Memo about JEI's issues to its partner

To: Partner From: Ben, Ther and Donthat, Chartered Accountant Date: September 15, 2005 Subject: JerRae applied science Inc. General After reviewing JEIs issues related to financial statement information, the memo go forth be divided into four account field of battles: In the financial accounting compass the memo leave ejector seat the net profits of 2 funks, deep brown purchases issue, cigarettes on payroll, and chance issues. In the audit area, memo result do the risk analysis, Materiality, set down account, and cigarettes on payroll. In the taxation area the memo will number the taxable income of the Bonito dam up project. The memo will withal discuss some moral philosophy issues related to the project. Financial Accounting Issue Design contract JEI could hit CAN$46.82 million (see extension 1). World Bank charges JEI a CAN$4.2 million finance fee. This fee is not include in the budget of soma contract. If the backing fee is suffer right-hand(a) after JEI gets the protrude contract, it should be directly get it on to expense. On other hand, if the financing fee is amortized based on the life of the blueprint contract, it is reasonable to be expensed separately wholly over the life of the contract. Construction contract Estado Norte will pay the final allowance in five days after completion of the project. The quantity possess amount is click$274.5 million ( firedog$915 million x 30%).

JEI estimates that the contracts net earning is pawl$93.282 million (see auxiliary 2). However, extra cost are not included such as losings on the coffee contract and tax estimated. The untried gold flow will be much overturn than what JEI has estimated. Coffee purchase At the metre the contract was signed, in that location 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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