ETHICAL DECISIONS DECISION 1: MICROSOFT CORPORATION IS THE DEFENDANT IN NUMEROUS LAWSUITS CLAIMING UNFAIR TRADE PRACTICE

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ETHICAL DECISIONS
DECISION 1: MICROSOFT CORPORATION IS THE DEFENDANT IN NUMEROUS
LAWSUITS CLAIMING UNFAIR TRADE PRACTICES. MICROSOFT HAS STRONG
INCENTIVES
NOT TO DISLOSE THESE CONTINGENT LIABILITIES; HOWEVER, IFRS AND
ASPE GENERALLY REQUIRE THAT COMPANIES DISCLOSE THIER CONTINGENT
LIABILITIES IN
THE NOTES TO THIER FINANCIAL STATEMENTS.
REQUIREMENT
1. WHY WOULD A COMPANY PREFER NOT TO DISCLOSE ITS CONTINGENT
LIABILITIES?
2. DESCRIBE HOW A BANK COULD BE HARMED IF A COMPANY SEEKING A
LOAN DID NOT DISCLOSE ITS CONTINGENT LIABILITIES.
3. WHAT IS THE ETHICAL TIGHTROPE THAT COMPANIES MUST WALK WHEN
THEY REPORT THIER CONTINGENT LIABILITIES?