1. The FASB issues new standards on accounting. The implementation date is usually a year from the date of issuance with early implementation encouraged. Jane Durham, chief accountant is discussing implementing this new standard as soon as possible. The CFO however realizes that an early implementation will have a negative effect on the firm’s net income for the year. The CFO discourages the chief Accountant from implementing the standard until the required date.
– Is the CFO’s action proper? Why or why not? Is there an ethical issue involved? If so how?
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