Case Study : Apple Inc. Apple Inc.
Order now However, to avoid any unnecessary reporting complications, the entire purchase discrepancy related to this machine was allocated to goodwill.
GPI intends to keep the Abruzzi name and brand intact. Operations in Italy will be maintained, but GPI will import some of the olive oil production to Canada.
In preparation for ongoing operations, GPI has temporarily transferred two managers and five employees to Italy to work at the Abruzzi home office for a period of two years to ensure the transition runs smoothly and that the scale of operations can be increased to meet the forecasted sales growth.
GPI is recording wages paid as consulting fees and is no longer taking source deductions. One manager has recognized that the move would cause undue stress on Gourmet products inc essay family if they remained in Canada so he has decided to take his wife and children with him for the two-year period.
The equipment is expected to be useful for a period of 12 years. The interest is payable monthly in euros by GPI. The ownership of the labelling machine was transferred to Abruzzi on September 1, 20X0, in exchange for a EURnote.
On the basis of an extensive review of the relationship between GPI and Abruzzi, Abruzzi has been classified as a foreign operation in accordance with IAS In accordance with IFRS, Abruzzi revalued its land and building asset grouping to fair market value, resulting in an increase to the land and building account of EUR 20, A revaluation loss of EUR 5, had been recognized for land and buildings in the previous year.
As a result, GPI has had a very low profit margin on its retail sales of Abruzzi olive oils. Your firm has been engaged to prepare the consolidated financial statements for the fiscal year ending September 30, 20X0, for GPI.
This is the third year the firm has been engaged by GPI. Moore mentioned that he had some concerns about the upcoming project of converting the existing payroll system to a new technology platform.
A new payroll software system has been purchased since the payroll system currently in use is designed for a small company. Delays in payment of payroll have caused frustration for employees, although this does occur on an infrequent basis.
The IT director is strongly suggesting that a direct cutover conversion approach be taken so that the new system can be used as soon as possible to realize the benefits. It is also the least expensive approach.
Moore is concerned that this is a risky approach and he believes that a parallel conversion would be a better option. He is particularly concerned since he has heard that other companies have found errors during the implementation of this specific software system, although these errors are easily resolved once identified.
Furthermore, since this is the first time GPI has been required to prepare consolidated financial statements for its shareholders, Moore is concerned about how the users will be able to differentiate between the financial positions and results of operations for the two separate entities.
Required a In your discussion group, analyze the case as a whole and identify all the issues to be included in the report to the CEO. Note: Candidates must participate in the online discussion.
Failure to post in the online discussion and respond to the posts of others will result in failing the discussion-based communication competencies. You should also address any other issues raised in the case.
Complete this report independently of your group and submit it as a hand-in assignment. How to cite this page Choose cite format:.Inc..
a calendar twelvemonth S corporation. has 5 equal stockholders at the terminal of the revenue enhancement twelvemonth. Miyasyke had $ of nonexempt income.
Miyasyke made distributions to its stockholders of $ each. for a sum of $ Keep up with Gourmet Products Inc. See more information about Gourmet Products Inc, find and apply to jobs that match your skills, and connect with people to advance your career.
Essay on Gourmet Products Inc Case Study. Gourmet Products Inc. Prepared by Asif Majarani, Sr. Audit manager of Majarani Associates, CGAs Submitted October 31, 20X0 Summary Our firm has been engaged with GPI for compilation engagements for the past two years.
Gourmet does not have any major market intermediaries as it produces and sale it products it self. It does contact market intermediaries for supply of raw materials, and products like Coca cola, Jams, Ketchup, and Juices etc.
If you look at Gourmet Foods, it . Free Essay: Preparation of consolidated financial statements – adjustments and other issues Report to Ed Moore, CEO of Gourmet Products Inc. Prepared by Asif. Gourmet Products Inc. (GPI) is a Canadian publicly traded retailer of aged balsamic vinegars, culinary sauces, spices, herbs, and seasonings.
Products are sold globally through several Internet sites created and operated by GPI.