Promoting Ethical Judgment in Organisational Context †MyAssignmenthel

Question: Discuss about the Promoting Ethical Judgment in Organisational Context. Answer: Introduction: The chairperson of the IASB argue that former accounting standard for leases was no level playing field for some of the airlines companies as the previous standards lack comparability. In addition to this, it can be inferred that financial obligations will look different, even, though, they are similar in reality. Due to this reason, there is a huge need for change of accounting standards of IASB in order to solve these kinds of issues. In addition to this, with the help of new accounting standards, the organization can easily recognize short term assets and liabilities in an effective manner. This will further help the organizations to recognize and minimize operational costs. In addition to this, it can be inferred that this will help the management of the organizations to maximize comparability among the other organizations. The chairperson of IASB argued that the new accounting standards will not be popular for everyone as different cosmetic accounting benefits will disappear and leases will appear as a source of income for others. In addition to this, it can be also inferred that the real business benefits of leasing will appear the same once the new accounting standards are being implemented. On the other hand, this will help the firm to understand economics in a better manner. However, this may not be suitable for the organizations as the given changes can be considered as extremely controversial for some of the organizations. The chairperson of IASB argued that the new accounting standards will help the investors at large to make better investment decisions. In addition to this, it can be also inferred that there will be a proper balance between lease and buying decisions by the management of any business organizations. This is mainly because of the fact the costs will be minimum and the organizations will not be able to recognize assets and liabilities for short term purpose. In addition to this, the risks will be minimized and the firm will enjoy a risk free environment. Bibliography Christ, K.,amd burritt, R. 2013)=. Professional accounting bodies: Scoping options for sustainability.RELEVANCE AND PROFESSIONAL ASSOCIATIONS IN 2026. Cohen, S. 2013. Promoting ethical judgment in an organisational context.Journal of business ethics,117(3), 513-523. DRURY, C. M. 2013.Management and cost accounting. Springer.