Marcus Victoria is the chief accountant at Company X, a producer of medical supplies. The company is under a lot of pressure from creditors to increase its earnings. Shortly after the end of the fiscal year, the company performed a physical count of all the inventory. A great amount of inventory shrinkage was discovered. This amount is very large, that it will result in a significant drop in earnings this period. The decrease in earnings will unfortunately hurt the company's chance at getting a much needed loan at a low interest rate. Marcus Victoria is thinking of not reporting the shrinkage until the next period, after the company gets a loan.

What should Marcus Victoria do in this situation and why? Is this ethical?