Ethical Discussions Assignment | Homework for You

Conservative Accounting in the General Products Division

Don't use plagiarized sources. Get Your Assignment on
Ethical Discussions Assignment | Homework for You
Just from $13/Page
Order Now

This case was written to motivate an ethical discussion of earnings management activities. The example presented here is different from most of those discussed because the earnings management activities described in the case decrease income. That is, the accounting is conservative. Conservatism makes us conclude the actions are ethical. But aren’t managers ultraconservative merely because they want to “save” profits they can turn in a later accounting period if needed.Homework For You


Do you approve of Robert’s actions? Are they smart or stupid from the perspective of the division? From the perspective of the corporation?
Are Robert’s actions ethical?
Should Joanne tell anyone of Robert’s request?

The year 2000 was a good one for the General Products Division (GPD) of Altman Industries, Inc., a large industrial products manufacturer. Sales and profits in the division were significantly above plan due largely to unexpectedly brisk sales of a new product introduced at the end of 1999. The good fortune induced Robert Standish, the GPD general manager, to think about how he could save some of the profits for periods in which he might need them more. He believed that GPD’s plan for 2001 would be tough to achieve because the corporation as a whole was not doing well, and corporate managers would expect GPD to show growth even above this year’s abnormally high sales and profit levels. And already in September, he was sure that his division’s profit would exceed the level above which no additional bonuses were awarded for higher performance-120% of plan-and he wanted to save some of this year’s profits so that he could report them in a year in which they would augment his bonus and those of his direct reports.

Robert asked his staff to do what they could before the end of the year to “stash some acorns” that he could use in future years. He suggested to Joanne, his controller, that she start preparing the pessimistic scenarios that could be used to justify the creation of additional reserves and start thinking about how expenses could be accelerated and revenues deferred at year-end.

Joanne was uncomfortable. She reminded Robert that among the company accounting policies was a statement that assets and reserves should be fairly reported based on the existing facts and circumstances and not be used to manage income. Furthermore, because of continuing order declines, the company was looking for ways to report higher, not lower, profits in the current year and that if the situation did not turn around quickly, layoffs were threatened.

But Robert explained that GPD would still be reporting very high profits; he just wanted to save a portion of the excess above plan. And in any case, GPD couldn’t help the corporation much because it was so small in comparison with the entire corporation.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Samples

Our writers complete papers strictly according to your instructions and needs, no matter what university, college, or high school you study in.

All samples
Analysis (any type)
Argumentative essays
Dissertation/Dissertation chapter
Analysis (any type)
Advantages and disadvantages of lowering the voting age to thirteen
Undergrad. (yrs 1-2)
Political science
View this sample
Argumentative essays
Is euthanasia ethical or not?
Undergrad. (yrs 3-4)
View this sample
Dissertation/Dissertation chapter
Videoconferencing as a teaching tool
Undergrad. (yrs 3-4)
View this sample

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.


Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.


Admission and Business Papers

With, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.


Editing and Proofreading has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.


Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.

Sitemap: User-agent: * Allow: / User-agent: AhrefsBot Crawl-Delay: 1 User-agent: SemrushBot Crawl-Delay: 1