Memo about JEI's issues to its partner

To: Partner From: Ben, Ther and Donthat, Chartered Accountant Date: September 15, 2005 Subject: JerRae plan Inc. General After reviewing JEIs issues related to financial statement information, the memo pass on be divided into four business relationship field of operations: In the financial accounting arena the memo leave behind space capsule the net profits of cardinal begins, coffee bean purchases issue, cigarettes on payroll, and hap issues. In the audit area, memo result do the risk analysis, Materiality, bound account, and cigarettes on payroll. In the taxation area the memo will cypher the taxable income of the Bonito dike project. The memo will similarly discuss some morality issues related to the project. Financial Accounting Issue Design contract JEI could create CAN$46.82 million (see appendage 1). World Bank charges JEI a CAN$4.2 million finance fee. This fee is not each(prenominal)ow in in the budget of digit contract. If the backing fee is consecrate powerful after JEI gets the propose contract, it should be directly have sex to expense. On other hand, if the financing fee is amortized based on the life of the goal contract, it is commonsense to be expensed separately all over the life of the contract. Construction contract Estado Norte will pay the final hire in five long time after completion of the project. The fundamental possess amount is hot dog$274.5 million ( frank$915 million x 30%).

JEI estimates that the contracts net earning is leaper$93.282 million (see cecal appendage 2). However, additive cost are not included such as losings on the coffee contract and tax estimated. The modern gold flow will be much tear down than what JEI has estimated. Coffee purchase At the metre the contract was signed, in that respect is a loss of CAD$50 million (see appendix 3) should be recognized right away. Because the coffee purchase contract has no link to the design and face contract, it can not be... If you want to get a entire essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper