Sundream Holidays Ltd. is a public company and reports using IFRS. The company sells vacation packages and has a new chief executive officer (CEO) who is reviewing the draft December 31 year-end financial statements prepared by the company's controller. On these statements, the current assets total $400,000 while the current liabilities total $210,000, which results in a current ratio of 1.9:1. Several months ago, the company obtained some new bank financing that requires it to maintain a current ratio of at least 2:1. After reviewing the statements, the CEO suggests that the controller change the financial statements for two transactions. The first transaction involves a vacation package (flights and accommodation) that was sold to a ski club. The vacation starts in two months' time, in early March, and the club has paid $12,000 in advance for the trip. Because the cash has been received, the CEO suggests that the credit relating to this transaction be shown in revenue. The second transaction relates to an accrual of $3,000 for December interest expense that is not due until early January. The CEO suggests that this accrual should not be made because the interest is not due until next year. 1. Who are the stakeholders in this situation? 2. How will agreeing to the CEO's request have an impact on the financial statements? 3. Is the CEO acting in an ethical manner? Why or why not? 4. In what way does the existence of accounting standards enhance ethical behaviour