The purpose of this Key Assignment is to get familiar with annual reports and to understand the financial implications of the following: •Equity method of accounting versus consolidation •Reporting of investments based on cost/equity •Goodwill reporting •Intercompany and intracompany transactions Access the company’s Web page on the Internet to read its most recent annual report. The annual report is typically found in an “Investor Relations” or “Company Information” section within the company’s Web site. If the company does not provide a full annual report, select another company for your project. Verify that the full annual report includes the following: •A letter or report to shareholders from the president of the company •A section providing management’s discussion and analysis of the business •A report from the auditor •The company’s financial statements •Supplemental notes to the financial statementsUsing the financial statements of your company (or companies), write a 1,000–1,500 word paper that addresses the following questions: •What GAAP principles govern the consolidation of financial statements? ◦How are consolidated and equity methods of accounting different? •What investments has the company made in affiliated companies? Examine its footnotes. ◦Comment on the accounting for investments in affiliated companies after looking at the footnotes. ◦List the investments it has. ◦Does it use cost basis or equity method of accounting, or both? ◦When do you use the equity method of accounting? •Goodwill is the difference between the acquired assets and acquired liabilities. ◦(Find a company that has goodwill). Examine the balance sheet and the footnotes. What is the goodwill related to? ◦What FASB covers the reporting and accounting of goodwill? ◦What is the difference between old goodwill reporting and new goodwill reporting?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more