Instructions
You are the Chief Financial Officer for Bio Innovations, a private company operating since 1993. Bio develops and markets cancer drugs, and recently became a cloud provider for medical centers. You recently joined the company and have been encouraging the founder and executive chair, Mary Cooper, to take the company public. Mary is reluctant to do that primarily because of the nature of the business and her belief that GAAP financial statements place the company in an unfavorable position, especially against the background of its significant research and development expenditure that is expected to continue for the foreseeable future. Mary met an investment banker during her recent family vacation and immediately called you into her office on her return to tell you of the interaction with the banker who mentioned something to her about non-GAAP reporting. Mary is unsure of what he meant by non-GAAP reporting and how such reporting would create a favorable position for Bio, were it to go public. She is also fearful that she would face penalties if a publicly listed Bio engaged in what seems like a dubious reporting practice. Mary reluctantly asks for your advice as the investment banker is encouraging her to take the company public and wants to make a formal presentation to Bios board on going public
You are excited to hear about this development as the main reason you joined the company is that you felt it was an excellent candidate for a listing on the New York Stock Exchange. Further, your involvement would be a major career achievement.
Required:
Write a memo to Mary to update her on non-GAAP reporting, allay her concerns and prepare her for the upcoming meeting with the investment banker. Restrict you memo to non-GAAP reporting and related matters.
Your memo, prepared with Microsoft Word, should conform to the following:
Proper business memo form.
One to two pages. It is very unlikely that you can satisfactorily prepare the memo on one page.
At least one Reference source, which should be from a regulator, CPA firm, or academic (not business or analyst) article. There is no restriction on sources beyond the minimum Reference source. Your textbook is not to be used as a listed source
References (s) are not part of the page count
Font is Times New Roman, 12 pt
Double line spacing
This is an individual assignment. Memos will be checked by Turnitin for plagiarism.
Due date: Submit to dropbox by 11:59 pm November 19. Use the following format to name your file: Section_Lastname_Fistname.docx. As an example, the filename for Mary Green who is in Section B is name is B_Green_Mary.docx. Note to use underscore as the separator not spacing.
Grading Rubric: You will be evaluated in three categories.
Structure: Effective use of paragraphs, proper development and presentation (6 points)
Content: Did you answer the question, use authoritative guidance, comprehensively address the issues (10 points)
Grammar: Spelling, verb tense, sentence structure (4 points)
