Assume you are the managerial accountant for a publicly held corporation.Your supervisor is the controller,and he directs you to ignore a significant amount of obsolete inventory for a report you are preparing for the CFO.Your supervisor indicates that the inventory issue will just "mess up our projections because adjusting the inventory value downward will result in lower profits for the quarter.If it's obsolete now,it will be obsolete next quarter,and we have much more flexibility built into the budget next quarter."
Using the IMA's Statement of Ethical Professional Practice,what guidelines are violated and how should you handle this situation?

Question

Quizplus · Accepted Answer

The Answer of Assume you are the managerial accountant for a publicly held corporation.Your supervisor is the controller,and he directs you to ignore a significant amount of obsolete inventory for a report you are preparing for the CFO.Your supervisor indicates that the inventory issue will just "mess up our projections because adjusting the inventory value downward will result in lower profits for the quarter.If it's obsolete now,it will be obsolete next quarter,and we have much more flexibility built into the budget next quarter."
Using the IMA's Statement of Ethical Professional Practice,what guidelines are violated and how should you handle this situation?

Assume You Are the Managerial Accountant for a Publicly Held