Annette Qupee is a senior accountant with Globalx, a shipping and logistics company based in Ontario. She has been tasked with improving the company's monthly financial reporting process. Globalx is required to send monthly financial statements to its bank within 30 days of month end. Presently, the company is averaging 45 days to provide the financial statements to its bank. Annette has been asked by her supervisor, Gurpreet Rahad, to prepare a memo outlining the qualitative characteristics of useful financial statements and how these principles can be applied to Globalx's monthly financial statement close process. Annette has the following document: - Appendix: Email from Gurpreet Rahad Complete the task in the Excel Task file. Appendix: Email from Gurpreet Rahad Gurpreet Rahad TO: Subject: Improvements to the financial statement close process Hi Annette, Thanks for meeting with me earlier this week. As we discussed, Globalx wants to get its monthly financial statement close process down from the current 45 days to 30 days, to comply with our lender's covenants. Here are key areas that have resulted in delays in the past, and the value of those transactions for the past three months. Hopefully this information will help you design a more efficient financial statement close process. Globalx's monthly income has remained fairly consistent for the last 24 months, thanks to improvements in how we manage our customer and supplier relationships. In July, we reported net income of $261,000. Thanks for your help with this project! Using the email from Gurpreet in the Appendix, complete the requested memo on qualitative characteristics of useful financial statements. Instructions: - The next four paragraphs end in a sentence that is bolded. You must decide how to best complete the sentence: you may leave the bolded comment in place (choose option 1) or replace it with an alternative comment. To: Gurpreet Rahad From: Annette Qupee Re: Qualitative characteristics of financial statements and suggested improvements to the financial statement close process The objective of general-purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors, in making decisions about providing resources to the entity. For information to be useful, it must be relevant and faithfully represent the nature of the underlying transaction. Relevance means that the financial information provided... accurately reflects the transactions undertaken by the entity. Globalx is currently focusing on improving the timeliness of its financial information, which means that the financial information provided... allows users to be able to compare one set of financial statements with another. Options: 1 allows users to be able to compare one set of financial statements with another. 2 allows different, knowledgeable, and independent observers to measure a transaction and agree that the reported result is correct, with a reasonable degree of precision. One of the areas causing delays in the financial reporting process is the gain/loss on investments. This is a significant account, as it accounts for approximately 20% of the net income reported. Getting this balance "right" is important because it has a significant impact on the decisions that the users of the financial statements will make. Currently, the monthly financial statement close process is delayed because the gains/losses are not recorded until the monthly investment statement arrives in the mail from the broker. To improve this, I recommend that Globalx... prepares the financial statements without this information included and adjusts only at the year end. Another area that is causing delays in the financial reporting process is the settlement of claims related to lost or delayed packages. Customers have up to 30 days to file a claim for a lost or delayed package, and Globalx has up to 30 days to investigate and locate the package. If the package cannot be located, the claim is settled. The final settlement costs for the month can take up to 60 days to determine. To improve this process, I recommend that Globalx... prepares the financial statements without this information included and adjusts only at the year end. Annette Qupee is a senior accountant with Globalx, a shipping and logistics company based in Ontario. She has been tasked with improving the company's monthly financial reporting process. Globalx is required to send monthly financial statements to its bank within 30 days of month end. Presently, the company is averaging 45 days to provide the financial statements to its bank. Annette has been asked by her supervisor, Gurpreet Rahad, to prepare a memo outlining the qualitative characteristics of useful financial statements and how these principles can be applied to Globalx's monthly financial statement close process. Annette has the following document: - Appendix: Email from Gurpreet Rahad Complete the task in the Excel Task file. Appendix: Email from Gurpreet Rahad Gurpreet Rahad TO: Subject: Improvements to the financial statement close process Hi Annette, Thanks for meeting with me earlier this week. As we discussed, Globalx wants to get its monthly financial statement close process down from the current 45 days to 30 days, to comply with our lender's covenants. Here are key areas that have resulted in delays in the past, and the value of those transactions for the past three months. Hopefully this information will help you design a more efficient financial statement close process. Globalx's monthly income has remained fairly consistent for the last 24 months, thanks to improvements in how we manage our customer and supplier relationships. In July, we reported net income of $261,000. Thanks for your help with this project! Using the email from Gurpreet in the Appendix, complete the requested memo on qualitative characteristics of useful financial statements. Instructions: - The next four paragraphs end in a sentence that is bolded. You must decide how to best complete the sentence: you may leave the bolded comment in place (choose option 1) or replace it with an alternative comment. To: Gurpreet Rahad From: Annette Qupee Re: Qualitative characteristics of financial statements and suggested improvements to the financial statement close process The objective of general-purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors, in making decisions about providing resources to the entity. For information to be useful, it must be relevant and faithfully represent the nature of the underlying transaction. Relevance means that the financial information provided... accurately reflects the transactions undertaken by the entity. Globalx is currently focusing on improving the timeliness of its financial information, which means that the financial information provided... allows users to be able to compare one set of financial statements with another. Options: 1 allows users to be able to compare one set of financial statements with another. 2 allows different, knowledgeable, and independent observers to measure a transaction and agree that the reported result is correct, with a reasonable degree of precision. One of the areas causing delays in the financial reporting process is the gain/loss on investments. This is a significant account, as it accounts for approximately 20% of the net income reported. Getting this balance "right" is important because it has a significant impact on the decisions that the users of the financial statements will make. Currently, the monthly financial statement close process is delayed because the gains/losses are not recorded until the monthly investment statement arrives in the mail from the broker. To improve this, I recommend that Globalx... prepares the financial statements without this information included and adjusts only at the year end. Another area that is causing delays in the financial reporting process is the settlement of claims related to lost or delayed packages. Customers have up to 30 days to file a claim for a lost or delayed package, and Globalx has up to 30 days to investigate and locate the package. If the package cannot be located, the claim is settled. The final settlement costs for the month can take up to 60 days to determine. To improve this process, I recommend that Globalx... prepares the financial statements without this information included and adjusts only at the year end