SBR syllabus

Jassie  Co  uses  Big  Data  analytics  and  various  algorithms  in  order  to  indicate  the  potential  of   finding oil in a particular geographical location.

The chief  data officer understands the science and statistics, and can explain outcomes simply and clearly to customers.

The finance director, Mr Betso, who is ACCA qualified, has little knowledge of  the technology involved.

He feels that the technology used is too complex and there is no need for him to understand it as long as the chief  data officer understands it. The chief  data officer reports to the finance director

What are the Ethical Issues here?

Recently, the outcome of one set of data showed that there was little chance of  oil being found on one of  the sites but the finance director insisted that the data was run again to include historical data which would then indicate a more favourable outcome for a customer, Olio Co

What are the ethical issues here?

Mr Betso has a friend, Ms Stylos, who works as the accountant at Olio Co.

Ms Stylos has asked Mr Betso for advice as to how to account for the licence granted to Olio Co.

Mr Betso suggested that Ms Stylos use IFRS 16 Leases as it is a right-to-use licence

What are the Ethical Issues here?

In addition, Mr Betso knew that Ms Stylos held shares in Olio Co and suggested to her that the share price of Olio Co was likely to fall because there was little chance of oil being found as a result of the granting of  the licence.

What are the Ethical Issues here?