COMMERCE 3AC3 Study Guide - Midterm Guide: North American Free Trade Agreement, World Trade Organization, Deferral
29 May 2017
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Historically, the company has been profitable but this year it will break even; therefore, there may be pressure to boost earnings. Main users = bank it will be focusing on liquidity of company (current ratio, cash from operations) in determining whether to allocate additional resources. Government and wto may use the statements to assess whether duties are unreasonable. Auditors will be auditing the financial statements and will want to ensure there are no misstatements, since the company is looking for additional financing and due to the wto investigation. Gaap constraint since its shares trade on pse. As a publicly accountable entity, ifrs would be used. May want to present the company in its best light, since the increase in the line of credit will be dependent on whether the company looks like it is able to pay back the loan. Issue: how to account for the anti-dumping fee. The canadian government is appealing this levy to a global tribunal.
