As the controller of Milwaukee Waste Recycle, Gilbert is responsible for preparing the company$$s financial statements. It is close to the end of the company$$s fiscal year, December $31,2022,$ and it appears that the company$$s actual results are much worse than what was predicted by Wall Street. This is bad news as the stock price may go down if the company does not meet Wall Street$$s expectations. Only Gilbert and the CEO know the company$$s financial situation.

On December $22,2022,$ the corporation received a contract for waste recycling from We Green Recycle, a large company in Australia. The contract will bring $$7$ million in revenue, but We Green Recycle told Gilbert that it won$$t make the cash payment until the job is completed. The job will start on December $26,2022,$ but won$$t be finished until March $2023.$

The CEO has suggested Gilbert record the revenue and cash receipt of the waste recycling contract even though it won$$t be completed in $2022.$

What is the ethical issue Gilbert faces? What is the ethical course of action for Gilbert to take in this situation? $($Limit answers to $200-300$ words$).$

Hint: This case tests your understanding of when should revenue be recorded $($recognized$),$ the accrual accounting.