In the US in the 1970s Lockheed Aircraft Corporation paid USD $12.5 million in 'fees' to All Nippon Airways (ANA) to secure the sale of 21 Tristar aircraft. Carl Kochian, the president of Lockheed at that time, defended his actions with reference to the following:
Bribery was common and expected in Japan in the 1970s. Kochian did not initiate the payment. He was asked to make the payment.
Required:
Discuss the accounting and ethical issues involved in this case.

Question

In the US in the 1970s Lockheed Aircraft Corporation paid USD $12.5 million in 'fees' to All Nippon Airways (ANA) to secure the sale of 21 Tristar aircraft. Carl Kochian, the president of Lockheed at that time, defended his actions with reference to the following:

Bribery was common and expected in Japan in the 1970s. Kochian did not initiate the payment. He was asked to make the payment.
Required:
Discuss the accounting and ethical issues involved in this case.

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The Answer of In the US in the 1970s Lockheed Aircraft Corporation paid USD $12.5 million in 'fees' to All Nippon Airways (ANA) to secure the sale of 21 Tristar aircraft. Carl Kochian, the president of Lockheed at that time, defended his actions with reference to the following: Bribery was common and expected in Japan in the 1970s. Kochian did not initiate the payment. He was asked to make the payment. Required: Discuss the accounting and ethical issues involved in this case.

In the US in the 1970s Lockheed Aircraft Corporation Paid