Answer
It would be unethical to ignore recognition of the loss within the current period because it is expected to occur when the purchase is affected.
Work Step by Step
The generally accepted accounting principles (GAAP) require that when a contracted price exceeds the market price, i.e., market is 5,000,000 and the contract price is 6,000,000, and it is expected that losses will occur when the purchase is effected (the 1, 000, 000 difference), losses should be recognized in the period during which such declines in market prices take place.
