MGT223H5 Midterm: farmquestion (term test question).doc
Document Summary
Arnold siffle owns and operates a farm in leamington, ontario. He has operated the farm for fifteen years yet has never before prepared financial statements for any reason other than his personal tax return. Recent events, however, have caused him to fall behind on his mortgage payments. This has led the bank to request audited financial statements for the upcoming fiscal year end june 30, 2009. It is now may, 2009 and arnold has asked you, ca, to advise him on appropriate accounting policies. Important information to assist in your policy decision is included in exhibit one. Assume the role of ca and recommend appropriate accounting policies for the upcoming fiscal year end. Arnold"s farm operation includes raising chickens for sale and for their egg production; raising dairy cattle for their milk production and beef cattle for sale. He also grows a wide variety of fruits and vegetables for sale in the appropriate season.
