Professional Documents
Culture Documents
Joe Reyes, an accountant employed by the resort and a personal acquaintance of the owner, has been
asked by Aiza to include P200,000 of unearned guest deposits in the computation of this years income.
Joe explained to Aiza that because these deposits had not yet been earned, they should be reported in
the statement of financial position as liabilities, and not in the income statement as revenues. He further
explained that reporting guest deposits as revenue would inflate this years income and may mislead
investors. Aiza then demanded that Joe include P200,000 of unearned guest deposits in the
computation of income or be fired. She then told Joe in an assuring tone, Joe, you will never be held
responsible for misleading potential investors because you are just following my orders.
Guide Questions:
1. Who are the stakeholders (affected parties) in this situation?
2. What is/are the ethical issue/s in this case?
3. If you were Joe, would you follow the owners orders in order to retain your job? Explain.
4. Is Aiza correct that Joe cannot be held responsible for misleading potential investors? Explain.
5. What would you have done differently, if any? (You may look at this from any
characters/stakeholders perspective.)
Format:
Short bond paper (8.5x11)
1.5 paragraph line spacing
One inch margin on all sides
One page only
Font: Tahoma 11
Deadline: February 22, 2017 (MW class); February 23, 2017 (TH class)
The heading and content of the submitted case analysis are as follows:
SURNAME, GIVEN NAME M.I. ACCTBA1 Section___
ID# Date