An Accounting Manager For Spi

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MGAC01 – Case Assignment # 1 Manan Patel 1000759752 LEC 01 Yiheng Fu 1000366098 LEC 01 Date: December, 31st 2009 To: CFO of SPI From: Manan Patel and Fu Yiheng, Accounting Manager Subject: Revenue Recognition of 2009 Role: I am an accounting manager for SPI and responsible for recognizing the revenue for the four contracts undertaken during 20X9. While reconsidering the revenue recognition, I am also to identify the impact on its SFP and SCI while trying maximize to obtainable amount of loan. Users and Objectives: 1. CFO of SPI – To ensure that the four revenue contracts are accurately reported and reflects the true economic financial position of the company to track performance. Moreover, the recognition should identify the impact on SFP and SCI to track the amount of financing available. The CFO is also concerned with the EBITDA (earnings before interest, taxes, depreciation and amortization) to finance growth. 2. Bank wants the information to assess the company’s ability to pay back the financial loan. They want the file interim statements to report fair and accurate financial statement accordance with the appropriate standards to allow them to set the accurate amount of loan. 3. Other users can include suppliers, customers and future investors that want stewardship reporting to calculate performance measurement and evaluation of the company’s current position. Constraints: 1. Being a public company for the last three years, SPI must adopt IFRS
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