INTHEBLACK September 2024 special edition - Flipbook - Page 53
MICHELLE CULL FCPA,
WESTERN SYDNEY UNIVERSITY
DEFERRED COSTS
DR BRENDAN O’CONNELL FCPA,
RMIT UNIVERSITY
CONFIDENTIALITY
DR GERARD ILOTT FCPA,
CQUNIVERSITY
GOING INTO
BUSINESS WITH
A CLIENT
Question: “I have had a good
relationship with one of my
clients for many years. Recently,
I helped them launch a new
business. The client has asked if
I would like to go into business
with them. What are the ethical
concerns that need to be
managed?”
“There are quite a few red flags
to look out for in this case, and
I couch my response entirely
in terms of the APES 110
Code of Ethics for Professional
Accountants.”
Question: “The organisation
I work for has a proposed
confidential merger coming
up that only a few key people
in the finance team know
about. At a company-wide
social event, I overheard a
colleague telling someone else
in the organisation about the
merger. What should I do?”
“While you have not breached
confidentiality, you have
overheard the breach occurring.
As a professional accountant,
you cannot just ignore it. You
are obligated to do something
about it. This kind of breach
of confidentiality may have a
wide-reaching impact.”
Question: “I’m a finance
manager working for a
medium-sized manufacturing
company. A large cost occurred
near the end of the recently
ended financial year. I believe it
should be booked in the current
fiscal period, but the CEO wants
to defer the cost to a later
period. The cost doesn’t meet
the recognition for deferment
as it has already been invoiced.
How do I handle this?”
“It is not just about numbers – it
is about maintaining trust and
integrity in your role. While it
can be challenging to stand firm
against pressure, it is essential
to uphold these principles for
your sake and the company’s
long-term health.”
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