Question

explain the ethnic dilemma behind an accounting accepting "favours" in a contract and capitalizing or expense out any the development costs.

Answer 1

The rules of the accounting profession represent one such attempt to codify principles that apply to particular group of people engaged in common activity. The real point to be made is ,as professionals cannot rely exclusively on their rules to define who they are and what they will do when traversing the ethical landscape. Rules are rough and ready guide when issues are clear. But they to let us down whenever we are faced with a genuine ethical dilemma .To refer back to the beginning of this paper, it is in precisely such circumstances that you need to dig a little deeper. At a certain depth the challenge is to look at ethics from the point of view that demands answers to the hat sort of community do I want to help create ? Why is it that some types of unethical behaviour appear worse than others ? For example nearly everybody would be in high dudgeon at the thought of an accountant misappropriating funds from a children's charity. Yet it is difficulty to generate the same ire when discussing an accountant who connives in creative accounting designed to help a small business to complete the tax return. To be a member of a profession is to be a member of a community. Ethical issues are not restricted to matters arising in relationships with clients and the community. There is also the very real question of how accountants relate to one other. To return to the question of the ethical dilemma. It is perhaps an unfortunate fact of life for us that there really are circumstances in which no system of rules can provide us with a sure and uncontroversial answer. On the other hand, it may be that the existence of ethical dilemma provides us with two great boons. An opportunity to exercise our freedom and sense of personal responsibility and also to engage with others in exploring and developing traditions that provide guidance to communities. The following fundamental ethical principles needs to be followed in accounting practices : a. Integrity : Your integrity will be questioned if you follow a course of action that you have doubts about. You need to be able to satisfy yourself that you are issuing an appropriate about opinion ould be fair and must not be disposed. They should maintain impartiality They should be free of any interest. C. Confidentiality : They should maintain confidentiality of information acquired. d. Skill and competence : They should work with due professional care. e. Professional behaviour: They need to show professional courage and ensure that the most appropriate audit opinion is issued in the circumstances. Ethical dilemma is choosing a decision right and right. Ethical dilemmas are also knows as moral dilemmas are situations in which there is a choice to be made between two options, neither of which resolves the situation in an ethically acceptable fashion. Ethical dilemmas assume that the chooser will abide by societal norms, such as codes of law or religious teachings in order to make the choice ethically impossible.