As an accountant at Armidale Company (AC), you must adhere to the professional codes of conduct stipulated for your profession (e.g. ones referred to in the textbook, chapter 1). You report to your supervisor, Frank, at work.

Frank, wishing to portray better financial outcomes/results for his department for 2022, puts pressure on you to record a transaction of $191,589 cash received in advance from a customer as revenue for the current accounting period (i.e. in December 2022), while, under the order terms and conditions, the goods were to be shipped/delivered to the customer on January 15, 2023. The customer order is firm and cannot be revoked. Frank insists that since we have received a firm order for the shipment, we can record the order amount as our revenue for December 2022. Frank is keen to achieve the profit target for 2022 set for his department.

Required:

i. For the given situation, what ethical responsibilities you have in connection to your obligations under the CGMA Designation code of professional conduct, when responding to Franks call.

ii. If Frank is persistent and orders you to record the transaction as per his guidelines, what course of action will you follow, step by step, under the CGMA Designation code of professional conduct, when responding to Franks persistence in his order?