Acct3563 Individual Report
1. Define the problem
As an accountant, I am aware that the company has been smoothing its profits during the previous years. I also suspect that the company will draw down funds from the reserve account to smooth out the damages that the contamination issue have on its profit for the year.
Who are the stakeholders
The stakeholders of the company include:
Internal stakeholders * Me * Mr. Robson * Company Board of Directors * Employees of the company
External stakeholders * Shareholders/Investors * Creditors/Debt-holders
2. Ethical principles (Utilitarianism)
Ethics are concerned with the fundamental concepts and principles of decent human conduct; which is having a sense of what is right and wrong. Utilitarianism is an ethical theory where the rightness and wrongness of an action entirely depend on whether it is able to maximize overall well-being. However utilitarianism is often criticized for its moral aspects, as acting in a utilitarian way often involves making immoral or unethical sacrifices if the outcome results desirably.
Key applications of Utilitarianism
Consequentialism
Consequentialism conveys that the rightness and wrongness of an action depend entirely on its consequence and outcome. Stakeholders that may be vulnerable to our company’s income smoothing practices include: * Investors/shareholders * Creditors/Debtholders * Board of Directors * Employees
Maximisation and Aggregation
Maximisation and aggregation suggest that the value of a take action should be made as much as possible, where such value is determined by summing or average the values surrounding each associated individual. In this case, vulnerable external stakeholders, mainly shareholders will be considered as the “greatest number of people” with their well-being as a first priority in my decision making criteria.
Welfarism
Welfarism suggests that the rightness and goodness of a course of action depends entirely on its consequential impact on
As an accountant, I am aware that the company has been smoothing its profits during the previous years. I also suspect that the company will draw down funds from the reserve account to smooth out the damages that the contamination issue have on its profit for the year.
Who are the stakeholders
The stakeholders of the company include:
Internal stakeholders * Me * Mr. Robson * Company Board of Directors * Employees of the company
External stakeholders * Shareholders/Investors * Creditors/Debt-holders
2. Ethical principles (Utilitarianism)
Ethics are concerned with the fundamental concepts and principles of decent human conduct; which is having a sense of what is right and wrong. Utilitarianism is an ethical theory where the rightness and wrongness of an action entirely depend on whether it is able to maximize overall well-being. However utilitarianism is often criticized for its moral aspects, as acting in a utilitarian way often involves making immoral or unethical sacrifices if the outcome results desirably.
Key applications of Utilitarianism
Consequentialism
Consequentialism conveys that the rightness and wrongness of an action depend entirely on its consequence and outcome. Stakeholders that may be vulnerable to our company’s income smoothing practices include: * Investors/shareholders * Creditors/Debtholders * Board of Directors * Employees
Maximisation and Aggregation
Maximisation and aggregation suggest that the value of a take action should be made as much as possible, where such value is determined by summing or average the values surrounding each associated individual. In this case, vulnerable external stakeholders, mainly shareholders will be considered as the “greatest number of people” with their well-being as a first priority in my decision making criteria.
Welfarism
Welfarism suggests that the rightness and goodness of a course of action depends entirely on its consequential impact on