Auto Parts Inc (pg. 92)
Required: provided a report to Jeff outlining your recommendation on the accounting issues and
not other important issues
Owners, John Blackman
CFO Jeff Ahmad
Net income maximization
Lecture 4 Class Notes
Purchasing raw materials
Delivery of goods = usually recognize revenue.
Company management: want to make financia
Kentuckyville Slugger (pg 72)
Notes on company
Required: assume the role of Brandon and prepare the report. The financials
statements are prepared with ASPE
Role: Brandon Sousa, CA is the controller of KS
o External auditors
DRYDEN NATURAL SPRINGS notes
Your role provide revised estimate of purchase price for prospective buyer.
Purchase price is based on NBV as per ASPE, with adjustment for FV of
Net assets as given per unaudited balance sheet: $225,790
OLD BAY MANUFACTURING Notes
Public company, therefore IFRS required.
Management wishes to maximize revenue and profit in anticipation of a new share
The companys revenue recognition policies, as stated, are in accordance with IFRS
already, but the
This report has been prepared for AyrGlen Limited regarding any accounting issues that might be present
in the companys financial statement. This report will identify any significant issues, and recommend
policies in accordance with ASPE.
1. Who will be the main users of Loaddown.coms financial statements? What will each use
the financial statements for?
Owner: Heza Nerd, would like to see the financial statements to reflect the economic
activities of his companys performance. He would fur
The companys revenue recognition polices, as stated, are in accordance with IFRS already, but the two
unique situations described in the are controversial.
Onsite visit 10k paid by Cheema visit completed during year, no apparent problem with reven
Dear Mr. Pilek,
This report will provide analysis and recommendations for specific issues only. GI desires net income
maximization, and transparency in financial presentation is essential, in accordance with IFRS.
New machine The total
MUNICH IT Notes
This case revolves around revenue recognition only, and requires the student to recalculate
the revenue figures on the companys draft income statement and determine whether any
bonuses are due to top management, and if so, how much. It mus
Users: Management, Shareholders, and Lenders
Objectives: NI Min or Max, Assets Min or Max, D/E Min or Max, etc.
Conflicts: between users?
Constraints: IFRS? ASPE? Neither?
Issues: each one separately
Alternatives: (if any)
Recommendations: choose an alter
Not-for-Profit Lecture Notes
If you set up funds, they correspond to the restrictions that the donors set.
Types of donations
Restricted Fund Method
Purchase of LTA
Sit-up fitness centre (pg 121)
Required: prepare a report that addresses Mr. powers concerns. The partner would like you to
do a good job this engagement as it may lead to more work, and the annual year-end adult.
Therefore, the partner has asked you to p
Stargazer (pg 81) ACC 504
cash flow statement
Btw cash flow will be in acc 514 exam
Do with conditions
More info needed
Adjust the statements
Car tunes pg 95
Bias: want diluted EPS to be greater than $0.10
MUST be presented (FS) in accordance to IFRS
Stock options plan
Expense half of the option this year ($1,550,000/2)
Because this is the # of years the options were presented at
Not for Profit (ACC 504)
If you accept a donation on a restriction, you must abide by the restriction!
Funds have their own assets, revenue, expenses etc.
If you use fund accounting and you dont have to, the funs correspond with the resections
and DO NOT
Forestry Limited (FL) (pg, 68)
Adopt role of auditor and discuss the financial reporting issues
*RED= the possible issues
Timber-Natural resource assets
o Valuation is an issue
Manufacture logs and wood produ
Old Bay Manufacturing (pg. 74)
Required: prepare the memo
ROLE: junior accountant, employed by OBM and assisting in preparation of
Dec 31 year end PRIOR to auditor visiting.
o Management is stressing that senior personnel is interested in
Body and Soul Fitness Centre (pg. 64)
REQUIRED: prepare the report for Carol, and provide any other
recommendations relevant to the bank loan
ROLE: senior accountant in Leabau and Liang
Newly established business
Owned by Carol Szabados
Offers service (yo
CopyCat Technologies (98)
Required: preparing the report for the seller!
More assets and equity and less debt
Ifrs, the fair value of assets, and net income can do a choice of which way to
use, like price 1, price 2 price 3
AFDA - Under accrual basis of accounting, record an allowance for doubtful accounts, since it provides an estimate of future
bad debts that improves the accuracy of the companys financial statements. Also, by recording the allowance f
Not for Profit (NPO) Organizations:
2 ways to keep books: fund accounting or normal
Each individual fund account corresponds to the restrictions placed on how the money is to be
If you recommend fund accounting, you must also state which funds