Accounting ethics question about computing interest?

Question

First, I can't tell whether or not the book is saying it's ok to compute intrest on both of the below. Second, if it is an acceptable practice, isn't it still double dipping?? Which would be unethical anyway?

Neka Kiser, vice president of operations for Mountain National Bank, has instructed the bank’s computer programmer to use a 365-day year to compute interest on depository accounts (payables). Neka also instructed the programmer to use a 360-day year to compute interest on loans (receivables).

Answer 1

One method is being applied to deposits, the other to loans.  There is no double-dipping there.

That is only answering part of your question.  Read the book again to see if "in" and "out" need to be calculated using the same method.

Answer 2

Where do you see "double dipping"?  There is no ethical question here.  It is a question of contract law.  The interest MUST be calculated according to the method specified in the contract.  

Note: US regulations require that a bank disclose an APR computed on a 365/366 day year on consumer accounts, regardless of the method actually used.