The financial controller of Wally's Wineries Pty Ltd has also requested that you provide the following non-assurance services. In the report you are also required to discuss the firm's eligibility to provide the non-assurance services, identifying any potential independence issues with reference to APES110: Code of Ethics for Professional Accountants.
1. Wally's Wineries Pty Ltd has requested that your firm represent them in negotiations with the management of another vineyard company that they are considering acquiring.
2. Wally's Wineries Pty Ltd wishes to prepare its financial statements in accordance with the accounting standards. Due to the lack of technical expertise of the accounting staff, they have requested advice regarding the presentation of the notes to the accounts.
Wally's Wineries Pty Ltd is a large proprietary company. The company operates a number of vineyards in the Hunter Valley in New South Wales and produces a broad range of white and red wines for local sale and the international market.
The company operates in a competitive industry. The company has consistently increased profits providing shareholders with a consistent dividend stream.
In implementing its expansion strategy the company purchased a neighbouring vineyard with finance from Ag Bank.