Case Study

The board of directors of Green Company decide to discuss the past years results before releasing financial statements to the bank. They conclude that, This has not been a good year! Revenue is down, and expenses are way up. What should we do to get the bank loan? . One of the stockholder suggests to temporarily transfer some land that he owns into the companys name.

Requirements :

1- What would be the impact of this suggestion on the balance sheet of the company?

2- How can this suggestion help the company to get the loan from the bank?

3- What should the accountant of the company do?

4- What would you do and what would you suggest?