memoMr. Dewey, a Senior Partner of the CPA firm Dewey, Cheatem, & Howe, after noting that many positivist-accounting theorists and rightwing economists recommend that general purpose financial statements (GPFS) be deregulated and let market forces control the quality of GPFS, has suggested that the role (and revenues) of independent external audit firms will be dramatically enhanced. Required: Give insight on this issue in a ½ to 1½ page Memo that is addressed to Mr. Tu Dewie and resolves his concerns.Mr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), is very excited about the opportunities created by fair-value revaluation of noncurrent assets. He believes that there is an enormous opportunity for large firms to increase their book profits via the gains from such revaluations.Required: Mr. Tu Dewie has asked you to review the AASB rules on the fair-market revaluation of non-current assets and to assess what profit enhancing opportunities may arise because of those rules. NB:Remember that while Mr. Dewey is the senior partner of DCH, Mr. Howe (as a junior partner) can hurt you if you are not polite and considerate.On 29 May 2012, the (Australian) Water Accounting Standards Board (WASB) passed the Australian Water Accounting Standard 1 Crystal Creek Falls (see Figure 1) is located between the Queensland (Australia) cities of Ingham and Townsville. Each week, a million hectare-metres of clean cool, clean, crystal clear water flow through it and on into the Pacific Ocean, 10 kilometres later. One of the farmers in the lower reaches of the river (Mr Douglas McKay) has converted his crops from waterintensive peaches to low-water use Acai Palms (see Figure 2). The above farmer has formed a corporation to juice and sell the Acai Palm Fruit – Majestic Acai Juice Australia Inc. (MAJAI). A key asset of MAJAI is the rights to 100,000 hectaremetres of water per week that the farmer transferred from his farm to MAJAI. NB: due to the change in use of the water (i.e. from irrigation to food processing) the water (which was previously taken from below the falls) will have to be taken from well above the falls. The falls is currently only minor tourist attraction but its value as a draw for tourists has been growing. Required: 1) Comment on whether or not the transfer of the water rights from the farm to the processing firm is going to be acceptable (explain). 2) Discuss the accounting issues that may be raised by the transfer of the water rights.

Memo
Paper details:
Prepare a 1,050- to 1,400-word memo to Rainier Ekstrom, Casa Bonita’s chief executive officer, in which you analyze risk and return tradeoffs associated with the organization’s investment portfolio. Address the following:
•Decisions you made in the simulation
•A discussion of how the Sharpe ratio helps make investment decisions
•Recommendations for changes in the organization’s investment strategy to improve its performance

Memo
Paper details:
Prepare a 1,050- to 1,400-word memo to Rainier Ekstrom, Casa Bonita’s chief executive officer, in which you analyze risk and return tradeoffs associated with the organization’s investment portfolio. Address the following:
•Decisions you made in the simulation
•A discussion of how the Sharpe ratio helps make investment decisions
•Recommendations for changes in the organization’s investment strategy to improve its performance