Chapter 1
Recognition and Measurement
11
Application Questions Group A
AP-1A (
1
)
Greg Milgram, the CEO of Vloet Crove Ltd. (VC) was surprised to find a short article in the
morning newspaper about Molly Cleverly. She is the firm’s administrative assistant, but also
volunteers as a board director at a local not-for-profit organization called Save the Finch.
At this role, she made significant progress in the preservation of the domestic finch. Greg
decided to invite Molly to speak to VC shareholders at the upcoming convention and pulled
up a copy of Save the Finch financial statements to review, entertaining the possibility of
making a donation to the organization.
Required
a) What type of a financial statement user is Greg Milgram from the perspective of Vloet
Crove Ltd. and from Save the Finch?
b) What type of a financial statement user is Molly Cleverly from the perspective of Vloet
Crove Ltd. and from Save the Finch?
c) What type of financial statement users are the shareholders of Vloet Crove Ltd. from the
perspective of Vloet Crove Ltd. and Save the Finch?
