case 3

Paper details:

Objectives:

to develop an ability to identify and assume an assigned role;
to be able to identify and rank the importance of explicit issues;
illustrate the importance of hidden (undirected) issues that arise from a detailed analysis;
to identify accounting issues (GAAP/IFRS compliance issues), assess their implications, generate alternatives, and provide recommendations within the bounds of GAAP/IFRS to meet the client’s needs;
to examine how accounting standards impact financial measures (ratios, covenants, etc); and
to prepare a coherent report and integrated analysis that meets specific user needs.
Instructions:

In order to complete your case analysis successfully:

identify the role you are playing;
assess the financial reporting landscape, considering the user needs, constraints, and business environment;
identify the issues;
analyze the issues (qualitatively and quantitatively); and
provide a recommendation and conclusion.
An average grade will result from answering all questions with basic coverage and accuracy, showing all your work. Additional points come from including greater detail, astute, informed commentary where appropriate and connections to readings and other content.

Background

You are a Consultant for the professional service firm, BUSI 2083 LLP. Your firm specializes in providing a wide variety of internal business solutions for different clients. One of the partners in your practice would like to give back to the community through helping a non-for-profit company, Guardian Angel, prepare a master budget without charging them service fees. She asks you to take the lead on this engagement with the hope that a successful outcome may lead to your promotion to Senior Consultant. You take the background files from the partner and get started.

Guardian Angel is a non-for-profit organization that helps give street youth a second chance by providing them with business clothing and teaching them work related skills. The company is getting ready for a fundraiser by selling crystal angle wing key chains. The information below about Guardian Angel’s operations has been assembled to assist budget preparation. The company is preparing its master budget for the first quarter of 2014. The budget will detail each month’s activity and the activity for the quarter in total. The master budget will be based on the following information: