Memo about JEI's issues to its partner

To: Partner From: Ben, Ther and Donthat, Chartered Accountant Date: September 15, 2005 overpower: JerRae Engineering Inc. General After reviewing JEIs issues related to financial didactics information, the memo allow be divided into four explanation orbits: In the financial accounting area the memo entrust abridgment the net profits of two take aways, cof requital purchases issue, cigarettes on payroll, and mishap issues. In the audit area, memo will 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 moral philosophy issues related to the project. Financial Accounting Issue Design contract JEI could stool CAN$46.82 million (see appendix 1). World strand charges JEI a CAN$4.2 million financing fee. This fee is not include in the budget of designing contract. If the financing fee is give rectify after JEI gets the design contract, it should be at present acknowledge to expense. On other hand, if the financing fee is amortized found on the life of the design contract, it is reasonable to be expensed separately all over the life of the contract. Construction contract Estado Norte will pay the final payment in five age after completion of the project. The total possess amount is hot dog$274.5 million ( hotdog$915 million x 30%).

JEI estimates that the contracts net earning is cad$93.282 million (see appendix 2). However, additional cost are not included such as losings on the java contract and tax estimated. The new gold flow will be much lo wer than what JEI has estimated. Coffee pur! chase 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: BestEssayCheap.com

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