Answer
Accountants must perceive the moral dimensions of some situations because GAAP does not define or cover all specific features that are to be reported in financial statements. In these instances accountants must choose among alternatives. These accounting choices influence whether particular stakeholders may be harmed or benefited. Moral decision-making involves awareness of potential harm or benefit and taking responsibility for the choices.
Work Step by Step
Because the GAAP does not stipulate steps to be taken on each issue, especially where there are unique company issues, accountants are placed in constant dilemmas, which may force them to be bias when making a decision.
