To: CFO of Athina Building Supplies Ltd.
From: IV Consulting Group’s consultants-
Purpose: Recommendations for the CFO of Athina Building Supplies Ltd.
We are writing to you on behalf of IV Consulting Group after closely examining the financial statements of your national retail and commercial building supplier chain, Athina Building Supplies Ltd.’s. We have stumbled upon several issues, which will be discussed in detail below.
We have prepared an insightful report on our findings and recommendations as asked for by the CFO of the national chain. Though the CFO is whom we are reporting too, we have considered how our advice will affect other key stakeholders of Athina such as the investors and CRA (assuming it is a Canadian firm),
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Generally, depreciation expenses with assets are recorded right away, yet Athina’s management failed to do so as an error and therefore this can be seen a usual/non-recurring item. The solution is to deduct the $175,000 as an unusual/non-recurring expense after a net income has been calculated for the business’s normal transactions (Refer to Appendix 1). Objectives of the investors will not be met with this solution as it maximizes income and pay out amount, but their method is still correct as well.
ISSUE 3
In mid-2013 (assuming April), Athina obtained a five year dealership for kitchen cabinets, the contract was not renewed in 2017 but $210,000 were spent by Athina within 2013-2107 to set up displays to promote the line. $210,000 was capitalized and amortized over 10 years, and since it was discovered the products will not sell beyond April 2018, the unamortized portion was written off. The displays’ expense at December 31, 2017 becomes $105,000, meaning a remainder of another $105,000 is left to be expensed. (Refer to Appendix 2) In order to support the primary objective, and also provide a benefit for Athina’s management, the remaining $105,000 should have not been written off in 2017 but instead in 2018. This is beneficial in two ways, not expensing the amount in 2017 meets the CFO’s income maximization objective and for Athina’s management, because they are now aware
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
S.P. is admitted to the orthopedic ward. She has fallen at home and she has sustained an intracapsular fracture of the hip at the femoral neck. The following history is obtained from her: She is a 75-year-old widow with three children living nearby. Her father died of cancer at age 62; mother died of heart failure at age 79. Her height is 5’3 and weighs 118 pounds. She has a 50 pack year smoking history and denies alcohol use. She has severe Rheumatoid Arthritis (RA) and had an upper GI bleed in 1993 and had Coronary Artery Disease with CABG 9 months ago. Since that time, she has engaged in “very mild exercise at home.” Vital signs are 128/60, 98, 14, 99 degree farenheight (32.7 degrees C) SAO2 94%
The United States Court of appeals ruled that the suppressed evidence is purely impeaching evidence and no defense request has been made, the suppressed evidence is material only if its introduction probably would have resulted in acquittal. Given a minor role of Phillips' testimony and the limited impact that Phelps statement had on the jury's assessment of Phillips credibility, Maddox could not demonstrate that so the evidence probably would have resulted in an acquittal. Also, the evidence was immaterial under United States V.Blasco; the defendant filed a joint motion to suppress all physical evidence gathered by the officers and any statements made by the defendant. The magistrate found that the defendant did not have to raise a fourth amendment challenge and its suppression did not violate his (Maddox’s) due process right. For ongoing reasons, the district court's dismissal of Maddox's habeas petition was affirmed.
1. Write a client outcome to help Mrs. Ross resolve the symptoms (i.e., defining characteristics). Refer to Section III (beginning on p. 119) of the Ackley and Ladwig text.
IgG – funtions in neutralizing, opsonation, compliment activation, antibody dependent cell-mediated cytocity, neonatal immunity, and feedback inhibition of B-cells and found in the blood.
Read the article Diagnosis Coding and Medical Necessity: Rules and Reimbursement by Janis Cogley located on the AHIMA Body of Knowledge (BOK) at http://www.ahima.org.
Starting a business can be an exciting time for an entrepreneur but new market concepts and opportunities are useless without the strategies to operate the company to success. Day to day strategies are needed to achieve the organizations goals. The largest expense of any company is usually the compensation strategy. The face of the retail company is the service staff and their relation to the customer are paramount to success. Firms are in competition to find qualified, engaged employees. The pressure for an organization to get it right is the key to competitive success. Companies now look to creative compensation strategies to create a environment that employees want to
Poor work life balance for gen. y – When gen. y can’t work due to their social life outside of work. The gen. y wanted more flexible working hours instead of wanting to only have to work full-time. Francoli gave them the solution to pick between two option which where 1) was to work longer hours four days a week and have the Friday off or 2) employees get to choose when they want to work put to only 8 hours a day.
Scenario: John is a 4 year-old boy who was admitted for chemotherapy following diagnosis of acute lymphoblastic leukemia (ALL). He had a white blood cell count of 250,000. Clinical presentation included loss of appetite, easily bruised, gum bleeding, and fatigue. Physical examination revealed marked splenomegaly, pale skin color, temperature of 102°F, and upper abdomen tenderness along with nonspecific arthralgia.
The second way that Athina could have approached this issue is that Athina could have considered the write-off as an unusual or non-recurring item seeing as how the inventory-turned-obsolete was not something that happens regularly. In this case, by considering this event as unusual or non-recurring, there would have been no effect on the net income before unusual or non-recurring items.
Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
1. Is Coconut’s February 1, 2012, arrangement with Buffett within the scope of ASC 985-605?
Acute respiratory distress syndrome (ARDS) occurs when fluid builds up in the tiny, elastic air sacs (alveoli) in your lungs. More fluid in your lungs means less oxygen can reach your bloodstream. This deprives your organs of the oxygen they need to function.
For example the extra charge for maintenance accumulated from last year and for this year should be equally divided and not charged to the first quarter only. Similarly, cost of relocating the Southern Paper Sioux Springs office that has been charged to the first quarter, had been the expenditure incurred last year. It should not have been included in the first quarter. No doubt these are good accounting practices but nevertheless reverting the charges to their respective results would not compromise GAAP practice. Unrealized income would be better off transferred to the next or the last quarter as the income received would not materialize until at the end of the year. Including the dividend from the company's Brazilian unit would not help increase profitability at the end of the year unless the company is assured of its profitability. As of now it needs to balance its accounts before it can estimate correct profit level at the end of the year. With regard to the obsolete inventories, there is no alternative course of action but to write-off from this
The market for Sexual Dysfunction treatment especially among males is considered to be a market with great growth potential. Pharma Technologies Inc. in Canada has achieved a patent for the new break through technology that offers treatment for the condition in a totally different way than the current prevalent drugs in the market like Viagra. The case discussion below attempts at analyzing the best alliance strategy between PTI and a company to ensure timely development of a new drug with the technology that PTI has patented. The analysis includes a discussion on the strategic issues and objectives, industry analysis, Firm analysis, the deal options and recommendation for a strategy.