1 . Describe the type of business you have created including : a . The product or service , and general staffing plan . Provide a rationale for your plan . b . The form of your business and the benefits it offers your particular business , c . A chart of accounts specific to your business , including a rationale as to the selection of each account . ( Note : The chart of accounts is a blueprint of your business for the lender / investor . It should report the expected resources that you will consume in your business ( assets ), the sources of those resources ( liabilities and equity ), the sources of revenue , and expenditures that you expect to incur to earn those revenues . You may build a detailed chart that includes business units , divisions , product lines , etc .)
2 . Based on the form of your business , analyze whether or not you will be required to use Generally Accepted Accounting Principles ( GAAP ) or International Financial Reporting Standards ( IFRS ) accounting methods and how the IFRS / GAAP convergence will impact your business .
3 . Suggest how you will incorporate any changes into your books and records . ( Note : You need to demonstrate to the lender / investor that you have recognized possible changes to GAAP that may impact the accounting and reporting of your accounting events .)
4 . Prepare a pro forma balance sheet and income statement providing the assumptions made and support the valuations assigned .
5 . Considering the value of assets ( assigned per your balance sheet ) used within your business , recommend two ( 2 ) specific internal controls that you will implement to protect your company ’ s assets and