case study

Pittard Collectibles (PC) makes all sales under terms of FOB delivery point. The firm usually receives orders for sales approximately one week before delivering inventory to customers. For orders received late in June, owner Karen Pittard decides when to deliver goods. If profits are already at an acceptable level, Pittard delays delivery until July, the next financial year. If profits for the current year are lagging behind expectations, Karen delivers goods during June. As PC's accountant you have been asked if under PC's FOB policy, this is acceptable practice of recording sales.

Question: Use the stakeholder analysis framework described in accounting information systems, to analyse if there is an ethical dilemma for Pittard with reference to accounting standards, disclosure and any laws applicable.