Highlights
Once you have again obtained the audited financial statements of your assigned company, focus on the following areas:
1. Statement of Financial Position (Balance Sheet)
a. Investments
b. Property, Plant and Equipment
c. Intangible Assets and Goodwill
2. Income Statement
a. Depreciation and Amortization
b. Any impairments?
3. Notes to the Financial Statements (for above items)
REQUIRED
In a word document, prepare a report that would include the following items:
1. Report the year-over-year dollar amounts for the above-mentioned items (present in chart format).
a. You should also expand and include all details of the dollar amounts presented in the financial statements. The details are presented throughout the audited financial statements. As an example: what is the depreciation method? How are investments accounted for? What is the accumulated depreciation amount? (present in chart format).
2. Review the notes to the financial statements. Analyze and then summarize the significant accounting policies that have been established as described in the notes to
the financial statements for each of the above items. (3-4 paragraphs).
3. Is there any information that seems to be a concern to you? Why or why not? Analyze and comment on the comparative financial information. (2-3 paragraphs).
a. Include any appropriate ratios (presented at the end of each chapter). Consider the relationship between revenue and fixed assets. Any other relationships to consider? Were there large variances year-over-year? Any indication of why the large variance occurred? Consider a comparison to another company in a similar industry.
4. What is your opinion about the significant accounting policies and procedures presented? How do the significant accounting policies presented in the notes to the
financial statements compare to the “disclosure” topics discussed in the textbook? (2-3 paragraphs).
5. Conclusion and wrap up. (1 paragraph).
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