Engagement Guidelines

SL Financial Reporting (SLFR) Group is an accounting and finance firm that provides business owners the services needed to grow and succeed within the financial community in Second Life. SLFR Group exists to help virtual companies meet their specific financial reporting challenges.

As public and private companies are formed, certain business owners may either feel intimidated when producing the monthly financials to its investors or would focus more on efficiency on time utilization on business operations. SLFR Group serves to meet these needs.

To ensure that the needs are met, we have created an Engagement Guideline List for an efficient process and are listed as follows:

1. READING POLICIES
2. CLIENT FORM
3. SELECTION
4. PRICING
5. CONSENT FORMS
6. REMIT FIRST PAYMENT AND DOCUMENTATION
7. REVIEW DOCUMENTATION
8. PREPARE DOCUMENTATION
9. FINALIZE DOCUMENTATION
10. REMIT FINAL PAYMENT


READING POLICIES

Policies are essential and must be followed for any usage of service providers. Before continuing, please read the Linden Labs TOS. If you are a listed company, please read the Exchange’s Listing Policies. We have included the Exchange’s Listing Policies for your reference (and in no particular order): SL CAPEX, VSTEX, and ISE.

If you have read and agree to Linden Labs TOS and the Exchange’s Listing Policies, please continue.

SLFR Group Policies and Disclaimers are created to ensure the safety of our Firm and of the financial community. Our policies include Client Policy and Privacy Policy/Internal Guidelines. Before continuing, it is important that you read and understand our Disclaimers.

If you do not adhere to any of the policies and disclaimers listed above, please stop here.

If you adhere to all of policies and disclaimers listed above, please proceed.


CLIENT FORM

The client form is created for the prospective client to complete (in detail) regarding the requested services to determine if SLFR Group will accept the engagement. Any insufficient information may delay in the selection process.
*Note: If the mandatory fields are not complete, SLFR Group will automatically decline the engagement and is not required to send notice of status.


SELECTION

As part of the selection process, SLFR Group will determine if the engagement can be completed based on the information stated on the Client Form.
If we require additional information of the scope of services, we will contact you through e-mail only to determine a resolution.

We will send you an e-mail status of your Client Form. Requires two to four business days for review.

This is a first-come, first-serve basis.

*Note: If the information is not submitted within a certain timeframe, SLFR Group will consider declining the engagement due to lack of communication of the business owner.


PRICING

SLFR Group services are mainly to provide the financial community with the following:
- To translate the monthly financials in a way that the public can understand (Financial Statements Reporting)
- For management to confirm that they have itemized the costs correctly using the standard financial templates (Financial Statement Reporting/Professional Review)
- For Exchanges to determine a potential solution if any of the listed companies financials are being questioned (Audit)

The following services and fees are provided by SL Financial Reporting Group (may be modified without discretion):

Feel free to request an estimate of service fees at any time.

Financial Statements Reporting: Service includes collection and processing of transaction data, communication with owner(s) regarding transaction classification, and preparation of industry-specific Income Statement, Balance Sheet, and/or Statement of Retained Earnings in compliance with the Exchange listing. If desired, the financial statements can also be hosted via SLFRG's Google Documents storage. Requires four to six business days.

Public Firm: L$16,000
Private Firm: L$8,000


Financial Statements Reporting with MD&A: Service includes financial statements reporting with Management Discussion & Analysis (MD&A). The MD&A will provide you and your shareholders a complete understanding of the companies’ monthly financials and how these may impact the companies’ following month’s projections. This section will provide you and your shareholders with clear and concise commentary to understand your financial position better. If desired, the financial statements can also be hosted via SLFR Group’s Google Documents storage. Requires four to six business days.

Public Firm: L$24,000
Private Firm: L$12,000


Professional Review: Service includes confidential review of prepared financial statements (by SLFR Group or otherwise), and report of comments, concerns, and/or questions raised by the statements which it may benefit the company to answer before publishing.

Public Firm: L$2,500
Private Firm: L$1,000

Audit: Service includes review of prior transactions and financial statements prepared, report on reconciliation of said financial statements with the transactions, and recommendation for current and future changes. Requires five to seven business days.

Public Firm: L$40,000
Private Firm: L$30,000

Special Projects: Special projects include mediation, forensic accounting, derivative pricing, model-building, probability, present values (to be provided by Guardian Market) and financial analysis (to be provided by iVentures Group). Please contact either Guardian Market or iVentures Volitant to receive quotes on these projects.

Notes: For all projects, 50% of the fees are to be paid up front.

Disclaimers: Additional time and fees may be required based on the complexity of the project. Additional fees may apply for rush orders. Additional fees are required and paid per hour, varies for each accountant, for time spent through conversations on financials or for further research. Total payment must be paid in full prior to SLFR Group submitting complete financials.

SLFR Group reserves the right to refuse projects if an objective viewpoint cannot be secured. Fee structures may change based on volume of orders received.

For Financial Reporting Preparation and Professional Review, each fee includes only one month of financials. For example, if the prospective client submits January and February monthly financials, these will be considered as two pricing fees.

For Audit, this service will be available only to Exchanges. The fee will cover all monthly financials as originally stated on the Client Form. However, the pricing fee is subject to change based on the time spent through consultation during audit.
Once SLFR Group has determined the quote, we will send you an invoice based on the information originally submitted on the Client Form.

If you agree to our quote, please reply to our e-mail stating that you agree to the quote and we will send you Consent Forms to complete before proceeding.

If you do not agree to our quote, SLFR Group will automatically decline the engagement and is not required to send notice of status.

*Note: Pricing fees are not included based on the services not originally provided by SLFR Group. Additional services may be provided based on demand and scope of the project.


CONSENT FORMS

SLFR Group will submit certain Consent Forms for the prospective client to complete that will be electronically signed. This ensures our safety when providing you with services.

If you are a public or private firm who wishes for us to sign a Non-Disclosure Agreement (NDA) or require for SLFR Group to adhere, please submit and we will review.

If you adhere to the Consent Forms, please submit all signed copies through e-mail.

If you do not adhere to the Consent Forms, SLFR Group will automatically decline the engagement and is not required to send notice of status.


REMIT FIRST PAYMENT AND REQUIRED DOCUMENTATION

Once SLFR Group receives and/or submits the signed Consent Forms in agreement by both parties, the prospective client will include the invoice of our quote, remit 50% payment as up-front costs, and send appropriate documentation as originally stated in the Client Form. You will have 2-3 days to remit payment. SLFR Group will not provide services until the first 50% of payment is received.
We will send you an e-mail status once we receive payment. Please provide us 1-2 business days.


REVIEW DOCUMENTATION

SLFR Group will review the documentation received and the Client Form. Both must be in agreement as originally stated in the Client Policy.

*Note: If we believe that both documents are not in agreement, we may e-mail you for further clarification and may adjust the pricing fees as appropriately and resubmit our quote. You will have 2-3 days to submit a response. If no response is submitted, as stated in the Client Policy, you will lose your remitted payment and will not be refunded due to intent of deception and will no longer be SLFR Group client indefinitely.


PREPARE DOCUMENTATION

SLFR Group will prepare the documentation received. It is essential to ensure that all of the necessary documentation is submitted along with the detailed information regarding account titles, type of assets/expenses, etc. where we can appropriately categorize the assets and liabilities for the Income Statement and Balance Sheet.
If and during our preparation, we may e-mail the prospective client for further information based on the original submission to ensure accuracy and completeness.


FINALIZE DOCUMENTATION

SLFR Group will finalize the documentation received and populate the Management Discussion & Analysis (MD&A), if the prospective client has included this as part of their service.

If and during our final documentation, we may e-mail the prospective client for further information based on the original submission to ensure accuracy and completeness. This may not be necessary if the prospective client has submitted information in detail as requested.

Once the final documentation is complete, we will send you our report.
SLFR Group will only answer inquiries based on the MD&A submission included in the Financial Reporting Preparation with Management Discussion & Analysis, Professional Review, and Audit services. We will not answer any inquiries for the Financial Reporting Preparation only as this is not included as part of the service.


REMIT FINAL PAYMENT

The final invoice is based on the services rendered. You will have 1-2 business days after you receive our report and final invoice and remit full payment as originally stated.

*Any full payment not honored by the listed companies will lead to actions taken directly to Exchange for trading halt until full payment + penalty are received. We may also decline all future engagements.