Paul Satorius Is the Controller at ANEW Corporation

question 11

Essay

Paul Satorius is the controller at ANEW Corporation.The company is not publicly traded.ANEW Corporation just received a patent on a new product that is supposed to revolutionize the music industry.As the moment,however,ANEW Corporation is experiencing financial difficulties and is on the verge of defaulting on a note held by the bank.
At the end of the most recent fiscal year,the company's president instructed Paul to ignore recording some invoices.Paul objected because the invoices represented true liabilities at fiscal year end.However,the president insisted that the invoices should be recorded next year so that current liabilities reported on the balance sheet at the end of the current year are lower.The bank is closely following the amount of current liabilities reported by ANEW Corporation as an indicator of solvency.What should Paul do? Follow the guidelines offered by the IMA.

---

Definitions:

Lead Plaintiff

A representative party in a class-action lawsuit who has a significant interest in the outcome and leads the litigation process.

Sexual Dichotomism

The belief or ideology that there are only two distinct and opposite genders, male and female, which are determined by biological sex.

Androcentricity

The practice or mentality of centering men's perspectives and interests, often leading to the marginalization of women and non-binary individuals in various sectors.

Familism

A cultural value emphasizing the importance of family connections, loyalty, and mutual support among family members, often prioritized over individual needs.