Adjusting Entries & Critical Elements

Adjusting Entries & Critical Elements

Building a portfolio on AMAZON: in this you will address these outcomes:

Differentiate between the Generally Accepted Accounting Principles and the International Financial Reporting Standards
for their impact on financial statements

Determine appropriate accounting treatments of business transactions, including adjusting entries, for their impact on the
results of financial statements
Specifically, the following critical elements must be addressed:

IV. Adjusting Entries: For this part ofthe assessment, you will continue your financial analysis paper.

A. Explain the type of depreciation method your company uses and why they use this method.

B. Identify an example of an adjusting entry (other than depreciation), such as prepaid expenses, supplies, or unearned
revenue, and whether or not your company has this account listed on the balance sheet. You could consider why this might not
be listed.

VI. Communication: For this part ofthe assessment, you will prepare memorandums to upper management addressing
certain scenarios or situations.

A. As the controller ofyour chosen company, compose a memo to the CEO addressing the advantages and
disadvantages of transitioning from GAAP to IFRS.

B. As the controller ofyour chosen company, compose a memo to the CEO addressing the following scenario: Your
biggest customer has just gone bankrupt, an