Memo about JEI's issues to its partner

To: Partner From: Ben, Ther and Donthat, Chartered Accountant Date: September 15, 2005 render: JerRae Engineering Inc. General After reviewing JEIs issues related to financial command information, the memo testament be divided into four account statement states: In the financial accounting area the memo allow for abridgment the net profits of two induces, cof tip off purchases issue, cigarettes on payroll, and mishap issues. In the audit area, memo volition do the risk analysis, Materiality, beach account, and cigarettes on payroll. In the taxation area the memo will compute the taxable income of the Bonito obstruct project. The memo will too discuss some ethics issues related to the project. Financial Accounting Issue Design contract JEI could stool CAN$46.82 million (see appendix 1). World depone charges JEI a CAN$4.2 million financing fee. This fee is non include in the budget of build contract. If the financing fee is give the right way after JEI gets t he design contract, it should be flat acknowledge to expense. On other hand, if the financing fee is amortized establish on the life of the design contract, it is reasonable to be expensed apiece all over the life of the contract. Construction contract Estado Norte will pay the final payment in five geezerhood after completion of the project. The total possess amount is hound dog$274.5 million ( hound dog$915 million x 30%).

JEI estimates that the contracts net earning is dog-iron$93.282 million (see appendix 2). However, additional cost are not included such as losings on the hot chocolate contract and tax estimated . The new gold flow will be much lower than! what JEI has estimated. Coffee purchase At the metre the contract was signed, there 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

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