Tritec Inc. (TI) is a leader in delivering communications technology that powers global commerce and secures the worlds most critical information. Its shares trade on the Canadian and U.S. national stock exchanges. The company had been experiencing unprecedented growth, but then, in 20X1, industry demand for the companys services and products declined dramatically due to an industry realignment, an economic downturn, and a tightening in global capital and product markets. By the end of 20X3, the industry stabilized, and the company began to enter a turnaround period after significant downsizing. In 20X3, employee morale was extremely low due to the downsizing. Many employees were being actively recruited away from TI. Management decided to set up bonus programs for employees who stayed to see the company through the difficult times and back to profitability. Under one plan, every employee would receive a bonus in the first quarter that the company achieved enough profit to cover the bonus costs. To help achieve profitability, the CFO met with the managers of his divisions and established profitability targets and what he called roadmaps that showed how these targets could be achieved. The roadmaps included financial statements indicating that a profit could be achieved, but only through the removal of excess provisions (that is, provisions for obsolete inventory and bad debts) from the statement of financial position. The provisions had been overprovided for in earlier years to manage profits. In 20X4, the company came under scrutiny from the securities regulators. The government notified the securities commission of a criminal investigation into alleged accounting irregularities. In addition, there were several class-action lawsuits outstanding against the company by shareholders alleging that TI had provided misleading information to them in the financial statements for 20X2 and 20X3. Once news of this was released, credit-rating agencies significantly downgraded the ratings of TIs securities. As a result of this negative activity, the company did not release its financial statements for 20X4 and is now in breach of stock exchange requirements to file financial statements. Although the stock exchanges did not do so, they have the power to delist TIs shares. The controller of TI must now finalize the financial statements and has come across the following information: During the year, the company signed contracts to sell optical software products. Before year end, the company shipped out what it called an interim product solutionin other words, the optical software product ordered by the company was not yet ready in its final form, so the company shipped a beta or draft version of it. This interim product would be followed shortly by the final version. Revenues were recognized on shipment of the interim product solution, as it was believed that the final version just needed minor refinements. The customers generally paid more than half of what was owed under the contract when they received the interim product solution. It was rare for customers to back out of this type of contract for any reason. In 20X3, TI had purchased a subsidiary of DEF Inc. and agreed to pay additional future consideration for the purchase (the consideration would take the form of additional TI shares). The additional consideration was a function of the profitability of the subsidiary.

The more profitable the subsidiary, the more shares that TI would issue as consideration. Given that TIs shares are highly volatile, TI and DEF agreed that the number of shares to be issued should be based on the average price per share in the three months prior to the future issuance date of the shares. So far, the subsidiary has been performing above expectations. By the end of 20X4, TI was still restructuring to streamline its core operations and activities. Part of the restructuring included abandoning its voice-over-fibre operations. The operations would be closed in early 20X5, and this would involve workforce reductions and abandonment of plant and equipment.

Required:

This is a intermediate financial accounting course level. These are the case studies you should be analyzing. Please answer the questions below by citing IFRS/IAS Standards (examples are shown above). Also, don't forget to use the citations(IFRS/IAS Standards) at the end of your answer.

1) Conduct a Comprehensive Review of Financial Statements (length between half page to one page): Ensure that the financial statements present a true and fair view of the company's financial position. Reassess the adjustments made to provisions and consider rectifying any potential misstatements. Consultation with legal counsel, external auditors, and financial experts might be necessary to ensure compliance with accounting standards, regulatory requirements, and ethical considerations in financial reporting amidst the challenging circumstances faced by TI.

2) Address Restructuring Costs: Evaluate the costs associated with abandoning voice-over-fibre operations. Determine impairment of assets, potential write-offs, and provisions for workforce reductions or severance costs as per accounting standards. The followings are what I have analyzed so far. Please add more comments on this. (length between five to six sentences)

> "Undertaking the duties of Tritec Inc. (TI) controller necessitates a thorough examination of the current state of financial reporting difficulties. A crucial element that requires careful consideration is exploring the complexities of restructuring expenses related to the strategic choice to forgo voice-over-fiber operations. This complex analysis comprises a thorough assessment of potential asset impairments, which includes a close examination of the carrying values in relation to recoverable amounts, careful thought of potential write-offs in compliance with accounting principles, and the prudent creation of provisions for workforce reductions or anticipated severance costs, all of which must strictly conform to the relevant accounting standards governing such financial considerations."