A SUMMARY OF TO TELL THE TRUTH: A DISCUSSION OF ISSUES CONCERNING TRUTH AND ETHICS IN ACCOUNTING

A SUMMARY OF TO TELL THE TRUTH: A DISCUSSION OF ISSUES CONCERNING TRUTH AND ETHICS IN ACCOUNTING

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A Summary of To Tell The Truth: A Discussion of Issues Concerning Truth and Ethics in Accounting

Ethical concerns are usually imperative factors for consideration within the scope of financial accounting. Over the years, major organizations have faced significant consequences that have resulted from participation in unethical activities. For instance, American corporates, especially those in the 1980s and 1990s encountered significant backlashes that ultimately led to their dissolution. Specifically, the bankruptcy that accompanied Enron and WorldCom offered new insights into the extent to which ethics assumes an important role in the overall scope of financial accounting. The article, To Tell the Truth: A Discussion of Issues Concerning Truth and Ethics in Accounting, provides an enlightening discourse on the respective issues by drawing significant and pragmatic illustrations. Accordingly, Bayou, Reinstein, and Williams cover some of the most covered financial scandals that occurred within the American economy in the 1980s and 1990s (Bayou, Reinstein, and Williams, 2011). With these examples, the authors illustrate the correlation that exists between the mentioned financial swindles and the lack of upholding ethical mores in the field of accounting. In the context of assessing the importance of financial accounting ethics, the article also addresses the complexities that lie in defining the true objective of financial reporting as another imperative aspect of financial accounting. Focus on such uncertainties has provided an understanding on the reasons behind the establishment of various accounting policies. Aside from this, the article’s discussion on the definition of financial accounting objectives has elicited sharp debates based on the contents of other imperative fields within this scope, such as auditing and financial accounting. In this respect, the inclination towards this particular scope in financial accounting offers further insight into the level to which accounting standards have actually interpreted the overall functions of the field within the organization and the society.

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