Full Disclosure in Financial Reporting: Verizon Communications Name: Course title: Course number: Institutional Affiliation: Full Disclosure in Financial Reporting: Verizon Communications Disclosure Requirement in Accounting Policies (200) The financial statements of a business are important as they give a representation of the current state of affairs of an enterprise. A factor that has a direct influence on the financial results of a company is the accounting policies it uses. Accounting policies can be defined as the policies and procedures that the financial management team in a business uses in the creation of financial statements (Alexander & Archer 2008). The use of accounting policies varies from business to business depending on factors such as the size or the industry that it belongs. The reason why disclosure of accounting policies is important is due to the fact that businesses may use creative accounting or it may cook its books with the of financing it can offer and the collateral that the firm may have to surrender. Banks usually require audits from independent third parties and a negative report such as an adverse opinion may result in a company being denied financing. Verizon’s Auditor’s Report Verizon’s auditor report was conducted by Ernst & Young LLP and it received an unmodified opinion. In addition the auditor gave the firm a clean bill of health as its financial records wherein compliance with GAAP. Banks will perceive the audit of Verizon as an indication that the firm is operations and financial status are in good health and it is likely to provide the organization with financing if required. References Taylor S. White A. Barden P. & Deloitte & Touche. (2008). Financial reporting in Hong Kong. Hong Kong: CCH Hong Kong. Alexander D. & Archer S. (2008). International Accounting/Financial Reporting Standards Guide 2009. Chicago: CCH. [...]
Assignment 1: Full Disclosure in Financial Reporting – Verizon Communications Due Week 9 and worth 200 points According to the textbook, the goal of financial reporting is to report financial information that is transparent and complete and truthfully report the financial performance of a company. Investors and other interested parties need to read and understand all aspects of financing reporting. Use the Internet to research Verizon Communications’ financial statements, annual report, notes to the financial statements, president’s letter, and management discussion and analysis from the most recent year in order to complete this assignment. Write a five to six (5-6) page paper in which you: Discuss the disclosure requirement on accounting policies, and identify at least two (2) examples of the most commonly required disclosure. Explain the key ways in which the examples you provided are useful to financial statement users. Analyze Verizon Communications’ disclosure on accounting policies, and give your opinion on whether or not the information is helpful for decision making. Provide a rationale for your response. Explain the importance of the management discussion and analysis section of an annual report. Select three (3) items from Verizon’s management and discussion analysis of the annual report that could be useful to potential investors. Provide three (3) specific examples of how the three (3) items you selected could influence a potential investor’s decision to invest in Verizon. Describe segmented information, and explain the way in which companies determine segments. Identify at least three (3) advantages and three (3) disadvantages of segmented financial data. Give your opinion on whether or not the advantages outweigh the disadvantages. Outline the manner in which Verizon segments its financial data. Suggest key actions that Verizon’s management can take in order to improve the company’s segmented financial data. Provide a rationale for your response. Analyze the various types of auditor’s reports, and determine the impact that the auditor’s report has on a company’s ability to obtain financing from a bank. Identify the type of auditor’s report issued on Verizon, and speculate the manner in which you believe banks will perceive Verizon’s auditor’s report. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: Analyze and explain the requirements for full disclosure in financial reporting. Evaluate the importance and impact of full disclosure or non-disclosure in accounting practices. Use technology and information resources to research issues in intermediate accounting. Write clearly and concisely about intermediate accounting using proper writing mechanics.