The Main Emphasis of the Individualism View of Ethical Behaviour

question 11

Multiple Choice

The main emphasis of the individualism view of ethical behaviour is:

• A) ensuring that people's rights are protected and respected.
• B) assessing the implications of a decision in terms of its long-term personal consequences.
• C) promoting honesty and integrity.
• D) evaluating a decision on the basis of its impartiality and fairness.
• E) ensuring that the greatest number of people benefit to the greatest extent possible.

Differentiate between the conceptual frameworks of IASB/FASB and FASB in terms of qualitative characteristics.

Comprehend the primary user groups and constraints in financial reporting as identified by IASB and FASB.

Elucidate the benefits of having a conceptual framework in financial accounting and reporting.

Understand the concept of interperiod and intraperiod tax allocation.

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Definitions:

Time Horizon

The length of time an investor expects to hold an investment before taking money out.

Bond Portfolio Immunization

A strategy to minimize the impact of interest rate fluctuations on the market value of a bond portfolio by matching the portfolio's duration with the investor’s investment horizon.

Price Risk

The risk that the price of a financial asset will fluctuate, affecting the profit or loss of an investment.

Reinvestment Risk

The risk that future proceeds will have to be reinvested at a lower potential interest rate.