Discussion Questions- Accounting

Anonymous
timer Asked: May 7th, 2018
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Hey there,

I have posted 4 discussion questions that need to be answered. Please, when you submit your work mac sure that references are bellow each of the answers. Each question can be answered in a detailed paragraph or two.


Let me know if you have any questions.

1) 2) 3) ASC 815 recommends that a derivative be valued at its fair market value. Furthermore, in a cash flow hedge, the changes in the value are separated into the effective and non-effective portions. How does the separation of the changes in value impact other comprehensive income (OCI) and current income in the income statement? Why? Support your position with scholarly and peer-reviewed sources per the APA style of citation. Think about the different types of hedges. Select one type of hedge for further exploration. Under what circumstances would the hedge you chose be used? Why would it be the best option for a particular situation? How does this compare to other types of hedges? Support your position with scholarly and peerreviewed sources per the APA style of citation. Detecting Red Flags is important as the internal controls mechanism should define a specific approach for monitoring financial statements (and the base transactions below the consolidated statements) on an ongoing basis. In this discussion forum, please address the following situation: You are the controller of a global business unit of a major corporation. This business unit is comprised of 15 manufacturing plants globally, which roll up into consolidated business unit financials of which you are responsible. As a result, you are tasked with monitoring the financial results of the entire business unit, which entails ensuring that there are no fraudulent activities rolling up through your financial statements. 1. 2. 3. How would you design your monitoring system to handle this responsibility? What specific steps would you put in place to manage the global financial statements? If you did notice potentially questionable activity in one of your plants, how would you react? What would you do to investigate and address the issue? Please use these questions as you develop responses to your classmates' posts as well. 4) As you begin to assess the financial statements of a corporation, you would use many different tools. Please discuss the purpose of each tool/process below along with the insight that you would expect to attain from each: • Vertical and horizontal analysis of the income statement and balance sheet • Cash flow analysis • Deep-dive review of account balances • Ratio analysis You should also apply additional technical tools including: • • • • • • Structured Query Language (SQL) Open Database Connectivity (ODBC) Digital Analysis Outlier Investigation Stratification Summarization You should consider how each of these financial tools can provide insight into the company and help to develop a list of “red flags.”

Tutor Answer

PhDjack
School: Rice University

Attached please review. Kindly let me know if you have any question.
check_circle PhDjack marked this question as complete.

Running Head: ACCOUNTING

1

Discussion Questions- Accounting
Student Name
Professor Name
Course
Date

ACCOUNTING

2

Question 1
A hedge is a mechanism or a way to protect an individual investor from financial loss or other
such related financial circumstance. Basically, in preparing financial statements such as balance
sheet, an organization recognize derivatives instruments including assets and liabilities and those
instruments are measured at fair value (Song, 2013). In hedging the cash flow, the risk being
assessed is exposure to variability or violability, which is attributable to the risk and that has
effect on the income statement. Based on the insight that derivatives are used to mitigate risk
including currency or interest risks, the changes in the fair value is recorded in the income
statement (Machado, 2014). Hence, separation of the changes in value impact other
comprehensive income (OCI) and current income in the income statement.
References
Machado, M. J. (2014). Reliability in Fair Value of Assets without an Active Market. Advances
in Scientific and Applied Accounting, 319-338.
Song, X. (2013). Fair Value Accounting and Market Efficiency. SSRN Electronic Journal.
Question 2
In definiti...

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Anonymous
Wow this is really good.... didn't expect it. Sweet!!!!

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