Ogilvie Homes is a business owned by Joe Ogilvie. The accounting for this business is done by Joe's sister Leigh. Leigh is currently preparing the 2013 year end financial statements which Joe will use for three purposes:
1. to submit with his tax returns;
2. to support a loan application; and
3. to help him evaluate the success of the business.
Instructions
a. For each of the three purposes identified, describe the information needs the user will fulfill based on Ogilvie Home's financial statements.
b. Leigh has suggested that she can help Joe out by recording some January 2014 revenue in December 2013. She feels this is reasonable because it is just a slight timing difference and so "not really dishonest". Comment on the ethical implications of this suggestion and explain how each of the three users' needs may be affected if Leigh implements her suggestion.

Question

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The Answer of Ogilvie Homes is a business owned by Joe Ogilvie. The accounting for this business is done by Joe's sister Leigh. Leigh is currently preparing the 2013 year end financial statements which Joe will use for three purposes:
1. to submit with his tax returns;
2. to support a loan application; and
3. to help him evaluate the success of the business.
Instructions
a. For each of the three purposes identified, describe the information needs the user will fulfill based on Ogilvie Home's financial statements.
b. Leigh has suggested that she can help Joe out by recording some January 2014 revenue in December 2013. She feels this is reasonable because it is just a slight timing difference and so "not really dishonest". Comment on the ethical implications of this suggestion and explain how each of the three users' needs may be affected if Leigh implements her suggestion.

Ogilvie Homes Is a Business Owned by Joe Ogilvie