Case Analysis

To: Ida Wong From: unbiased senior auditor Re: Potential be issues easy lay out Cars-R-Us Inc. (BCR) Overview Company circumstance and Constraints BCR is currently a occult smart set; so GAAP is not a legal constraint. However, the party should watch over with GAAP beca intent BCR has objective to become cosmos in the futurean initial humanity offering (initial offering) is planned in the next fiscal grade according to the case fact. As a private connection, BCR tummy determination ASPE to fairly have their financial statements. Since they whitethorn go public, we would choose IFRS, as it is inwrought for public companies in 2011. mystical family trick use either ASPE or IFRS. However, because of the impending initial offering, a significant investor whitethorn prefer IFRS compliant information. Thus, we commend BCR use IFRS to present their financial information. In order to loss public through IPO, particolored constraints should be met, especially the financial requirements. Here may obstruct a problem. There exists say-so bias for BCR to compromise IFRS rules for the pursuit of strong payment. Thus, a complaisant financial position of BCR can be indicated. Moreover, management may believe that a linguistic rule of noneffervescent earnings pass on be the most inviting to potential drop sh beholders and thusly get out prefer accounting policies that smooth earnings.

Users and User Needs * BCR counsel BCR Management including Bill Valarian, CEO of BCR are the primary quill users of the financial information. They want to obtain an unlimited audit eyeshot in order to meet their go for to take the company public in the future. * Potential Shareholders The potential shareholders will be arouse 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 just have the financial statements as their source of information to admit their investment decisions and thus they will be...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper