Question: 1. Reference the professional judgment framework handout and application template separately provided.
2. As the controller, use your judgment to recommend the carrying value for the BOX A inventory at December 31, 2018. Using the professional judgment framework, complete the application template for all process steps and provide the appropriate information in the documentation column.
- In performing your analysis, you should use an Excel spreadsheet to support any calculations.
3. Using the information you documented regarding the overarching considerations and the specific considerations for each process step in the framework, use the tool below to document your judgment about the specific amount of write down you are recommending JK record in a draft memorandum format that you will provide to the CFO (not to exceed three pages). Be sure to include specific references to the applicable guidance and quote the applicable guidance. Also, attach your Excel spreadsheet with your calculations. Upon completing your documentation, make sure that you are able to answer the following considerations:
- Is the documentation sufficient to support your judgment?
- Can another professional understand how you reached your conclusion (including why reasonable outcomes and possible alternatives identified were not selected)?
Information related to above question is enclosed below:
Attachment:- Professional_judgment_framework_application_template.rar