When the International Accounting Standards Board issues new standards, the implementation date is usually twelve months from the date of issuance, with early implementation encouraged. Boatemaa, the financial controller, discusses with her financial vice president the need for early implementation of a standard that would result in fair presentation of the companys financial condition and earnings. When the financial vice president determines that early implementation of the standard will adversely affect the reported net income for the year, he discourages Boatemaa from implementing the standard until it is required.

a. What, if any, is the ethical issue involved in this case?

b. Is the financial vice president acting improperly or immorally?

c. What does Boatemaa have to gain by advocacy of early implementation?

d. Who might be affected by the decision against early implementation?