Skip to content

ACCA Strategic Professional · Strategic Business Reporting (International) · Professional and ethical behaviour in corporate reporting

Tomas is the group financial controller of Bexley Co. He is asked to review a complex hedge accounting treatment under IFRS 9, an area where he has no training and no access to technical support. His manager says the deadline cannot move. Which fundamental principle is Tomas most at risk of breaching if he signs off the treatment without further action?

Professional competence and due care is at risk. The principle requires accountants to have the knowledge and skill needed for the work and to act diligently under applicable standards. Approving a complex IFRS 9 hedge treatment without training or support risks breaching it, as no bias or confidentiality issue arises.

  1. AObjectivity
  2. BProfessional competence and due careCorrect
  3. CConfidentiality
  4. DIntegrity in the sense of dealing fairly with colleagues

Explanation

This principle requires maintaining professional knowledge and skill at the level needed and acting diligently in accordance with standards. Signing off work beyond his competence without help risks breaching it. Objectivity concerns bias or conflict of interest, which is not described.

Did you get it right without looking?

One question tells you little. A timed set on Professional and ethical behaviour in corporate reporting shows your real accuracy, how long you take and where you lose marks.

Practise Professional and ethical behaviour in corporate reportingFree diagnostic mock

More Professional and ethical behaviour in corporate reporting questions