The new Board of Directors of your company met with the external auditors to
consider and approve the financial statements for the year ended 31st December
2019.
Some of the directors have argued that the use of the accounting concepts,
conventions, standards/principles and the underlying assumptions issued by the
International Financial Reporting Standards (IFRS) and adopted/applied both by the
Institute of Chartered Accountants (Ghana) and your company in the preparation
of the financial statements is waste of time and
resources and have outlived their
usefulness as they provide little or no room for management and accountants some
flexibility in treating certain items/transactions in their own way in the financial
statements as well as their inclusion in the Auditor’s Management Letters under
the heading “deficiency”. You are the only accountant among the seven (7)
member board of directors and serves as a chairperson of the Finance and
Administration Committee.
REQUIRED:
Write a report to the Chairman of the main board of directors of the company discussing the
sentiments of the directors proffering reasons for the relevance of such accounting principles
adopted/used in the preparation of the financial statements.
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