Chat Now Available 24/7
Log in
Chat Now
Log in
Order Now

Order For Similar Custom Papers & Assignment Help Services

Fill the order form details - writing instructions guides, and get your paper done.

Check Prices
Order Now

Posted: March 3rd, 2022

Case 1-6 Capitalization versus Expensing

Case 1-6 Capitalization versus Expensing

Ethical obligations of a controller when pressured by the CFO to capitalize costs that should be expensed.

Gloria Hernandez is the controller of a public company. She just completed a meeting with her superior, John Harrison, who is the CFO of the company. Harrison tried to convince Hernandez to go along with his proposal to combine 12 expenditures for repair and maintenance of a plant asset into one amount ($1 million). Each of the expenditures is less than $100,000, the cutoff point for capitalizing expenditures as an asset and depreciating it over the useful life. Hernandez asked for time to think about the matter. As the controller and chief accounting officer of the company, Hernandez knows it’s her responsibility to decide how to record the expenditures. She knows that the $1 million amount is material to earnings and the rules in accounting require expensing of each individual item, not capitalization. However, she is under a great deal of pressure to go along with capitalization to boost earnings and meet financial analysts’ earnings expectations, and provide for a bonus to top management including herself. Her job may be at stake, and she doesn’t want to disappoint her boss.

Questions

Assume both Hernandez and Harrison hold the CPA and CMA designations.

What are the loyalty obligations of both parties in this case?
Assume that you were in Gloria Hernandez’s position. What would motivate you to speak up and act or to stay silent? Would it make a difference if Harrison promised this was a one-time request?
What would you do and why?
Read the case and write 5-7 page executive summary on the case, including answers to the following questions.

Describe the legal and ethical issues surrounding the case.
What are the loyalty obligations of both parties in this case?
Assume that you were in Gloria Hernandez’s position. What would motivate you to speak up and act, or keep silent? Would it make a difference if Harrison promised this was a one-time request?
What would you do and why?
Case study write-ups follow proper Help write my thesis – APA formatting and integrate Chapter 1: Ethical Reasoning: Implications for Accounting (attached). Well written, proper grammar, and follow Help write my thesis – APA guidelines including references and in-text citations when needed.

Order | Check Discount

Sample Homework Assignments & Research Topics

Tags: ace homework tutors, ace my homework, coca cola company analysis essay, Coca Cola Essay Example, Coca Cola Marketing Concepts

Assignment Help For You!

Special Offer! Get 20-25% Off On your Order!

Why choose us

You Want Quality and That’s What We Deliver

Top Skilled Writers

To ensure professionalism, we carefully curate our team by handpicking highly skilled writers and editors, each possessing specialized knowledge in distinct subject areas and a strong background in academic writing. This selection process guarantees that our writers are well-equipped to write on a variety of topics with expertise. Whether it's help writing an essay in nursing, medical, healthcare, management, psychology, and other related subjects, we have the right expert for you. Our diverse team 24/7 ensures that we can meet the specific needs of students across the various learning instututions.

Affordable Prices

The Essay Bishops 'write my paper' online service strives to provide the best writers at the most competitive rates—student-friendly cost, ensuring affordability without compromising on quality. We understand the financial constraints students face and aim to offer exceptional value. Our pricing is both fair and reasonable to college/university students in comparison to other paper writing services in the academic market. This commitment to affordability sets us apart and makes our services accessible to a wider range of students.

100% Plagiarism-Free

Minimal Similarity Index Score on our content. Rest assured, you'll never receive a product with any traces of plagiarism, AI, GenAI, or ChatGPT, as our team is dedicated to ensuring the highest standards of originality. We rigorously scan each final draft before it's sent to you, guaranteeing originality and maintaining our commitment to delivering plagiarism-free content. Your satisfaction and trust are our top priorities.

How it works

When you decide to place an order with Dissertation App, here is what happens:

Calculate Your Order Check Prices

Complete the Order Form

You will complete our order form, filling in all of the fields and giving us as much detail as possible.

Assignment of Writer

We analyze your order and match it with a writer who has the unique qualifications to complete it, and he begins from scratch.

Order in Production and Delivered

You and your writer communicate directly during the process, and, once you receive the final draft, you either approve it or ask for revisions.

Giving us Feedback (and other options)

We want to know how your experience went. You can read other clients’ testimonials too. And among many options, you can choose a favorite writer.