ATHINA BUILDING SUPPLIES LTD.
October 4th, 2013
To: CFO of Athina Building Supplies Ltd.
From: CA
Re: Issues and Recommendation Regarding Athina Building Supplies Ltd.
ROLE
I am an advisor to the CFO hired to evaluate the events that occurred during the year ended December 31st, 2017, and to prepare a report on an examination of the financial statements, any issues with Athina’s new management, and any problems that could potentially affect net income and the amount the national chain is due.
CONSTRAINTS
Following the International Financial Reporting Standards (IFRS) would be beneficial to both the new investors and the old owners seeing as how IFRS leaves less up to judgement and would provide more consistency. Under the assumption that the new investors are looking to grow and expand the company, using IFRS would be useful if the company were to ever need more investors or a loan from the bank. Growth would mean that additional investors and a possible bank loan could be necessary. Assuming that the company was already using IFRS, it would be in their best interests to continue using those standards because switching to the Accounting Standards for Private Enterprises (ASPE) would be costly seeing as how they are not a part of the national chain of stores anymore, and following no standards at all is out of the question due to the fact that Athina’s financial statements will be looked at by external parties and it is important that they are consistent, accurate and can provide useful information.
USERS AND OBJECTIVES In this case, as an advisor to the CFO, I am under the assumption that I have no power in making any decisions that will affect the financial statements or the net income. This means that no stakeholders are directly or indirectly influenced by my actions because all I am doing is providing insight to the CFO in regards to the issues presented to me. Therefore, there are no users in this