Honey Bun Limited is a food processing company listed on the Jamaica Stock Exchange $($JSE$).$ They use the systems development life cycle to develop the capability to analyze what type of pastries sell best with different beverages honey Bun Limited and other food manufacturers have been using GAAP in preparing their financial statements. Recently, the JSE mandated that all companies should implement the IFRS system in addition to GAAP. Because Honey Bun Limited current system cannot handle the IFRS requirements, the financial reporting system must be modified.

Required

Explain what types of activities would occur in each of the five phases of the systems development life cycle in preparation for reporting financial results according to IFRS. $(10$ marks$)$

As part of effective IT planning in the systems development life cycle, the systems analyst recommends an economic feasibility analysis. Its purpose is report qualitative benefits that are difficult to quantify on an income statement. How would you suggest this be included in the economic feasibility analysis? $(10$ marks$)$

The head of the accounting department is not satisfied with the implementation of the new system. He believes that the new system will result in job losses for many of the bookkeepers. They are threatening industrial action. In your role as project sponsor, what should you do to resolve the situation? $(5$ marks$)$

Some members of the project management team of Honey Bun Limited believe that there needs to be a change of scope for the implementation of the IFRS phase, when should the project manager and project sponsor approve scope changes? When should they deny scope changes? $(5$ marks$)$