(Matching) Hinckley Nuclear Power Plant will be mothballed at the end of its useful life (approximately 20...

Question:

(Matching) Hinckley Nuclear Power Plant will be “mothballed” at the end of its useful life (approximately 20 years) at great expense. The matching principle requires that expenses be matched to revenue. Accountants Jana Kingston and Pete Henning argue whether it is better to allocate the expense of mothballing over the next 20 years or ignore it until mothballing occurs.

Answer the following questions.

(a) What stakeholders should be considered?

(b) What ethical issue, if any, underlies the dispute?

(d) Assess the consequences of the alternatives.

(e) What decision would you recommend?

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...