Assignment 1: Full Disclosure in Financial Reporting – Verizon Communications

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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.