Anstead Co. Is expecting a decrease in sales and operating income for the fiscal

Question

Anstead Co. Is expecting a decrease in sales and operating income for the fiscal year ending October 31. Ryan Frazier, controller of Anstead Co., Has suggested that all orders received before the end of the fiscal year be shipped by midnight, October 31, even if the shipping department must work overtime.
- what ethical issue, if any, is at stake in this case?
-who are the stakeholders?
-what should be done to resolve this issue? Anstead Co. Is expecting a decrease in sales and operating income for the fiscal year ending October 31. Ryan Frazier, controller of Anstead Co., Has suggested that all orders received before the end of the fiscal year be shipped by midnight, October 31, even if the shipping department must work overtime.
- what ethical issue, if any, is at stake in this case?
-who are the stakeholders?
-what should be done to resolve this issue? Anstead Co. Is expecting a decrease in sales and operating income for the fiscal year ending October 31. Ryan Frazier, controller of Anstead Co., Has suggested that all orders received before the end of the fiscal year be shipped by midnight, October 31, even if the shipping department must work overtime.
- what ethical issue, if any, is at stake in this case?
-who are the stakeholders?
-what should be done to resolve this issue?

Explanation / Answer

1. In this case, the controller has suggested to deliver the orders earliest. There is not ethical issue involved here. But, by making the sales by midnight of October 31, they are going to include these sales in the current year and the amount of sales would not be reflected in next year's income statement.

2. Stakeholders are the customers, suppliers, creditors, government, tax authorities, etc.

3. Instead of rushing towards the end date and using the overtime working hours, it is preferrable to deliver the orders beforetime.

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