Judy Beasley AC501-02 Unit 2 AIA assignment

Judy Beasley AC501-02 Unit 2 AIA assignment - B) Under GAAP...

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Judy Beasley December 13, 2011 AC501-02 Ethical Decision Making AIA 4-11 Presentation of Property, Plant, and Equipment A) The ethical issues involved are honesty and integrity in financial reporting, Andrea Pafko’s professionalism and the last item I see is the full disclosure problem that will arise if she does it the way she would like to. I also see that it may also be a violation of the SOX or Code of conduct on Andrea’s part if she does not disclose the method of depreciation in the footnote of the balance sheet.
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Unformatted text preview: B) Under GAAP it may be acceptable to present Property, Plant, and equipment net of depreciation on the balance sheet, but I feel that it would also be an attempt to hide information from the financial statement users. Information has always been a very powerful and useful thing in my eyes, therefore with the presentation that Pafko is considering it would not show the age of the plant assets and the companys need to concentrate its future cash out flows on the replacement of these assets....
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