The

The Building
Building Blocks
Blocks of
of Accounting
Accounting
Ethics In Financial Reporting
Standards of conduct by which one’s actions are judged
as right or wrong, honest or dishonest, fair or not fair,
are Ethics.
Recent financial scandals include: Enron (USA),
Parmalat (ITA), Satyam Computer Services (IND), AIG
(USA), and others.

Effective financial reporting depends on sound ethical

behavior.

SO 3 Understand why ethics is a fundamental business concept.

The
The Building
Building Blocks
Blocks of
of Accounting
Accounting
Ethics In Financial Reporting

SO 3 Understand why ethics is a fundamental business concept.

The
The Building
Building Blocks
Blocks of
of Accounting
Accounting

Review Question
Ethics are the standards of conduct by which one's
actions are judged as:
a. right or wrong.
b. honest or dishonest.
c. fair or not fair.
d. all of these options.

Solution on
notes page SO 3 Understand why ethics is a fundamental business concept.
The
The Building
Building Blocks
Blocks of
of Accounting
Accounting

Accounting Standards

International Accounting Standards Board (IASB)

http://www.iasb.org/

International Financial Reporting Standards (IFRS)

Financial Accounting Standards Board (FASB)

http://www.fasb.org/

Generally Accepted Accounting Principles (GAAP)

SO 4 Explain accounting standards and the measurement principles.