Companies use off-balance sheet accounting so that they do not have to include certain assets and liabilities in their financial statements. Off-balance sheet accounting is often used to make the balance sheet look like the company has less debt than it actually does. One method used by companies to achieve off-balance sheet accounting is classifying capital leases as operating leases.
Singer, R., Winiarski, H., & Coleman, S. (2020). Accounting for sale and leaseback transactions. Journal of Accountancy.
Explain to what extent the corporation’s shareholders might feel the corporation breached any measures of an entity of the highest ethical standards.
Explain to what extent the corporation’s board of directors might ever feel that management breached any measures of an entity of the highest ethical standards.
Use at least two of the ethical viewpoints as presented in ethical approaches to provide the ethical reasoning to address your company’s use of off-balance sheet accounting and managements profiting from the arrangement. Specify the approaches you use.
Assess Investment Options.
Companies use off-balance sheet accounting so that they do not have to include certain assets and liabilities in their financial statements. Off-balance sheet accounting is often used to make the balance sheet look like the company has less debt than it actually does. One method used by companies to achieve off-balance sheet accounting is classifying capital leases as operating leases.
Singer, R., Winiarski, H., & Coleman, S. (2020). Accounting for sale and leaseback transactions. Journal of Accountancy.
Explain to what extent the corporation’s shareholders might feel the corporation breached any measures of an entity of the highest ethical standards.
Explain to what extent the corporation’s board of directors might ever feel that management breached any measures of an entity of the highest ethical standards.
Use at least two of the ethical viewpoints as presented in ethical approaches to provide the ethical reasoning to address your company’s use of off-balance sheet accounting and managements profiting from the arrangement. Specify the approaches you use.