Attached is a copy of the week's research terms. Topics will be selected on a first come first serve basis. To claim a topic, go to this week’s discussion forum (below) and check what topics remain available. Select an available topic and start a new discussion thread by placing ONLY the topic in the Subject Line (do not put your name or anything else here). Leave the body of the thread blank and save the post. In weeks where there are insufficient topics for everyone; once all topics have been selected you may then start selecting from the entire list again. But there should never be three posts on the same topic – if so the last one posted will receive no credit. After your topic selection, research your selected topic in the university’s electronic library from only academic (refereed) journals. You will need at least three journal references and the textbook. Start your research with the textbook so it always grounds your topic. When your research is complete post it in the discussion forum below. Structure your paper as follows: Cover pageOverview describing the importance of the research topic to current business and professional practice in your own words.Purpose of Research should reflect the potential benefit of the topic to the current business and professional practice and the larger body of research.Review of the Literature summarized in your own words. Note that this should not be a “copy and paste” of literature content, nor should this section be substantially filled with direct quotes from the article. A literature review is a summary of the major points and findings of each of the selected articles (with appropriate citations). Direct quotations should be used sparingly. Normally, this will be the largest section of your paper (this is not a requirement; just a general observation).Practical Application of the literature. Describe how your findings from the relevant research literature can shape, inform, and improve current business and professional practice related to your chosen topic.Conclusion in your own wordsReferences formatted according to APA style requirements

Competency Assess the proper accounting for transactions with respect to deferred taxes and leases using the accounting codification and other accounting research tools. Scenario CM Corporation (CMC) was founded six years ago by Phil Connor and Eric Martin. The company designs, installs, and services security systems for high-tech companies. The founders, who describe themselves as "entrepreneurial geeks," met in a computer lab when they were teenagers and found they had common interests in working on security systems for critical industries. CMC hired you as a junior accountant this year. Lately, Connor and Martin have been working with "radio frequency identification" (RFID) technology. They have developed a detailed system designed to track inventory items using RFID tags embedded invisibly in products. This technology has numerous inventory applications in multiple industries. One of the most basic applications is tracking manufacturing components; if tagged components "go walking" (if employees attempt to take them), companies can easily track and find them. Connor and Martin have sold their system to several high-tech companies in the area. These companies have a number of government contracts that require extensive security systems to protect sensitive data from infiltration by terrorists and others. To date, CMC's cash flow from sales and services has adequately funded its operations. CMC expects much growth potential for its products. As a result, they are considering going public and expanding internationally in the near future. Instructions Last year, CMC recorded a deferred tax asset related to product warranties and a deferred tax asset related to accelerated depreciation. A 75% valuation allowance was also established. However, with an upcoming possible international expansion, Connor and Martin wonder if the company can now reduce or eliminate the valuation allowance. In addition, Connor and Martin are considering alternative financing arrangements for equipment to be used in the upcoming expansion. However, they have not used equipment leases in the past and would like more information. Per CMC's request, they would like you to research and present in a memorandum your findings on the accounting for leases under GAAP and IFRS and also report on the following topics: What are the sources of income that may be relied upon to remove the need for a valuation allowance? What are tax planning strategies? Could CMC possibly employ a tax-planning strategy to support reducing its valuation allowance? How does IFRS differ from GAAP regarding accounting for income taxes? Are there any major issues? What are the capitalization criteria for a capital lease? What comprises the lessee's minimum lease payments? What is excluded? How does IFRS differ from GAAP regarding accounting for leases? Are there any major issues? Memorandum Mechanics should be as follows: The body of the memorandum should be a professional presentation centered on clear and concise writing. The responses to the questions should be detailed, well researched, and specifically related to CMC's industry. Use the FASB Codification and IFRS to address all technical accounting issues presented in the questions, being certain to reference the applicable sections of the Codification and IFRS in your report.