Current Attempt in Progress

Prophet Company signed a long$-$term purchase contract to buy timber from the U$.$S$.$ Forest Service at $\backslash (\backslash$$ $300\backslash )$ per thousand board feet. Under these terms, Prophet must cut and pay $\backslash (\backslash$$ $6,000,000\backslash )$ for this timber during the next year. Currently, the market value is $\backslash (\backslash$$ $250\backslash )$ per thousand board feet. At this rate, the market price is $\backslash (\backslash$$ $5,000,000\backslash ).$ Jerry Herman, the controller, wants to recognize the loss in value on the year$-$end financial statements, but the financial vice president, Billie Hands, argues that the loss is temporary and should be ignored. Herman notes that market value has remained near $\backslash (\backslash$$ $250\backslash )$ for many months, and he sees no sign of significant change.

What are the ethical issues, if any?

B

I U $\backslash (\backslash$mathrm$\{$T$\}\_\{2\}\backslash )\backslash (\backslash$mathrm$\{$T$\}^\{2\}\backslash )\backslash ($ I$\_\{$x$\}\backslash )$

Is any particular stakeholder harmed by the financial vice president's decision?