Manager Infrastructure + Finance

Essay specific features

 

Issue:

Business

 

Written by:

Pamela C

 

Date added:

July 31, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1013

 

Was viewed:

10152 times

 

Rating of current essay:

 
Essay content:

Kitscha has assumed that all financial reporting should follow Canadian GAAP. It is Kitscha’s understanding that YSSB’s financial statements will serve at least two purposes: 1) Being used by YSSB’s owners to determine the bonus amounts, if any, to distribute to employees; and 2) Potentially being provided to the Morgan Bank (the “Bank), in satisfaction of a condition pursuant to a line of credit (“LOC”) provided by the Bank in favor of YSSB...
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Without having reviewed the terms of the LOC, Kitscha has been advised that the LOC has two the additional requirements, being: i) YSSB’s debt-to-equity ratio may not exceed 1.00; and ii) the Bank must approve all dividend distributions and profit sharing amongst the owners. This letter provides Kitscha’s professional opinion regarding the following items: 1) the general form of the financial statements; 2) the obligations to the Bank; 3) revenue recognition; 4) collection of life insurance premiums; and 5) a newly developed legal claim against YSSB...
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