FAMILIARITY IN BUSINESS The main goal of a business is to .make profit. Nevertheless, how do business owners relate with related parties? A related party is said to be anyone who is or are capable to influence the decision of the business owner. Familiarity Being too familiar with a business might bring about a slight influence on the prices of goods of that particular company. It implies that the related party might purchase goods at a reduced price compared with the regular prices of each goods. Familiarity in business might also influence the decision make of that particular company. Decision might be altered to suit the familiar partner. The question is, is it advisable to employ a related party?
An asset according to IAS 16 defined it has a resources controlled by an entity in which there will be an economic outflow. Goodwill is defined has the excess over the fair value. According to IAS 38 (Intangible asset) it is defined as asset without physical substance. If an assets meets IAS 38 criteria, it is treated as a non current asset in the financial statement. Internally generated Goodwill are prohibited under IAS 38.Is Goodwill An Asset
ETHICS: IS TIPPING OFF/ BEING TIPPED OFF ETHICAL? Various school of thought has so many definitions as regards ethics. In modern society, people tend to neglect what ethical value is. Talking about tipping off, take for instance an Accountant. Is it ethical for an Accountant to be tipped off by a client? Well, ethically, an accountant is not allowed to be tipped off by a client. When an accountant is tipped off it could lead to a threat to Accountant code of conducts. Take for example, Familiarity Threat. Familiarity in the sense that the accountant might become too familiar with the client and maybe forced into advocacy. As an accountant, being tipped of might be against the code of conduct of the practice. Nevertheless, an accountant might tip government off when issue as regards money laundering. An accountant is required by law to do so.
Comments
Post a Comment