The president of SOS Inc. is concerned that the net income at year-end will not reach the expected figure. When the sales manager receives a large order on the last day of the fiscal year, the...

The president of SOS Inc. is concerned that the net income at year-end will not reach the expected figure. When the sales manager receives a large order on the last day of the fiscal year, the president tells the accountant to record the sale but to ignore any inventory adjustment because the physical inventory has already been taken. How will this affect the current year’s net income? next year’s income? What would you do if you were the accountant? Would your answer differ if your company followed IFRS rather than U.S. GAAP? Assume that SOS uses a periodic inventory system.