Paper on Full Disclosure in Financial Reporting – Verizon Communications

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Business Finance

Intermediate accounting 3

Description

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.

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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 Communications Meets Minimum Unacceptable Expectations Fair Proficient Exemplary Below 60% F 60-69% D 70-79% C 80-89% B 90-100% A 1. Discuss the Did not submit or Insufficiently Partially Satisfactorily Thoroughly disclosure incompletely discussed the discussed the discussed the discussed the requirement on discussed the disclosure disclosure disclosure disclosure accounting disclosure requirement on requirement on requirement on requirement on policies, and requirement on accounting accounting accounting accounting identify at least accounting policies; policies; partially policies; policies; two (2) examples policies; did not insufficiently identified at least satisfactorily thoroughly of the most submit or identified at least two (2) examples identified at least identified at least commonly incompletely two (2) examples of the most two (2) examples two (2) examples required identified at least of the most commonly of the most of the most disclosure. two (2) examples commonly required commonly commonly Explain the key of the most required disclosure. required required ways in which commonly disclosure. Partially disclosure. disclosure. the examples you required Insufficiently explained the key Satisfactorily Thoroughly provided are disclosure. Did explained the key ways in which explained the key explained the key useful to not submit or ways in which the examples you ways in which ways in which financial incompletely the examples you provided are the examples you the examples you statement users. explained the key provided are useful to provided are provided are Analyze Verizon ways in which useful to financial useful to useful to Communications’ the examples you financial statement users. financial financial disclosure on provided are statement users. Partially statement users. statement users. accounting useful to Insufficiently analyzed Verizon Satisfactorily Thoroughly policies, and give financial analyzed Verizon Communications’ analyzed Verizon analyzed Verizon your opinion on statement users. Communications’ disclosure on Communications’ Communications’ whether or not Did not submit or disclosure on accounting disclosure on disclosure on the information is incompletely accounting policies; partially accounting accounting helpful for analyzed Verizon policies; gave your policies; policies; decision making. Communications’ insufficiently opinion on satisfactorily thoroughly gave Provide a disclosure on gave your whether or not gave your your opinion on rationale for your accounting opinion on the information is opinion on whether or not response. policies; did not whether or not helpful for whether or not the information is Weight: 20% submit or the information is decision making. the information is helpful for incompletely helpful for Partially helpful for decision making. gave your decision making. provided a decision making. Thoroughly opinion on Insufficiently rationale for your Satisfactorily provided a whether or not provided a response. provided a rationale for your the information is rationale for your rationale for your response. helpful for response. response. decision making. Did not submit or incompletely provided a rationale for your response. 2. Explain the Did not submit or Insufficiently Partially Satisfactorily Thoroughly importance of the incompletely explained the explained the explained the explained the management explained the importance of the importance of the importance of the importance of the discussion and importance of the management management management management Criteria analysis section management discussion and discussion and discussion and discussion and of an annual discussion and analysis section analysis section analysis section analysis section report. Select analysis section of an annual of an annual of an annual of an annual three (3) items of an annual report. report. Partially report. report. from Verizon’s report. Did not Insufficiently selected three (3) Satisfactorily Thoroughly management and submit or selected three (3) items from selected three (3) selected three (3) discussion incompletely items from Verizon’s items from items from analysis of the selected three (3) Verizon’s management and Verizon’s Verizon’s annual report that items from management and discussion management and management and could be useful to Verizon’s discussion analysis of the discussion discussion potential management and analysis of the annual report that analysis of the analysis of the investors. discussion annual report that could be useful to annual report that annual report that Provide three (3) analysis of the could be useful to potential could be useful to could be useful to specific examples annual report that potential investors. potential potential of how the three could be useful to investors. Partially investors. investors. (3) items you potential Insufficiently provided three Satisfactorily Thoroughly selected could investors. Did not provided three (3) specific provided three provided three influence a submit or (3) specific examples of how (3) specific (3) specific potential incompletely examples of how the three (3) examples of how examples of how investor’s provided three the three (3) items you the three (3) the three (3) decision to invest (3) specific items you selected could items you items you in Verizon. examples of how selected could influence a selected could selected could Weight: 15% the three (3) influence a potential influence a influence a items you potential investor’s potential potential selected could investor’s decision to invest investor’s investor’s influence a decision to invest in Verizon. decision to invest decision to invest potential in Verizon. in Verizon. in Verizon. investor’s decision to invest in Verizon. 3. Describe Did not submit or Insufficiently Partially Satisfactorily Thoroughly segmented incompletely described described described described information, and described segmented segmented segmented segmented explain the way segmented information; information; information; information; in which information; did insufficiently partially satisfactorily thoroughly companies not submit or explained the explained the explained the explained the determine incompletely way in which way in which way in which way in which segments. explained the companies companies companies companies Identify at least way in which determine determine determine determine three (3) companies segments. segments. segments. segments. advantages and determine Insufficiently Partially Satisfactorily Thoroughly three (3) segments. Did identified at least identified at least identified at least identified at least disadvantages of not submit or three (3) three (3) three (3) three (3) segmented incompletely advantages and advantages and advantages and advantages and financial data. identified at least three (3) three (3) three (3) three (3) Give your three (3) disadvantages of disadvantages of disadvantages of disadvantages of opinion on advantages and segmented segmented segmented segmented whether or not three (3) financial data. financial data. financial data. financial data. the advantages disadvantages of Insufficiently Partially gave Satisfactorily Thoroughly gave outweigh the segmented gave your your opinion on gave your your opinion on disadvantages. financial data. opinion on whether or not opinion on whether or not Outline the Did not submit or whether or not the advantages whether or not the advantages manner in which incompletely the advantages outweigh the the advantages outweigh the Verizon segments gave your outweigh the disadvantages. outweigh the disadvantages. its financial data. opinion on disadvantages. Partially outlined disadvantages. Thoroughly Suggest key whether or not Insufficiently the manner in Satisfactorily outlined the actions that the advantages outlined the which Verizon outlined the manner in which Verizon’s outweigh the manner in which segments its manner in which Verizon segments management can disadvantages. Verizon segments financial data. Verizon segments its financial data. take in order to Did not submit or its financial data. Partially its financial data. Thoroughly improve the company’s segmented financial data. Provide a rationale for your response. Weight: 20% incompletely Insufficiently suggested key Satisfactorily suggested key outlined the suggested key actions that suggested key actions that manner in which actions that Verizon’s actions that Verizon’s Verizon segments Verizon’s management can Verizon’s management can its financial data. management can take in order to management can take in order to Did not submit or take in order to improve the take in order to improve the incompletely improve the company’s improve the company’s suggested key company’s segmented company’s segmented actions that segmented financial data. segmented financial data. Verizon’s financial data. Partially financial data. Thoroughly management can Insufficiently provided a Satisfactorily provided a take in order to provided a rationale for your provided a rationale for your improve the rationale for your response. rationale for your response. company’s response. response. segmented financial data. Did not submit or incompletely provided a rationale for your response. 4. Analyze the Did not submit or Insufficiently Partially Satisfactorily Thoroughly various types of incompletely analyzed the analyzed the analyzed the analyzed the auditor’s reports, analyzed the various types of various types of various types of various types of and determine the various types of auditor’s reports; auditor’s reports; auditor’s reports; auditor’s reports; impact that the auditor’s reports; insufficiently partially satisfactorily thoroughly auditor’s report did not submit or determined the determined the determined the determined the has on a incompletely impact that the impact that the impact that the impact that the company’s ability determined the auditor’s report auditor’s report auditor’s report auditor’s report to obtain impact that the has on a has on a has on a has on a financing from a auditor’s report company’s ability company’s ability company’s ability company’s ability bank. Identify the has on a to obtain to obtain to obtain to obtain type of auditor’s company’s ability financing from a financing from a financing from a financing from a report issued on to obtain bank. bank. Partially bank. bank. Thoroughly Verizon, and financing from a Insufficiently identified the Satisfactorily identified the speculate the bank. Did not identified the type of auditor’s identified the type of auditor’s manner in which submit or type of auditor’s report issued on type of auditor’s report issued on you believe incompletely report issued on Verizon; partially report issued on Verizon; banks will identified the Verizon; speculated the Verizon; thoroughly perceive type of auditor’s insufficiently manner in which satisfactorily speculated the Verizon’s report issued on speculated the you believe speculated the manner in which auditor’s report. Verizon; did not manner in which banks will manner in which you believe Weight: 20% submit or you believe perceive you believe banks will incompletely banks will Verizon’s banks will perceive speculated the perceive auditor’s report. perceive Verizon’s manner in which Verizon’s Verizon’s auditor’s report. you believe auditor’s report. auditor’s report. banks will perceive Verizon’s auditor’s report. 5. 2 references No references Does not meet Meets the Meets number of Exceeds number Weight: 5% provided the required required number required of required number of of references; references; all references; all references, and / some or all references high references high or references are references poor quality choices. quality choices. of poor quality. quality choices. 6. Writing Serious and Numerous errors Partially free of Mostly free of Error free or Mechanics, persistent errors in grammar, errors in errors in almost error free Grammar, and in grammar, grammar, grammar, grammar, Formatting Weight: 15% spelling, punctuation, or formatting. 7. Appropriate Lack of in-text use of SWS in- citations and / or text citations, lack of reference reference section section. and format Weight: 5% spelling, and punctuation. spelling, punctuation, or formatting. In-text citations In-text citations and references and references are given, but not are provided, but in SWS format. they are only partially formatted correctly in SWS style. spelling, spelling, punctuation, or punctuation, or formatting. formatting. Most in-text In-text citations citations and and references references are are error free or provided, and almost error free they are generally and consistently formatted formatted correctly in SWS correctly in SWS style. style.
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Running head: FULL DISCLOSURE IN FINANCIAL REPORTING

Full Disclosure in Financial Reporting
Name
Institution
Date

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FULL DISCLOSURE IN FINANCIAL REPORTING

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Introduction
The operations of all departments in an organization are linked together by the
Accounting and Finance department. Financial reporting is a very critical and a very important
task in any organization considering regulatory and statutory requirements, and the number of
stakeholders who are involved in an organization who include creditors, investors, debt
providers, public, government agencies, and governments. It plays a crucial role in corporate
governance. Financial reporting provides an organization’s management with crucial information
for analysis, planning, decision-making and benchmarking (Nobes, 2014). It gives the
stakeholders information which is important for making prudent and rational decisions about an
investment. A robust and sound financial reporting system facilitates inflows of capital and
promotes healthy competition. Generally, financial reporting is crucial to an organization and its
stakeholders for numerous reasons and therefore, financial reports should provide complete,
truthful and transparent financial information. This paper will analyze Verizon Communications’
financial reporting by analyzing its most recent annual report, financial statements notes to
financial statements, management analysis and discussion, and the president’s letter. Verizon
Communications is a telecommunications conglomerate based in the United States. It is an
American multinational conglomerate.
Disclosure Requirement on Accounting Policies
Accounting policies can be defined as a set of specific standards that govern an
organization’s preparation of its financial statements (Nobes, 2014). They are implemented by
the management team of an organization and are used when preparing financial statements. They
include procedures, methods and measurement systems for presenting disclosures. The
accounting policies that are used by a company vary from company to company and it is

FULL DISCLOSURE IN FINANCIAL REPORTING

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therefore important to disclose the primary accounting policies used by a company in preparation
and presentation of its financial statements. The disclosure should be a part of the statements.
Disclosing the accounting policies used ensures that the financial statements are well understood.
In certain cases, the disclosure is a requirement by the law. Examples of the commonly required
disclosures are significant accounting policies summary and investments (Leuz & Wysocki,
2016). The significant accounting policies summary disclosure contains the organization’s
description, sources, and purpose of revenue, and the main accounting policies that are in place.
The investments disclosure indicates the kind of investment in which the funds are held, ...


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