{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

CaseTutorial_2-_UTSC_Limited-_Solution

CaseTutorial_2-_UTSC_Limited-_Solution - UTSC 2011 Fall...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
UTSC – 2011 Fall Case Workshop 2 – Notes – November, 2011 1. Role: UTSC Limited (UTSC) currently imitates a contest among its franchised stores and Calgary Store is the winner. They have engaged you to prepare a report to determine the appropriateness of the accounting methods Calgary Store uses and ensure that the accounting methods used were “fair” in the context of the contest. 2. Users and Objectives: a. Management of UTSC – Ensure accurate financial reporting by the Calgary Store and the contest results and assessments are fair. Their objective is also to promote the growth of businesses among all the franchised stores and hence maximizing the profit for UTSC. b. Owner of Calgary Store – want to ensure fair and accurate financial information and reporting to assess the company’s financial position and operating results. Their objective is to remain as the winner of this contest and receive the prize of $100,000. They also want to make sure that everything reported is ethical. c. Owner of Vancouver Store – their objective is to win the contest. Since they are the close second, they would likely want to see that there are errors in Calgary’s reporting of financial results. d. Other users can include the rest of the franchised stores and CRA, etc. – Their objectives will include the necessity to provide fair and accurate financial reporting. The other franchised stores also want to make sure that the contest result truly reflects the winning results. e. Identify possible conflict in objectives between the Calgary and Vancouver stores. 3. Constraints: a. Being a privately owned company, UTSC has the option to adopt IFRS or ASPE. However, UTSC has mandated that all financial reporting should follow IFRS to ensure consistent reporting across all franchised stores. b. The contest rule and formula – The formula for the contest is (Income before tax in 2011 – Income before tax in 2010)/Income before tax in 2010. c. Ethical standards – All the franchised stores involved in the contest must ensure that they are ethical in reporting their financial results and truly reflects their performance.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern