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Client Understading

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Submitted By camelliaellis
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Client Understanding Paper
ACC/541
Camellia Ellis
September 1, 2014
Michael Meyer

MEMO
TO: Client
FROM: Camellia Ellis, Staff I
DATE: September 1, 2014
SUBJECT: Questions on requested information
First and foremost, as a part of this organization, we would like to thank you for allowing this company the opportunity to work together with you on this project. Upon reviewing and analyzing the papers submitted by your company, I have been made aware of some additional information that is needed. As with any project that this company takes on and chooses to consult on we like to ensure that our clients are happy and satisfied with our completed work. The information that you have provided to us has raised a few questions and we will need additional information to further complete our analysis. I understand that you have concern or questions as to why we will need this additional information. The particular areas that we will need additional information on which is of concern to you are adjusting lower cost of market inventory on valuation, capitalizing interest on building construction, recording gain or loss on asset disposal, and adjusting goodwill for impairment. This memo will explain why we need this additional information. Overall the additional information will give your company the best analysis of your work on your project.

First we will need additional information on adjusting lower cost of market inventory on valuation. As we both know inventory within any company or organization is very important. The generally accepted accounting principles require that a company reports its inventory at either its lower of cost or market. Inventory is important for a company to assess because of the affect it has on a company’s cost of goods sold, its current assets, working capital, and its current ratio. As accountants, inventory valuation needs to be assessed within

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