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Judy Beasley AC501-02 Unit 4 AIA assignment

Judy Beasley AC501-02 Unit 4 AIA assignment - and the...

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Judy Beasley AC 501-02 January 6, 2012 AIA 14-11 Case Study AIA 14-10 Fair Value A. Yes! Classifying the securities as they propose will have the effect on net income that they say it will. Classifying the gains as trading securities will cause the gains to flow through the income statement and classifying the losses as available for sale and help to maturity will be different to the losses of this year’s income statement. B. Each proposes is unethical because it is not accordance with GAAP. The financial statements are fraudulently stated. The stakeholders are other members of the company’s officers and directors, company employees, the independent auditors, the stockholders,
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Unformatted text preview: and the prospective investors. C. It would not be unethical to sell the securities but it is management’s choice. The GAAP allows the sale of certain securities as long as the inventory method of assigning the cost is adopted by the company is consistently applied. If it is in the best interest of the company and its stakeholders, and in accordance with GAAP than their behavior is ethical. Engaging in unsound and poor business and accounting practices that waste assets or misstate financial statements is unethical behavior....
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