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When the FASB issues new standards, the implementation date is often 12 months from date of issuance, and early implementation is encouraged. Becky Hoger, controller, discusses with her financial vice president the need for early implementation of a standard 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 standard will adversely affect the reported net income for the year, he discourages Hoger from implementing the standard until it is required.
Write a response of 750 to 1,050 words in which you answer the following requirements:
- Determine an ethical issue that is involved in this case if any.
- Identify if the financial vice president acting improperly or immorally.
- Explain what Hoger have to gain by advocacy of early implementation.
- Identify who might be affected by the decision against early implementation.
Format your submission consistent with APA guidelines.
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