Management accountants and financial accountants are obliged to maintain the highest standards of ethical conduct to the public, their profession, themselves besides to the organizations they serve. To achieve this, they would have to make some decisions wisely based on competence, integrity, confidentiality and objectivity. (Kubr, 2002)

  1. In the given case, some items are in line with the codes of ethics while others grossly violate the codes. Among those that area accepted by the codes include: stop all transatlantic shipping, selling off distributing equipment prior the end of the financial year. Establishment of corporate headquarters in Ireland before the end of the year. Recognizing revenues on orders received but not shipped by the company. Making deep cuts through the end of the year in a bid to generate additional income, pressuring customers to take an early delivery before the end of the year are some of the items that violate the codes.(Kubr, 2002) Recording the executive end of the year compensation for the current year in the next financial year also violates the codes of ethics.
  2. The management accountant should discuss with the top management and the parties involved to clarification the unethical issues. Among those involved in the discussion should be an objective advisor that would give a better explanation of the organization. (Kubr, 2002) The management accountant and the advisor will then give advice on the next course of actions to the company. The management accountant may also report the issues to the immediate superior level where he explains to the management of the violation of the codes. In case the immediate level may not be in a position to assist or sort out the issue then it’s taken a step further which involves moving to the subsequent superior level. Through such discussions, the erotic decisions are corrected amicably.