Ethical issues in accounting for long-contracts. Halliburton Company provides engineering and construction services under multi-year contracts to energy, industrial, and governmental customers. It has used the pereentage-of-completion method of accounting for its multi-year contracts for many years. In addition to the initial contract price, its contracts call for additional payments if the customer makes changes in the plans — so-called change orders. The firm has not. heretofore, recognized revenue from change orders until it completes the work and collects the cash. It now decides that it can predict with reasonable precision the amount it will collect under change orders and the costs of making the changes. So, it adds the expected collections from the change orders to cash collections expected from customers and the costs of the changes to the costs expected to complete various jobs. Thus, it now recognizes income from change orders as part of its income recognition for all multi-year contracts using the percentageof-completion method. It calls reader's attention to this change in a hard-to-understand note to the financial statements. Discuss any ethical issues that you see confronting Halliburton Company in its decision to change its income recognition method for change orders.