Solved by verified expert :Accounting research and communication examPART
I LETTER TO CLIENT
Part I
possible points: 30
YOU WERE
ASKED TO REVIEW THE WEBSITE AND RECENT FINANCIAL STATEMENTS FOR HOME
DEPOT CORPORATION.
Assignment: Prepare a 2 page (maximum) letter
addressed to the Accounting Manager of a new do-it-yourself retail company
(“UFix”) looking to setup accounting policies for their initial financial
statements. The Accounting Manager has asked you to search for Home Depot’s
financial statements. Find this company’s most recent financial statement
filing and discuss whether any current significant events should UFix take into
consideration. Also, the Accounting Manager is preparing for a meeting with
UFix’s Chief Financial Officer to discuss observations and best practices on
accounting policies based on the research you are being asked to do.
The letter should include
information on three areas, namely:
1.
What current events may
have an impact on the financial statements based on your research of Home
Depot’s recent financials? Cite/support how you found it?
2.
Significant accounting
policies – Which ones would you recommended as best practice?
3.
Your observations to assist
the Accounting Manager with the upcoming meeting with the Chief Financial
Officer.
Your letter format should
incorporate the methods discussed in the course textbook and class notes.
Please note: CLARITY and an
appropriate style of presentation is required for this professional letter. You
will be graded on the information provided, research support and the
manner/style in which the information is presented.
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PART II EFFECTIVE WRITING
Part II maximum points: 20
From the course textbook Effective
Writing,
a) Eighteen (18) guidelines
for effective writing were presented. List as many as you can.
(1 point for each correct item)
b) In your opinion, what
tools, techniques or methods would best suit the following scenarios to ensure
professional and effective communication? (1 point max per bullet item
below)
1.
Oral presentation to
your fellow students
2.
Accounting research
for the appropriate revenue recognition for a new product to your manager
3.
Presentation of a
significant conclusion to the client of an identified accounting issue where
the advice to be given is not based on any particular guidance but rather
professional judgment
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PART III
RESEARCH
Part III possible points: 20
a) What is revenue and how is
revenue recognized? Is there different guidance for software revenue
recognition? (5 points)
·
One page maximum response
with technical references from the FASB Codification (choose any organized
format for your response)
b) Given your studies
conducted during class on revenue recognition, please illustrate in anOUTLINEwhat you would present to a newly
appointed audit committee chairman of Lifesaver Software Company (“Lifesaver”).
Lifesaver is a company that owns hardware and writes proprietary software
that is used to monitor sick patients in hospitals. Also, include why
effective accounting research is often critical in determining the appropriate
revenue recognition policy for a company.
In addition, the audit committee chairman has
been asking questions about what Lifesaver’s accounting policy is on
capitalizing consulting fees incurred during the software development phase.
Use specific examples and any references to
relevant accounting guidelines in addressing these questions. Theoutlineshould be appropriately formatted and
written. Two pages maximum. (15 points)
