CA. Rohan, an employee of Delta Ltd., discovers that the CFO has instructed him to capitalise a routine repair expense of ₹ 50 lakhs as an asset so…
CA Final · Financial Reporting · MTP · November 2026
CA. Rohan, an employee of Delta Ltd., discovers that the CFO has instructed him to capitalise a routine repair expense of ₹ 50 lakhs as an asset so that the current year's profit appears higher, ahead of a rights issue. Rohan complies without raising any objection, even though he privately disagrees with the treatment. Which fundamental principle has Rohan primarily failed to uphold by silently complying?
Suggested Answer and Working Notes:
Correct Answer: Option (D)
Basis: Fundamental Principles of Code of Ethics. Integrity requires being straightforward and honest in all professional and business relationships. Complying with false capitalization instructions directly compromises integrity.
Topics: General
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