As a professional accountant, you adhere to the code of ethics set forth by the International Federation of Accountants (see Appendix 1A). Keeping the IFAC Code in mind, determine if there are any clear ethical considerations in the following scenarios:

a. Cleo Patra is the managerial accountant for a multinational company. An industry stock analyst has invited her to spend two weeks in Aruba at no cost to her. In return for this favour, Cleo would send him any financial press release before it became public.

b. Your company is a large multinational highly esteemed by investors. The shares are overpriced in your opinion. As the managerial accountant, you know that the company’s earnings cannot sustain investor expectations, and you believe that the share price will fall dramatically within the next year. Your parents are thinking of investing a large part of their retirement income in the company. Do you tell them not to, on the basis of what you know?