Accountants have a professional responsibility to report accurate and
transparent financial information. GAAP establishes rules and
guidelines to ensure that companies are providing accurate financial
information. Per our conversation, I have found there it be several
issues with your recent requests, as they do not fall within the
guidelines that have been established by the GAAP.
Since construction of the building did not start until 2016, we are
unable to capitalize on any expenses from 2015, as it was just the
planning phase and no interest was incurred. Increasing the overhead
costs of the building and counting my salary as part of the cost will
result in misleading and false financial reports. It would be
inappropriate to include a portion of my salary as part of the
construction cost as it was not associated directly to the cost of
construction. Implementing any of your recent requests would not
only be unethical but also illegal.
References:
Wahlen, J.M., et al. Intermediate Accounting: Reporting and Analysis.
Cengage Learning, 2017.
