Académique Documents
Professionnel Documents
Culture Documents
Document design
o White space o Headings, bullets/numbers o Type treatment: bolding, italics, type sizes
Address Box
To: (check title & spelling) Cc: (individual professor) Bcc: (mystery reader) Subject: (essential)
Greeting (space) Purpose statement (space) Central points (spaces btw main points; employ bullets/lists carefully) (space before request for action)
Request for action & contact information (space) Closing (space) Signature
Purpose Statements
Conveys primary focus of communication Provide information
The following report provides an overview of the VSB Career Seminar that I attended on 11/17/12.
Request information/permission/action
Im writing to ask if you can forward the 3rd quarter data for my use in next weeks presentation.
Memo Format
Memo header w/ specific subject line
(space)
Central points
(spaces btw main points; employ bullets/lists) (space before request for action)
Sample Memo
MEMORANDUM TO: HARRY BANISTER, CEO FROM: NINA JAMES, Accounting Officer DATE: 8/30/2012 SUBJECT: ROCK CREEK NURSERIES ACQUISITION
This memo explains key concepts regarding goodwill and the valuation methods involved in your companys acquisition of Roc k Creek Nurseries (RCN) Determining the value of RCNs goodwill will provide you with a better sense of the companys true value, and therefo re assist you in solidifying the final offer price.
Definition of Goodwill Goodwill is an intangible asset on the balance sheet as it is not a physical asset (e.g. buildings and equipment). Goodwill usually reflects the value of intangible assets such as a strong brand name, good customer relations, good employee relations and proprietary technology. Ordinarily, the estimated value of the above mentioned items is taken into consideration during the valuation process. As such, the value of good will is incorporated into the offer price. With respect to RCN, the $350,000 estimate represents the companys book value and therefore does not include the value of go odwill and other intangible assets
Benefits of Goodwill RCN is a well established business with a strong brand name, excellent employee relations, and a large customer base. The above mentioned items are the key factors which will ensure the companys long term competitiveness and sustained profitability. For example, due to RCNs large customer base, Banister Nurseries (BN) will be able to cross -sell its products to a new range of customers and therefore increase revenue generation. In addition, the increased market share will solidify BNs no. 1 market position and ensure long term competitiveness and profitability. Similarly, RCNs exceptionally strong brand name recognition will ensure continued customer attraction and revenue generation . As BN will be acquiring your well recognized brand name, BN will be able to actually reduce its previous level of advertising expenses and improve profitability. In addition, RCNs excellent employee relations will ensure continued service consistency and quality. The above mentioned will also ensure smooth merger transition and retention of key employees. Furthermore, customer attrition risk will be minimized and customer satisfaction will be maximized. Therefore, BNs competitiveness and profitability will be ensured as the value of the franchise will be preserved.
Letter Format
Date
(space)
Greeting
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Central points
(spaces btw main points; employ bullets/lists) (space)
Closing
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Sample Letter
March 18, 2012 Hank Isaly, Chief Financial Officer RGC 22650 West Haven Drive Arlington, Texas 75527 Dear Mr. Isaly, Im responding to your inquiry regarding convergence to international accounting standards. This letter will provide an over view of international accounting standards, describe the impact international accounting standards have on financial statements, and explain how RGC can apply these standards for the first time. International Financial Reporting Standards International Financial Reporting Standards (IFRS) is a set of accounting standards issued by the International Accounting Standards Board (IASB). IFRS consists of 41 accounting standards designed to create accurate and reliable financial statements. Approximately 117 countries around the world, including all of Europe, require or permit IFRS reporting. U.S. GAAP vs. IFRS One of the most noticeable differences between IFRS and U.S. GAAP is that IFRS is a principles -based accounting approach, while U.S. GAAP is a rules-based accounting approach. This means that IFRS provides general guidance and a conceptual basis for accounta nts to follow, whereas U.S. GAAP is very rule-oriented and specific in its requirements. Other notable differences between the two standards are: Inventory IFRS only permits the use of LIFO (a method where the last units purchased are recorded as the first units sold) when recording inventory. In contrast, U.S. GAAP allows a company to choose between FIFO (first units purchased are recorded as the first units sold) or LIFO. Development Costs Under IFRS, these costs can be capitalized if they meet certain criteria. On the other hand, U.S. GAAP considers these costs to be expenses. Revenue Recognition IFRS guidance regarding revenue recognition is less extensive than GAAP and contains relatively little industry-specific instruction.
We greatly value our relationship with RGC and would like your continued business in preparing your financial statements according to IFRS standards. Please contact me at 610-322-1331 to further discuss this matter; I look forward to hearing from you.
Sincerely, Arthur J. Miller, CPA