Principles of Accounting: Ethical Issues and Stakeholder Analysis

Principles of Accounting

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CASE STUDY 1..............................................................................................................................3
Identification of stakeholders.......................................................................................................3
Analysis of decision-making of manager....................................................................................4
Ethical issues................................................................................................................................4
Can deferring revenues and accruing expenses be ethical?.........................................................5
CASE STUDY 2..............................................................................................................................6
Identification of stakeholders.......................................................................................................6
Ethical issue evaluations..............................................................................................................7
Actions that could have been taken.............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Accounting principles are rules and regulations which the organization follows for
reporting the financial information. Ethics and governance are the core components of the
knowledge which is based on the skills of the professional accountants. In this project two
different scenarios will be evaluated for answering the financial regulations of the company. This
project will help in the identification of the stake holders from the given scenario. It will help in
analysing the decisions made by the management for the financial information. This project will
also help in the identification of the ethical issue involved in both the scenarios. In this project
recommendations towards the situations will also be done for finding ways of improving them.
MAIN BODY
CASE STUDY 1
Identification of stakeholders
The stakeholders of Vroom Ltd are the people or groups that rely on the financial
information of the organization for making decisions. They have interest in the entity for the
business and are very influential in changing the decision-making of the organization. For this
organization the stakeholders are the following,
Shareholders :
These are the individuals or groups which have invested in the business of Vroom Ltd.
This organization is owned by an internation car firm which owns the shares of this company. As
they have invested their money into Vroom Ltd they are entitled to have interest as they are also
those stakeholders which are at the risk of losing all their money through the business (Kirwan,
Maye and Brunori, 2017).
Employees :