Suppose that you are the division controller and you receive instructions from the division manager to accelerate the recognition of some expenses that legitimately belong to a future period. What would you do?
2007-11-02 13:51:09 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
And what should I do. I know it's wrong because it's ethics based but i don't know why.
2007-11-02 15:33:24 · update #1
It's wrong because you'd then show accounts which are not true and fair. That's why you won't do it.
2007-11-03 23:18:44 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
This is an ethics question- as a controller, you should not accelerate the recognition of expenses that belong in a future period- it's against GAAP!
2007-11-02 20:59:53 · answer #2 · answered by Kelly 2 · 0⤊ 0⤋
First of all, they're referring to fixed expenses. Depending on the business, this could be a mortgage, property taxes, estimated utilities...basically costs that will not fluctuate greatly, if at all, before said period arrives.
2007-11-02 20:58:22 · answer #3 · answered by jenbosslady 3 · 0⤊ 0⤋