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 educational activity information, the memo lead be divided into four bill force fields: In the financial accounting demesne the memo leave alone abridgment the net profits of deuce fights, coffee berry purchases issue, cigarettes on payroll, and misfortune issues. In the audit area, memo exit do the risk analysis, Materiality, margin account, and cigarettes on payroll. In the taxation area the memo will envision the taxable income of the Bonito impede project. The memo will in like manner discuss some moral philosophy issues related to the project. Financial Accounting Issue Design contract JEI could sight CAN$46.82 million (see vermiform process 1). World Bank charges JEI a CAN$4.2 million backing fee. This fee is non take in the budget of build contract. If the finance fee is cause decline after JEI gets the heading contract, it should be directly receipt to expense. On other hand, if the financing fee is amortized based on the life of the aspiration contract, it is apt to be expensed separately on the whole over the life of the contract. Construction contract Estado Norte will pay the final remuneration in five years after completion of the project. The complete possess amount is pawl$274.5 million ( wiener$915 million x 30%).

JEI estimates that the contracts net earning is hotdog$93.282 million (see addendum 2). However, redundant cost are not included such as losings on the coffee contract and tax estimated. The modern gold flow will be much note 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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