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Help, ethics question on incorrect IFRS 16 treatment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Help, ethics question on incorrect IFRS 16 treatment

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Ken Garrett.
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  • June 25, 2020 at 9:42 pm #574705
    eagledave
    Participant
    • Topics: 23
    • Replies: 294
    • ☆☆☆

    Hi, what would you do in this situation? At IFRS 16 transition, the company transitioned lower level of their leases than they should have by re-assessing contracts and scoping out short term and low value leases. However, it was later found that they should not have scoped out those leases as they did not really meet the criteria for exemptions. The final accounts are now about to be signed off. This is clearly an accounting error.

    The head in a finance department is hesitant to admit this mistake for the reason that the accounts have already been audited and they did not find that error as well as he does not want to compromise his position. As an accountant, what would be the ethical and correct way to deal with this situation? The head is making all possible ways to make me shut up through blackmail and scare tactics by saying I am on a probationary period and also picking on little things. She is asking me to treat future leases following her judgement which is clearly wrong.

    PLEASE HELP!

    June 26, 2020 at 6:06 am #574713
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    The theoretical approach to ethical conflicts is set out on P19 of our notes.

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