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:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.
Points: 200 / Assignment 1: Full Disclosure in Financial Reporting – Verizon CommunicationsCriteria / Unacceptable
Below 60% F / Meets Minimum Expectations
60-69% D / Fair
70-79% C / Proficient
80-89% B / Exemplary
90-100% A
1. 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.
Weight: 20% / Did not submit or incompletely discussed the disclosure requirement on accounting policies; did not submit or incompletely identified at least two (2) examples of the most commonly required disclosure. Did not submit or incompletely explained the key ways in which the examples you provided are useful to financial statement users. Did not submit or incompletely analyzed Verizon Communications’ disclosure on accounting policies; did not submit or incompletely gave your opinion on whether or not the information is helpful for decision making. Did not submit or incompletely provided a rationale for your response. / Insufficiently discussed the disclosure requirement on accounting policies; insufficiently identified at least two (2) examples of the most commonly required disclosure. Insufficiently explained the key ways in which the examples you provided are useful to financial statement users. Insufficiently analyzed Verizon Communications’ disclosure on accounting policies; insufficiently gave your opinion on whether or not the information is helpful for decision making. Insufficiently provided a rationale for your response. / Partially discussed the disclosure requirement on accounting policies; partially identified at least two (2) examples of the most commonly required disclosure. Partially explained the key ways in which the examples you provided are useful to financial statement users. Partially analyzed Verizon Communications’ disclosure on accounting policies; partially gave your opinion on whether or not the information is helpful for decision making. Partially provided a rationale for your response. / Satisfactorily discussed the disclosure requirement on accounting policies; satisfactorily identified at least two (2) examples of the most commonly required disclosure. Satisfactorily explained the key ways in which the examples you provided are useful to financial statement users. Satisfactorily analyzed Verizon Communications’ disclosure on accounting policies; satisfactorily gave your opinion on whether or not the information is helpful for decision making. Satisfactorily provided a rationale for your response. / Thoroughly discussed the disclosure requirement on accounting policies; thoroughly identified at least two (2) examples of the most commonly required disclosure. Thoroughly explained the key ways in which the examples you provided are useful to financial statement users. Thoroughly analyzed Verizon Communications’ disclosure on accounting policies; thoroughly gave your opinion on whether or not the information is helpful for decision making. Thoroughly provided a rationale for your response.
2. 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.
Weight: 15% / Did not submit or incompletely explained the importance of the management discussion and analysis section of an annual report. Did not submit or incompletely selected three (3) items from Verizon’s management and discussion analysis of the annual report that could be useful to potential investors. Did not submit or incompletely provided three (3) specific examples of how the three (3) items you selected could influence a potential investor’s decision to invest in Verizon. / Insufficiently explained the importance of the management discussion and analysis section of an annual report. Insufficiently selected three (3) items from Verizon’s management and discussion analysis of the annual report that could be useful to potential investors. Insufficiently provided three (3) specific examples of how the three (3) items you selected could influence a potential investor’s decision to invest in Verizon. / Partially explained the importance of the management discussion and analysis section of an annual report. Partially selected three (3) items from Verizon’s management and discussion analysis of the annual report that could be useful to potential investors. Partially provided three (3) specific examples of how the three (3) items you selected could influence a potential investor’s decision to invest in Verizon. / Satisfactorily explained the importance of the management discussion and analysis section of an annual report. Satisfactorily selected three (3) items from Verizon’s management and discussion analysis of the annual report that could be useful to potential investors. Satisfactorily provided three (3) specific examples of how the three (3) items you selected could influence a potential investor’s decision to invest in Verizon. / Thoroughly explained the importance of the management discussion and analysis section of an annual report. Thoroughly selected three (3) items from Verizon’s management and discussion analysis of the annual report that could be useful to potential investors. Thoroughly provided three (3) specific examples of how the three (3) items you selected could influence a potential investor’s decision to invest in Verizon.
3. 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.
Weight: 20% / Did not submit or incompletely described segmented information; did not submit or incompletely explained the way in which companies determine segments. Did not submit or incompletely identified at least three (3) advantages and three (3) disadvantages of segmented financial data. Did not submit or incompletely gave your opinion on whether or not the advantages outweigh the disadvantages. Did not submit or incompletely outlined the manner in which Verizon segments its financial data. Did not submit or incompletely suggested key actions that Verizon’s management can take in order to improve the company’s segmented financial data. Did not submit or incompletely provided a rationale for your response. / Insufficiently described segmented information; insufficiently explained the way in which companies determine segments. Insufficiently identified at least three (3) advantages and three (3) disadvantages of segmented financial data. Insufficiently gave your opinion on whether or not the advantages outweigh the disadvantages. Insufficiently outlined the manner in which Verizon segments its financial data. Insufficiently suggested key actions that Verizon’s management can take in order to improve the company’s segmented financial data. Insufficiently provided a rationale for your response. / Partially described segmented information; partially explained the way in which companies determine segments. Partially identified at least three (3) advantages and three (3) disadvantages of segmented financial data. Partially gave your opinion on whether or not the advantages outweigh the disadvantages. Partially outlined the manner in which Verizon segments its financial data. Partially suggested key actions that Verizon’s management can take in order to improve the company’s segmented financial data. Partially provided a rationale for your response. / Satisfactorily described segmented information; satisfactorily explained the way in which companies determine segments. Satisfactorily identified at least three (3) advantages and three (3) disadvantages of segmented financial data. Satisfactorily gave your opinion on whether or not the advantages outweigh the disadvantages. Satisfactorily outlined the manner in which Verizon segments its financial data. Satisfactorily suggested key actions that Verizon’s management can take in order to improve the company’s segmented financial data. Satisfactorily provided a rationale for your response. / Thoroughly described segmented information; thoroughly explained the way in which companies determine segments. Thoroughly identified at least three (3) advantages and three (3) disadvantages of segmented financial data. Thoroughly gave your opinion on whether or not the advantages outweigh the disadvantages. Thoroughly outlined the manner in which Verizon segments its financial data. Thoroughly suggested key actions that Verizon’s management can take in order to improve the company’s segmented financial data. Thoroughly provided a rationale for your response.
4. 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.
Weight: 20% / Did not submit or incompletely analyzed the various types of auditor’s reports; did not submit or incompletely determined the impact that the auditor’s report has on a company’s ability to obtain financing from a bank. Did not submit or incompletely identified the type of auditor’s report issued on Verizon; did not submit or incompletely speculated the manner in which you believe banks will perceive Verizon’s auditor’s report. / Insufficiently analyzed the various types of auditor’s reports; insufficiently determined the impact that the auditor’s report has on a company’s ability to obtain financing from a bank. Insufficiently identified the type of auditor’s report issued on Verizon; insufficiently speculated the manner in which you believe banks will perceive Verizon’s auditor’s report. / Partially analyzed the various types of auditor’s reports; partially determined the impact that the auditor’s report has on a company’s ability to obtain financing from a bank. Partially identified the type of auditor’s report issued on Verizon; partially speculated the manner in which you believe banks will perceive Verizon’s auditor’s report. / Satisfactorily analyzed the various types of auditor’s reports; satisfactorily determined the impact that the auditor’s report has on a company’s ability to obtain financing from a bank. Satisfactorily identified the type of auditor’s report issued on Verizon; satisfactorily speculated the manner in which you believe banks will perceive Verizon’s auditor’s report. / Thoroughly analyzed the various types of auditor’s reports; thoroughly determined the impact that the auditor’s report has on a company’s ability to obtain financing from a bank. Thoroughly identified the type of auditor’s report issued on Verizon; thoroughly speculated the manner in which you believe banks will perceive Verizon’s auditor’s report.
5.2 references
Weight: 5% / No references provided / Does not meet the required number of references, and / or references are of poor quality. / Meets the required number of references; some or all references poor quality choices. / Meets number of required references; all references high quality choices. / Exceeds number of required references; all references high quality choices.
6. Writing Mechanics, Grammar, and Formatting
Weight: 15% / Serious and persistent errors in grammar, spelling, punctuation, or formatting. / Numerous errors in grammar, spelling, and punctuation. / Partially free of errors in grammar, spelling, punctuation, or formatting. / Mostly free of errors in grammar, spelling, punctuation, or formatting. / Error free or almost error free grammar, spelling, punctuation, or formatting.