Question 2 - Part b

In this lesson

1. 0:00 Part B: Identifying ethical issues
2. 0:36 ACCA Code of Ethics and member obligations
3. 1:42 Self-interest threat from profit-related bonus
4. 2:22 Lease accounting and operating income inflation
5. 3:32 Credit losses presentation and bonus manipulation
6. 4:31 Sustainability reporting accuracy and investor impact
7. 5:41 Lack of integrity and intimidation concerns
8. 6:47 Actions: discussion, escalation, and advice seeking
9. 7:59 Ethics exam strategy and common patterns

About this lesson

You'll work through a practical example involving a finance director facing self-interest threats from a profit-related bonus, examining how incorrect accounting treatments (lease receipts, credit loss presentation, and sustainability reporting) violate ethical principles. The lesson walks you through the structured approach: recognise the threat, explain how it affects profit and integrity, then outline the actions the accountant should take—from discussing with the FD, to escalating to other directors, seeking ACCA advice, and documenting everything. This framework applies to every ethics question you'll encounter, so mastering it now will build your confidence across ACCA papers that test professional conduct and judgment.

Duration: 9m