Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Sign up and see all textbooks for free! Illustration

Question 13CA-b

Intermediate Accounting (Kieso)
Found in: Page 25

Answers without the blur.

Just sign up for free and you're in.


Short Answer

ETHICS (Rule-Making Issues) When the FASB issues new pronouncements, the implementation date is usually 12 months from date of issuance, with early implementation encouraged. Karen Weller, controller, discusses with her financial vice president the need for early implementation of a rule 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 rule will adversely affect the reported net income for the year, he discourages Weller from implementing the rule until it is required.

Instructions: Answer the following questions.(b) Is the financial vice president acting improperly or immorally?

Yes, the financial vice president’s actions are regarded as improper or immoral.

See the step by step solution

Step by Step Solution

Meaning of Pronouncement

The term pronouncement refers to the introduction of a new standard or policy by a company for the smooth conduct of business. It also helps the company to spread important information related to the company to its stakeholders.


Yes, because the rule Financial Accounting Standards Board leads to reasonable representation, it should be immediately implemented, despite its impact on net income.


Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.