Ethic Case

Ethics Case 3-16

A business segment disclosure is basically a report listing out the separate accounts of a company’s different divisions. “Disclosure notes must include certain specific notes such as a summary of significant accounting policies, descriptions of subsequent events, and related third party transactions” (Spiceland, pg. 125). The purpose is to provide an accurate picture of the company’s performance to the shareholders. “Any explanation that contributes to investors’ and creditors’ understanding of the results of operations, financial position, and cash flows of the company” (Spiceland, pg. 125). I do perceive an ethical dilemma in the information that controller of the firm changed as they are no. The reason for the information is prepared is so the shareholders are aware of what is going on and they are able to make a decision based on the accuracy of the information that was presented before them about the company’s operations and cash flows. The information that was changed is presenting a false report and is presenting false information to the shareholders so they will not find out about the focus of the company on the South African operations. This is unethical and the controller basically stated she changed the information because they will react unfavorably. Thou shalt not lie is one of the Ten Commandments in the Bible. We as Christians should not be lying about information to purposely deceive others. Proverbs 13:5, KJV, “The righteous hate what is false, but the wicked bring shame and disgrace.”

The information that the controller wants to present to the shareholders could create a huge financial crisis for the company if the shareholders found out they were presented with false reports. The shareholders could base decisions of off of this information. For example if one the shareholders do not like the fact that the company is focusing on the South African Operations then the shareholder could...