssopc- (Opens in a new window.) Plain text: https://www.imanet.org/insights-and-trends/business-leadership and-cthics/ima-statcmcnt-of-cthical-profcssional-practicc?ssopc-1 Item 2 - With that information in mind, discuss the following questions. Your posting should be at leas 500 words in length. You should also reference information already learned in our studies Describe the four key standards of ethical conduct for IMA members outlined in the IMA Statement of Ethical Professional Practice 1. 2. What steps does the IMA recommend for resolving ethical conflicts? 3. Using the IMA Statement of Ethical Professional Practice as a guide, discuss your options as the accountant at Drive Write

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4TP: Malone Industries has been in business for five years and has been very successful. In the past...

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