Answer the following questions. (a) What stakeholders should be considered? (b) What ethical issue, if any, underlies the dispute? (c) What alternatives should be considered?
Please read about Anderson Nuclear Power Plant in CA2-10. Please answer questions a) through e). After your initial post please comment or respond to at least two of your classmates.
This can be found in "end of chapter materials" (left hand column) in the Wiley Reading.
You will not be able to see any posts until you post your response.
CA2-10. (Expense Recognition Principle)
Anderson Nuclear Power Plant will be “mothballed” at the end of its useful life (approximately 20 years) at great expense. The expense recognition principle requires that expenses be recognized as assets are used up or liabilities are incurred. Accountants Ana Alicia and Ed Bradley 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.
What stakeholders should be considered?
What ethical issue, if any, underlies the dispute?
What alternatives should be considered?
Assess the consequences of the alternatives.
What decision would you recommend?
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