Is any stakeholder harmed if brucki preference is used

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The market value of Lake Corporation's inventory has declined below its cost. Vickie Maher, the controller, wants to use the allowance method to write down inventory because it more clearly discloses the decline in market value, and it does not distort the cost of goods sold. Her supervisor, financial vice-president Doug Brucki, prefers the direct method to write down inventory because it does not call attention to the decline in market value. What, if any, is the ethical issue involved? Is any stakeholder harmed if Brucki's preference is used? What should Vickie do?

Reference no: EM13126120

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