Sweet Cheeks Limited

To: Ana, owner of Sweet Cheeks Limited (SCL) From: score advisor, from CWP Re: explanation issues and impact to drug users This report will outline alternatives and recomm cobblers lastations for the accounting issues presented to us. Your briny objective first appears to be income minimisation for impose 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 alike requires a $75M loan to start operations which makes the bank an grand 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 indeed income maximization the primary objective. As this is a private company, on that point 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 complication s of IFRS and I recommend that ASPE be followed. Issues #1: When to pick out taxation on sale of spend packages. ASPE: To recognize tax revenue, 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 sanely assured d)Revenue weed be reasonably measured e)Cost of earning revenue can be reasonably measured Because of requirements (a) and (b), the earliest measure at which revenue can be enter is on completion of the trip. This is because until the trip is complete, SCL (the seller) distillery has involvement of the service 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 well-grounded alternative. This will amount! to revenue of approximately...If you want to get a full essay, order it on our website: BestEssayCheap.com

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