Reference no: EM132643341

ACCT3332 Intermediate Financial Accounting - University of Texas at Dallas

Assignment Requirements

Per the syllabus, the Footnote Assignment requirements are as follows: Choose a public company and access the 10-K Filing at webiste sec. Click "Company Filings" in the top-right corner and search by company name. Look for a document filed under "10-K", click the "Documents" icon next to the "10-K" and click the first link ending in ".htm".

The Footnote Assignment requires you to choose the following:

• One footnote that pertains to a topic covered for Exam 1 (current liabilities, long-term liabilities, or investments).
• One footnote that pertains to a topic covered for Exam 2 (leases, stockholder's equity, dilutive securities, or earnings per share).

The footnotes can be accessed in the 10-K Filing by clicking "Item 8 - Financial Statements and Supplementary Data". Do not select Note 1 - Summary of Significant Accounting Policies.

The Footnote Assignment must be submitted using the Turnitin Assignment Tool in eLearning. The selected footnotes should be copied into the Tool and students should add their own commentary (minimum 5 to 6 sentences) for each footnote, which may include the following:

• Why the footnote is important to the corporation;
• Highlighting a specific aspect of the footnote;
• How has the footnote changed in response to new guidance;
• Anything you feel is important for a reader to know, etc.

Note: Students who plagiarize or copy commentary from other students will receive a zero for their assignment. No late assignment submissions will be accepted.

Navigating EDGAR

The remainder of the document will demonstrate how to locate the footnotes in the financial statements. Download your company's latest 10-K either off of their website or from EDGAR (recommended). See illustration below using Twitter's 10-K as an example using EDGAR.

I typed in Twitter as the Company Name and a bunch of different filings were found for Twitter. In order to filter out the search results, I limited the filing type to 10-K only as shown below. I then clicked on the documents button next to the latest 10-K filing.

On the resultspage, I clicked on the 10-K type file .htm link as shown below. This should be the complete HTM version of your company's 10-K. Notice there are various exhibits and graphics linked below the 10-K type file. Sometimes these exhibits and graphics are published separately from the 10-K type file. You may want to quickly go through them in order to make sure you are not skipping any important supplemental information.

Now that you have your company's latest 10-K pulled up, it's time to discuss how to read a 10-K. The SEC has established the disclosures that are required in a 10-K as well as how the information should be presented. As a result, you'll notice that all 10-Ks are organized the same and present the same information regardless of the company filing. Below is a screen shot of Twitter's table of contents. This should be page 2 of your 10-K.

Notice that there are 16 Items disclosed. The order of these items and requirements of each item is set by the SEC. For this assignment, you are required to select and discuss a footnote disclosure. This is a specific type of disclosure found within Item 8 in all 10-Ks. Item 8 is arguably the most important section to investors. Why? Item 8 contains the audited financial statements and the accompanying audited notes or footnotes to the financials. No audit opinion is issued on the other Items besides Item 8. All footnote disclosures are found in Item 8 following the financial statements. The number of footnotes disclosed in Item 8 varies by company. Typically, large and complex companies will have many footnotes while smaller companies may have fewer. The footnotes are meant to be used as supplementary information to the financial statements.

Attachment:- Intermediate Financial Accounting.rar