Financial accounting

17. In each of the following scenarios, outline the ethical or potential ethical problem and suggest ways in which it could be resolved or avoided: (a) Your company is about to sign a contract with a repressive regime in South America for equipment which could have a military use. Your own government has given you no advice on this matter. (6) Your company is in financial difficulties and a large contract has just been gained in partnership with an overseas supplier who employs children as young as seven years old on their production line. The children are the only wage earners for their families and there is no welfare available in the country where they live. (c) You are the accountant in a large manufacturing company and you have been approached by the manufacturing director to prepare a capital investment proposal for a new production line. After your calculations the project meets none of the 335 criteria necessary to allow the project to proceed but the director instructs you to change the financial forecast figures to ensure the proposal is approved. (d) Review the last week's newspapers and select three examples of failures of business ethics and justify your choice of examples. (e) The company deducts from the monthly payroll employees compulsory contribution to their superannuation accounts, The payment to the superannuation fund, which also includes the company's matching contribution is being made only monthly because the cash flow of the company is tight following rapid expansion ncial accounting