You are a young ambitious accountant working for ABS Corp. At the end of the financial year shortly after your appointment the president of ABS, who is a friend of your father, instructs you; (a).not to record accrued wage expenses until next year 'because they won't be paid until then' and; (b) to record in this year's sales an order that will not be delivered until next year 'because the customer placed the order this year. ABS would report a net income instead of a net loss if these instructions were carried out. using the guidelines provided in our course textbook (extract below) dentify ethical concerns, analyze the situation and explain what you would do. Ethics-A Key Concept The goal of accounting is to provide useful information for decisions. For information to be Explain why ethics are ountinguseful, it must be trusted. This demands ethics in accounting. Ethles are beliefs that distinguish right from wrong. They are accepted standards of good and bad behavior Identifying the ethical path is sometimes difficult. The preferred path is a course of action avoids casting doubt on one's decisions. For example, accounting users are less likely to trust an auditor's report if the auditor's pay depends on the success of the client's business. To avoid such concerns, ethics rules are often set. For example, auditors are banned from direct Polnt: Sarbanes-Oxley Act requires each a ssuer of secunties to disclase whether it has cial officers ndopted a code of ethics for is senior fhan investment in their client and cannot accept pay that depends on figures in the client's reports. and the contents of thet code Exhibit 1.6 gives guidelines for making ethical decisions. EXHIBIT 1.6 Guidelines for Ethical Decision Making Identify ethical concerns Analyze options Make ethical decision Use personal ethics to recognize an ethical concerm. Consider all good and bad consequences Choose best option after weighing all consequences Providers of accounting information often face ethical choices as they prepare financial reports. These choices can affect the price a buyer pays and the wages paid to workers. They can even affect the success of products and services. Misleading information can lead to a wrongful closing of a division that harms workers, caustomers, and suppliers. There is an old saying: Good ethics are good business