This is an ethical question.

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Write a 4 page paper on this scenario. Explaining why you would not cook the books.

You are a professional accountant working for a manufacturing company. During the year and close, your accounting manager called you to his office and said John, we need to book the $1.2 million order that we did not have time to ship on December 31 this year. This order will ship January 1 next year anyway, but we need to show higher revenue this year in order to meet the volume for management bonus. We have done this in the past without any problem. Do it and I will make sure you get some of the bonus too. Consider your job security if you do not follow my order.

You know this is an order from your supervisor, however, it is against the key GAAP principle of income recognition.

You are to consider all possible alternatives to tackle this dilemma, and respond to your manager. Remember you are John, so you need to respond using your own decision.

Follow the seven step case analysis as follows:
1. General introduction to the problem
2. Basis of violation
3. Analysis of the situation
4. Possible scenarios or consequences
5. Your position and solution
6. Justification

7. Conclusion

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