Page 26 - SBR Integrated Workbook STUDENT S18-J19
P. 26
Chapter 2
Example 1
Ethics
The directors of Terracotta have purchased investment properties. The finance
director has decided that the investment properties will be measured using the
fair value model. It is highly likely that property prices will rise over time. The
directors receive a bonus each year based on profit before tax.
Discuss the ethical issues raised by the directors’ decision.
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