Read Ethical case
Oscar Gamble, Shields Corporationâ€s Controller is concerned that net income may be lower this year.As a result, he is afraid that upper-level management might recommend cost reductions by laying off accounting staff.The company currently is considering a change in accounting principle related to inventory which would increase earnings.However, this change would be highlighted in the statement of retained earnings as a cumulative effect adjustment and management must prove that the new principle will give a reliable and more relevant financial presentation in the statements.
Instead, he is contemplating increasing estimated useful lives and residual values.That would decrease amortization expense (and increase income).Best of all, this change in estimate will be handled prospectively and not be highlighted in the current and future yearsâ€ financial statements.Oscar thinks this approach could save his job and those of his staff.
Answer the question below:
What would you recommend to Oscar Gamble?
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!Use Discount Code “Newclient” for a 15% Discount!NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
What Students Are Saying About Us.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."