This sounds like a lot of work and a waste of time in my opinion. If they can't tell what OP is working on, he/she is either:
a) in a really bad situation and should leave ASAP
b) there is some validity for the pay cut
c) there is money issue with the company
Maybe I've been fortunate with my previous employers as they were generally willing to bend over backwards to make me happy, since I got things done. If his/her employer is clueless as to what OP is doing, then really it's a bad situation for all.
Unless OP is in love with their current job, adding paper work to their day to day task would be a waste of time in my opinion.