Describe the guidance related to interim financial statements under GAAP and IFRS



ACC 690 Milestone Two Guidelines and Rubric

Overview: The final project for this course is the creation of a portfolio consisting of a report and spreadsheets. You will be placed in a real-world scenario in which you will take the role of an associate in a certified public accountant (CPA) firm. The CPA partners in the scenario would like to help you grow within the firm by getting you more contact with some of the larger clients. You will address questions from one of the firm’s most influential and growing clients by assembling the necessary information in the report. Your report should include spreadsheet examples. Topics addressed in the portfolio will cover partnership formation, bankruptcy, and acquisition of another company (which may be international).

Your three milestone assignments will consist of shorter reports and supporting spreadsheets. You should use your instructor’s feedback from the milestone submissions to improve your final report and spreadsheets.

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:

II. 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:

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

Generate a hypothetical financial statement illustrating what that interim reporting entails. Ensure all information is entered accurately.

Determine if the interim reporting requirements are the same under GAAP and IFRS. Provide an example to support your response.

The company also heard that they may have to report some of their business segments separately if they opt to incorporate.

Appraise one of the processes used to identify which segments would have to be reported separately. Provide examples to support your response.

How is this process effective in supporting transparency in financial reporting? Defend your response.

Provide suggestions to improve this process in an effort to sustain transparency. Defend your rationale.

 When incorporating, it is important to consider whether or not the company’s business deals internationally. method is used?

Summarize the impact of foreign exchange rates on the company’s financial statements. What risks do foreign exchange rates pose?

What are the two methods used to translate financial statements and how does the functional currency play a role in determining which

3. Compose a hypothetical example to demonstrate the translation process using the two methods. Ensure all information is entered accurately

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