Marston Dairy Limited Marston Dairy Limited (Marston) is a dairy company operating in the Kawartha Region. The companys founder, Karen Marston, owns 70 percent of the shares. Three other private individuals, who have very little involvement in operating decisions, each own 10 percent. Marston produces milk, yogurt, ice cream, etc. that it sells through grocery stores and chains throughout Ontario. Over the years, labour and management have had a taxing relationship. Over the past ten years, the union representing Marstons employees have made significant wage concessions to avoid job losses. In the last contract negotiations, Marston and the union agreed that the union would have access to the companys financial statements. The upcoming negotiation will be the first time the union will receive the financial statements. You have been hired by the union representing Marstons employees to prepare a report on how to account for a number of controversial issues that arose on the unions review of Marstons December 31, 2021 financial statements and its preliminary discussions with Marstons management. The union will use your report in its assessment of Marstons financial position and performance, and its ability to pay higher wages and benefits to employees. Up until now, the company has followed ASPE, however, the union leader has asked whether IFRS would be more beneficial for the employees. The union leader has asked for your report to fully explain your recommendations, discuss arguments that Marstons management might use to counter your recommendations, and identify and discuss alternative treatments that Marston might present for the outstanding issues:

1. On December 31, 2021, Marston shipped a large order of $100,000 to a customer. Normally, Marston recognizes revenue on delivery (FOB Destination point) to the customer. The goods shipped werent included in the year-end inventory count. Marston uses a periodic inventory control system. The goods were delivered on January 2, 2022.

Required:

-Assess the Situation - What is the Issues

-GAAP/Analysis - Conclude & Advise