Chapter 10, Problem 10.1EI

1.

To determine

Ethical Issue

Case Summary: Because of the recent mortgage crisis, number of banks reported loss in their mortgage receivable accounts, and other assets on the basis of fall in the fair value of the assets.

To Identify: The effect to the stakeholders if such losses were not reported in a timely way

2.

To determine

To Ascertain: If there is any ethical issue involved when the business chooses not to report the losses.