1ST PARAGRAPH:
Review GAAP briefly and then discuss why it is important to have a governing set of principles for accounting practices. Provide examples to support your ideas.
2ND PARAGRAPH:
Provide examples from personal experience or recent events about governing principles.
3RD PARAGRAPH:
Review case study C10-7 (“Ethics and Construction Costs”) in Intermediate Accounting: Reporting and Analysis. Imagine that you are the accountant approached by the CEO in this scenario. How would you reply to the CEO? Consider the following:
• Are there any issues or concerns from a financial reporting perspective?
• Are there any issues or concerns from an ethical perspective?
4TH PARAGRAPH:
Discuss similarities and differences in your approaches to this issue.