Sweet Cheeks Limited

To: Ana, owner of Sweet Cheeks Limited (SCL) From: score advisor, from CWP Re: account issues and impact to drug users This report will outline alternatives and recomm shuttingations for the accounting system issues presented to us. Your briny objective first appears to be income minimisation for value minimization purposes. The managers goals will align with this as they get a reward of 30% of their salary based on minimizing taxes. However, SCL excessively requires a $75M loan to start operations which makes the bank an grave user and income maximization a key objective. This conflicts with yours and managements objectives. But, as it is required for the start of the business, the bank will be the more or less important user and then income maximization the primary objective. As this is a private company, in that location is a choice surrounded by ASPE or IFRS. However, as the company is small and you are the doctor owner, there is no need for the complicat ions of IFRS and I recommend that ASPE be followed. Issues #1: When to fill out taxation on sale of spend packages.

ASPE: To recognize taxation, 5 criteria must be met: a)Signifi buttt risks and rewards of willpower must be transferred b)Seller has no involvement or control of goods sold c)Collection of payment is more or less assured d)Revenue weed be reasonably measured e)Cost of earning revenue can be reasonably measured Because of requirements (a) and (b), the earliest sentence at which revenue can be preserve is on completion of the trip. This is because until the trip is complete, SCL (the sell er) distillery has involvement of the servi! ce sold. In addition, this will determine the totality of revenue that should be recorded as it will be fully paid at the end of the trip. Recommendation: bed revenue at the end of each trip. This does not accumulate income maximization objective as it defers recognition until the last viable point, but this is the only legitimate alternative. This will amount to revenue of approximately...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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