Reference no: EM131271002

Question #1

The Financial Accounting Standard's Board has created the Codification in order to put together topically, in a single location the authoritative guidance for US GAAP.

REQUIRED:

1. Explain how the Codification improves financial accounting research since the time it was inaugurated in September 2009.

2. Explain what additional documents that professional accountants should use in addition to the Codification. List at least one circumstance when these additional documents should be used.

Question #2

Certain company disclosures about its financial reporting practices are required by US GAAP.

REQUIRED:

1. Select one of the areas studied in this class: Extraordinary and Discontinued Items; Sale leasebacks; Leases; Intangible Assets, Liquidation Basis of Accounting. Explain how this topic appears in financial statements under GAAP -- recognition, measurement, and disclosure. Explain what investors can learn about a company by attending to company disclosures of its financial reporting practices in the area you selected.

2. Name one improvement in US GAAP financial reporting that you would recommend for the benefit of investors and creditors in one of the five areas studied ( Extraordinary and Discontinued Items; Sale leasebacks; Leases; Intangible Assets, Liquidation Basis of Accounting). Provide a clear description of the improvement and support your recommendation.

Question #3

You are the controller for ABC Company, and your company has just had its initial transaction in an area entirely new to the company. Provide a list of the steps you would undertake in order to decide on the appropriate financial reporting for this transaction.

Question #4

You have read at least eight different articles from the professional accounting literature during the first half of this course. Select one article and explain how the article addressed each of the following:

1. What is the research question addressed in the article?

2. How will this article impact your understanding of or practice of financial reporting?

Question #5

Companies are both a primary source of financial information about their financial reporting and a potentially biased provider of that information.

REQUIRED

1. Explain the difference between primary sources of information and secondary sources of information.

2. What is the role of secondary sources of financial information? Identify at least two secondary sources, and discuss their advantages and disadvantages compared to company SEC filings.

3. If you suspect that a company has poor quality reported earnings, explain how would you investigate the company and its financial reporting to assess the quality of their reported earnings.