Question

1. For orders received late in June, owner Karen Pittard decides when to deliver goods. If profits are already at an acceptable level, Pittard delays delivery until July, the next financial year. If profits for the current year are lagging expectations, Karen delivers goods during June. As PC’s accountant you have been asked if under PC’s FOB policy, this is acceptable practice of recording sales.

Question: Use the stakeholder analysis framework described in accounting information systems, to analyze if there is an ethical dilemma for Pittard with reference to accounting standards, disclosure and any laws applicable. v

Answer 1

	Areas of interest	What is considered valuable (Business Ethics)	What is considered valuabe	Hopes and aspirations for the future	Fears and concerns for the firm
Accountant		According to business rules and ethics the things should be disclosed acccording to the disclosure of Accounting policies AS1 , and revenue recognition AS -9	How the product delivery will be and how would be quality of sales , as the quality control should be the complete responsibility of the manufacturer and then only the profits will be generated and then only the firm will prosper	For co-operation the results must be positive and satisfactory to the stake holder .	The fears and the concerns of the firm is basically the profitablityand customer satisfaction so the accounting standards should be justified according to the firm .
Stakeholder ( Receiver )		The receiver ie the customer should be aware regarding all policies of the firm how are recordings of the sales done . Which methodology is being used by the firm how would the shipping charges and all be paid and who is responsible for all this .	The stakeholder will definitely keep in consideration regarding the given points so that he may place the orders always with the given firm .	The Compnay policies should be satisfactory in order to maintain healthy relationships .	the concerns of the stake holder should be kept in the consideration and then the policies should be framed so as to get the customer satisfaction.