Ethical Perspective on Accounting Standard

Question: Discuss about the Ethical Perspective on Accounting Standard. Answer: Introduction Sharing the same primary and secondary schools, Matt and Stephanie wanted to help each other during their time of need. Matt had been going through a financial crisis while Stephanie was struggling to establish her business in advertising (Needles et al. 2013). Stephanie had asked Matt to help in her bid and analyze her bid. This assignment would give an idea whether Matt should analyze the bid of Stephanie or not. Matt and Stephanie are said to be childhood friends who had shared their primary and secondary schools and university. Both Matt and Stephanie are well established in their career. However, recently Matt had been suffering from financial crisis and Stephanie wants to establish her successful advertising firm with the help of Matt. In return, Stephanie would help Matt to solve his financial crisis. Matt should not hesitate to help Stephanie in this case as they are childhood friends and it is expected that Stephanie would not cheat Matt at any context (Himick et al. 2016). In-fact, the strong background of Stephanie would help her to establish her business and it would help Matt to solve his financial crisis. Thus, Matt should not feel any reservation to help Stephanie and the instincts of Matt are incorrect. It would not be ethical to analyze Stephanies bid. This is because Matt works in a company where he had been appointed as an accountant and the firm trusts him. However, Matts responsibility is to stay loyal towards the company without taking any advantage of his position (Henderson et al. 2015). However, as a friend Matt can provide some ideas to Stephanie, as a friend, so that she can analyze the bid herself. According to APES 110 Revised Code of Ethics for Professional Accountants (effective 1 July 2011 with early adoption permitted) issued by the Accounting Professional and Ethical Standards Board, there lies a fundamental principal in APES 110 Code of Ethics for Professional Accountants (George et al. 2014) . This fundamental principle states that an employee must be straightforward and honest in all professional and business relationships. Thus, on analyzing Stephanies bid, Matt would violate the fundamental principle of not being honest in his profession. Conclusion Matt would be advised not to analyses the bid of Stephanie, which would help her to establish her successful advertising business. This is because Matt works in FCPA designation as an accountant and he has some responsibility towards his company. Though Matt is suffering from financial crisis, but analyzing the bid of Stephainie would force him to violate APES 110 Revised Code of Ethics for Professional Accountants. This can land him into trouble if his company comes to know about his betrayal. It could hamper his career permanently. Thus, it is advisable that Matt can suggest some analysis techniques of bid to Stephainie and advise her to use them of her own to analyze her bid. It would help Matt to remain loyal towards his company as well as play the role of a helpful friend. References George, G., Jones, A. and Harvey, J., 2014. Analysis of the language used within codes of ethical conduct. Journal of Academic and Business Ethics, 8, p.1. Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting. Pearson Higher Education AU. Himick, D., Brivot, M. and Henri, J.F., 2016. An ethical perspective on accounting standard setting: Professional and lay-experts contribution to GASBs Pension Project. Critical Perspectives on Accounting, 36, pp.22-38. Needles, B.E., Powers, M. and Crosson, S.V., 2013. Principles of accounting. Cengage Learning.