Case Analysis

To: Ida Wong From: unbiased senior auditor Re: Potential chronicle issues scoop out Cars-R-Us Inc. (BCR) Overview Company Background and Constraints BCR is currently a insular smart set; therefore GAAP is non a legal constraint. However, the party should comply with GAAP beca jailed BCR has intention to become public in the futurean initial public offering (initial offering) is planned in the next financial year according to the case fact. As a private connection, BCR spate use ASPE to fairly rescue their financial statements. Since they may go public, we would choose IFRS, as it is essential for public companies in 2011. Private companion can use either ASPE or IFRS. However, because of the impending IPO, a significant investor may prefer IFRS gentle information. Thus, we recommend BCR use IFRS to present their financial information. In smart set to going public through IPO, motley constraints should be met, in particular the financial requirements. Here m ay cram a problem. in that respect exists likely bias for BCR to compromise IFRS rules for the interestingness of strong earnings. Thus, a favorable financial position of BCR can be indicated. Moreover, instruction may believe that a linguistic rule of placid earnings pass on be the most inviting to potential sh arholders and thus will prefer accounting policies that smooth earnings.

drug users and User Needs * BCR Management BCR Management including Bill Valarian, CEO of BCR are the primary quill users of the financial information. They want to obtain an clumsy audit eyeshot in order to meet t heir longing to take the company public in ! the future. * Potential Shareholders The potential shareholders will be interested in the success of the company (i.e. strong take in income and balance sheet) because this will be used to evaluate whether or not they should invest in the companys IPO in the future. Furthermore, the potential shareholders exactly have the financial statements as their source of information to take a shit their investment decisions and thus they will be...If you want to get a full essay, order it on our website: BestEssayCheap.com

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