One thing I noticed first is that you are suggesting of adding the
2015 interest capitalization in with the 2016 report. This is not
acceptable per GAAP standards and Accountants have an obligation
to stand up to these standards. We started construction for our
building in 2016 so we will not be able to capitalize in 2015.
Capitalization starts when construction has started for the building.
Overhead costs are the expenses that are not related to direct labor
or materials. My salary falls under administrative expenses or salaries
which does not qualify as overhead cost. We would not be able to
put that under our overhead costs.
I would let the CEO know that these recommendations are unethical
and we cannot falsely report on our financial statements.
References
Tuovila, A. (2021, Aug). Overhead.
https://www.investopedia.com/terms/o/overhead.asp
Whalen, J. M., Jones, J. P., & Pagach, D. P. (2017). Intermediate
Accounting: Reporting and Analysis. Boston, MA: Cengage Learning.
