Ethics
Accounting glossary · Understand, connect, apply
Ethics in accounting means applying principles such as honesty, integrity, objectivity and professional responsibility when preparing or using financial information.
Example
An accountant reports an error even when correcting it makes the year’s profit lower.
Remember the difference
An action can be technically permitted yet still raise ethical concerns. Consider conflicts of interest and the effect on users.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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