week 6 solutions to in class questions s2 mon 9am6周课堂问题解答星期一上午点.pdfVIP

ACCT6001Semester2,2015

Week6Ethics

SuggestedsolutionstoIn-ClassStudentPracticeQuestions

Question1

Followalongwiththeslidesandtakenotesbasedonyourlecturer’scommentsand

yourin-classdiscussionsastheyrelatetothesequestions.

Week1:Accountingregulation

Whatthingsinfluenceourideasabout‘thepublicinterest’?

Conflictbetweencompetinginterestsofemployersorindividualclientscomparedto

ourownalinterest(moreonthislater).

Expectationsofsocietyasawholeratherthaninterestsofspecificinterestedparties.

Interestsofsmall(minority)shareholders

ConsiderationofusersoffinancialstatementsandthepurposeofGPFR.

Government

Economicenvironment

Non-financialfactors–environmentalandsocialpolicies

Whodecideswhatisin‘thepublicinterest?

PublicinterestVsprivateinterest

Canbedeterminedatanindividuallevel

Governmentvialegislation(egcarbontax,immunisation)

Politicallobbygroups(privateinterests)persuasivepowertoconvinceothersthat

theirinterestareinthepublicinterest.Forexample,pushformandatory

SustainabilityreportingbyAustraliancompanies(currentlythisisvoluntary).

ASICcorporateregulator…aspartoftheirannualreviewprocessoffinancial

statementskeyareasoffocus

IASB/AASBthroughthedeterminationofnew/revisedaccountingstandards.

Whatroledo‘ethics’playsinthedeterminationofaccountingregulation?(not

relevanttoMSE)

AllmembersoftheprofessionmustcomplywithethicalobligationsoftheCode.

PublicinterestisakeyrequirementoftheCode.

AllmembersofIASB/AASBaremembersoftheprofession.

Week2:AccountingChoices

Whatroledoethicsplayinthestandardsettingprocess?

Seeabove

Whoseinterestsshou