This advisory letter addresses the impact of guaranteeing repair on any damage incurred to Steve Irwin Ship on profit, environmental reputation and net assets grid of Pewter Ltd Company. It highlights accounting concerns and provides recommendations. The damage cost of Steve Irwin should be accounted for as insurance cost that reduces the profitability aspect of the firm by the value equivalent to the damage provision utilized. The act of environmental competition concern is of great benefit to Pewter since it gives them an environment that is conducive for business since the goodwill earned by the act of repairing other competitors work equipment create assurance to investors and customers that their means of doing business is safe and friendly. The net asset increase is only possible if the cost incurred contributes to goodwill that is recognized as a result of the environmental concern of the market. The management is advised to continue to provide insurance provisions that are accounted appropriately as insurance expense and not marketing since they are just incidental to marketing unlike to insurance hence an aspect that helps them save and guarantees them business continuity as avoidance of litigation.
![[object Object]](/_next/image/?url=%2F_next%2Fstatic%2Fmedia%2Flogo.6d15ce61.png&w=640&q=75){kind=small}
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
