ethical decisions

Project Description:

andrea pafko, corporate comptroller for nicholson industries, is trying to decide how to present "property, plant and equipment" in a balance sheet. she realizes that the statement of cash flow will show that the company made a significant investment in purchasing equipment this year, but overall she knows the company's pant assets are rather old. she feels that she can disclose one figure titled "property, plant, and equipment, net depreciation," and the result will be a low figure. however, it will not disclose the age of the asset. if she chooses to show the cost less accumulated depreciation, the age of the asset will be apparent. she proposes the following.

property, plant and equipment,
net depreciation $10,000,000

rather than:
property, plant and equipment $50,000,000
less: accumulated depreciation ($40,000,000)

net book value $10,000,000

a) what are the ethical issues involved?
b) what should pafko do?
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Price Type: Negotiable

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