As an accountant, there are definitely issues and concerns with the
CEO's requests. Providing false information on the financial
statements is illegal and as an accountant I would be responsible for
the incorrect information. I would respond to the CEO that I will not
report incorrect financial information, but that I would add notes on
the financial statement that would explain the business has started
planning for construction in 2015. I would also note and explain the
reasons for the loss and not a profit for 2016. Also as an accountant
my salary would not be part of the cost of the building.There are
some concerns from an ethical perspective regarding the CEO's
request. Reporting inaccurate information on the financial
statements is not ethical. If I went along with the CEO's requests, I
would report false information to creditors, investors, and to the
public, which I believe is unethical and not in accordance with GAAP.
Whalen, J. M., Jones, J. P., & Pagach, D. P. (2017). Intermediate
accounting: Reporting and analysis. Boston, MA: Cengage Learning.
