What interim reporting requirements would the company have as a corporation? Describe the guidance related to interim financial statements under GAAP and IFRS.

Prompt: In Milestone Two, you will submit a report as well as the necessary spreadsheets for Section II (Parts B–F) of the final project. You will discuss interim reporting requirements under generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS), as well as provide an example financial statement illustrating what the interim report should entail. You will also discuss reporting requirements for business segments and discuss transparency in financial reporting. Lastly, you will consider the company’s potential international business deals, such as the impact of foreign exchange rates and the methods for translating financial statements. You will also create a hypothetical example demonstrating the translation process, using the two methods, to submit with your paper.

 

Specifically, the following critical elements must be addressed:

 

  1. Corporation: The company is also considering structuring its business as a corporation, but is aware that there are a lot of complex issues to consider when accounting for an incorporated entity. The company is concerned about the following key areas:
  2. What interim reporting requirements would the company have as a corporation? Describe the guidance related to interim financial statements under GAAP and IFRS.
  3. Generate a hypothetical financial statement illustrating what that interim reporting entails. Ensure all information is entered accurately.
  4. Determine if the interim reporting requirements are the same under GAAP and IFRS. Provide an example to support your response.
  5. The company also heard that they may have to report some of their business segments separately if they opt to incorporate.
    1. Appraise one of the processes used to identify which segments would have to be reported separately. Provide examples to support your response.
    2. How is this process effective in supporting transparency in financial reporting? Defend your response.
    3. Provide suggestions to improve this process in an effort to sustain transparency. Defend your rationale. F. When incorporating, it is important to consider whether or not the company’s business deals internationally.
    4. Summarize the impact of foreign exchange rates on the company’s financial statements. What risks do foreign exchange rates pose?
    5. What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used?
    6. Compose a hypothetical example to demonstrate the translation process using the two methods. Ensure all information is entered accurately.

 

Guidelines for Submission: Your report must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources (in addition to your textbook) cited in APA format. Your accompanying spreadsheets must be submitted as Microsoft Excel files.

 

 

 

Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Corporation: Interim Reporting Describes the interim reporting requirements the company would have as a corporation and the guidance related to interim financial statements under GAAP and IFRS Describes the interim reporting requirements the company would have as a corporation but does not describe the guidance related to interim financial statements under GAAP and IFRS, or description is cursory or has inaccuracies Does not describe the interim reporting requirements 10
Corporation:

Financial

Statement

Generates a hypothetical financial statement illustrating what the interim reporting entails and ensures all information is entered accurately Generates a hypothetical financial statement illustrating what the interim reporting entails, but there are inaccuracies Does not generate a hypothetical financial statement 10
Corporation: GAAP and IFRS Determines if the interim reporting requirements are the same under GAAP and IFRS and provides an example to support response Determines if the interim reporting requirements are the same under GAAP and IFRS but example provided does not support response, or does not provide an example Does not determine if the interim reporting requirements are the same under GAAP and IFRS 10
Corporation: Segments Appraises one of the processes used to identify which segments would have to be reported separately and provides examples to support response Appraises one of the processes used to identify which segments would have to be reported separately but does not provide examples to support response, or appraisal

is cursory or has inaccuracies

Does not appraise one of the processes 10
Corporation: Transparency Evaluates the effectiveness of the process in supporting transparency in financial reporting and defends response Evaluates the effectiveness of the process in supporting transparency in financial reporting but does not defend response, or defense is weak or illogical Does not evaluate the effectiveness of the process in supporting transparency in financial reporting 10
Corporation:

Suggestions to Improve

Provides suggestions to improve the process and defends rationale Provides suggestions to improve the process but does not defend rationale, or

defense is weak or illogical

Does not provide suggestions to improve the process 10
Corporation: Impact Summarizes the impact of foreign exchange rates on the financial statements and determines the risks they pose Summarizes the impact of foreign exchange rates on the financial statements but does not determine the risks they pose, or summary is cursory or has inaccuracies Does not summarize the impact of foreign exchange rates on the financial statements 10
Corporation: Two Methods Describes the two methods used to translate financial statements and how the functional currency plays a role in determining which is used Describes the two methods used to translate financial statements but does not describe how the functional currency plays a role in determining which is used, or description is cursory or has inaccuracies Does not describe the two methods of translation 10
Corporation: Translation Process Composes a hypothetical example demonstrating the translation process using the two methods and ensures all information is entered accurately Composes a hypothetical example demonstrating the translation process using the two methods but example contains inaccuracies Does not compose a hypothetical example 10
Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10
 Total 100%

 

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