CA16-2 (Ethical Issues—Compensation Plan) The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criteria of this plan is linked to growth in earn- ings per share. When annual EPS growth is 12%, the Rouse executives earn 100% of the shares; if growth is 16%, they earn 125%. If EPS growth is lower than 8%, the executives receive no additional compensation.

In 2014, Joan Devers, the controller of Rouse, reviews year-end estimates of bad debt expense and warranty expense. She calculates the EPS growth at 15%. Kurt Adkins, a member of the executive group, remarks over lunch one day that the estimate of bad debt expense might be decreased, increasing EPS growth to 16.1%. Devers is not sure she should do this because she believes that the current estimate of bad debts is sound. On the other hand, she recognizes that a great deal of subjectivity is involved in the computation.

Instructions

Answer the following questions.

(a)What, if any, is the ethical dilemma for Devers?

(b) Should Devers’s knowledge of the compensation plan be a factor that influences her estimate?

(c)How should Devers respond to Adkins’s request?

-What are the differences in EPS presentation between IFRS and GAAP?

You have previously selected the discipline you will be researching; now, it is time to write the first portion of your training materials. Prepare an executive summary about the HR discipline you have selected. Later, this can be used as part of your design for your speaker notes for your final training materials. Remember to include the following in your summary:

• A discussion of the theoretical basis for the HR discipline
• Data or statistics related to the use of the discipline in organizations
• The benefits of this discipline
• Real-world examples from organizations
• Professional certification
• Other information that is relevant to having senior leaders understand the discipline

You must include a minimum of 4 scholarly references.