ACC 620 Milestone One Guidelines and Ru
ic
According to the AICPA (American Institute of Certified Public Accountants), a CPA in today’s environment must not only have a high level of technical
competence and a sense of commitment to service, but must also have good communications and analytical skills and the ability to work well with people.
Employers are looking for individuals who have the ability to analyze and evaluate complex business problems and the interpersonal skills and maturity to make
decisions in a client and customer service environment.
If you continue to use the company that you adopted in ACC 610, you will apply the technical competence and other skills required by today’s CPAs. Through
case-study analysis, you will develop skills such as communication, presentation, and interpersonal relations in conjunction with technical accounting knowledge.
If you have transfe
ed directly into ACC 620 and have not had the opportunity to choose a company, or are choosing a different company than you used in ACC
610 you will do so at this time. Throughout ACC 620, you will apply the concepts you are learning using the financial data and business scenarios of a prominent
etail company. You may choose from Walmart, Kroger, Amazon, Costco, The Home Depot, CVS Health Corporation or Target.
ACC 620: Financial Reporting II is a continuation of ACC 610. In ACC 620, your focus in the final project will be on developing skills in critical thinking and applying
accounting theories and practices according to generally accepted accounting principles (GAAP). You will be analyzing situations and communicating results to
decision makers with an emphasis on stockholders’ equity, income measurement, income taxes, pensions, leases, and statements of changes in financial
positions.
Complete critical elements I and II of the final project.
I. Stockholders’ Equity
A. Determine how your company got its initial financial start in terms of debt (liabilities) or equity (capital). Support your response.
B. Analyze the equity section of your company’s balance sheet as compared to your company’s industry average. Rate the company’s performance
against its competitors.
C. Review your company’s dividend policy and its history. Based on the information, discuss the trends over the past year.
II. Income Measurement/Revenue Recognition
A. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) came together on a unified project to
outline the accounting principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. Research IAS-18,
Revenue, and discuss how it would apply to your company.
B. Review your company’s revenue over the past two years. Analyze the change in revenue (increase/decrease) and give the reasons for this
change.
C. Reflecting upon your company’s balance sheet, identify the unearned revenue accounts listed. How does your company handle the proper
accounting treatment with regard to recognizing revenue from unearned revenue accounts?
Ru
ic
Guidelines for Submission: Your paper must be submitted as a 2–4-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-
inch margins, and at least three sources cited in APA format.
Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value
Stockholders’
Equity: Initial
Financial Start
Meets “Proficient” criteria and
uses concrete examples to
substantiate claims
Determines whether the
company obtained its startup
financing from debt or equity
and supports response
Determines whether the
company obtained its startup
financing from debt or equity,
ut does not support response
Does not identify how the
company obtained its startup
financing
15
Stockholders’
Equity: Industry
Average
Meets “Proficient” criteria and
uses concrete examples to
substantiate claims
Analyzes the company’s equity
section as compared to the
industry average and accurately
ates the company’s
performance against
competitors
Analyzes the company’s equity
section as compared to the
industry average, but does not
accurately rate the company’s
performance against
competitors
Does not analyze the company’s
equity section
15
Stockholders’
Equity: Dividend
Policy
Meets “Proficient” criteria, and
discussion is exceptionally clear
and contextualized
Analyzes the company’s
dividend policy and its history
to discuss the trends over the
past year
Analyzes the company’s
dividend policy and its history,
ut does not discuss the trends
over the past year
Does not analyze the company’s
dividend policy
15
Income
Measurement/
Revenue
Recognition: IAS-18
Meets “Proficient” criteria and
uses concrete examples to
substantiate claims
Discusses IAS-18’s application
to the company
Discusses IAS-18’s application
to the company, but discussion
is cursory or lacks detail
Does not research IAS-18 15
Income
Measurement/
Revenue
Recognition:
Revenue
Meets “Proficient” criteria, and
ationale is well supported with
concrete evidence
Analyzes the change in revenue
and gives the reasons for the
change
Analyzes the change in revenue,
ut does not give the reasons
for the change
Does not analyze the change in
evenue
15
Income
Measurement/
Revenue
Recognition:
Unearned Revenue
Meets “Proficient” criteria and
displays a nuanced
understanding of the
company’s internal processes
Identifies unearned revenue
accounts listed as well as how
the company handles the
proper accounting treatment
with regard to recognizing
evenue from unearned
evenue accounts
Identifies unearned revenue
accounts listed, but does not
determine how the company
handles the proper accounting
treatment with regard to
ecognizing revenue from
unearned revenue accounts
Does not identify unearned
evenue accounts listed
15
Articulation of
Response
Submission is free of e
ors
elated to citations, grammar,
spelling, syntax, and
organization and is presented in
Submission has no major e
ors
elated to citations, grammar,
spelling, syntax, or organization
Submission has major e
ors
elated to citations, grammar,
spelling, syntax, or organization
that negatively impact
Submission has critical e
ors
elated to citations, grammar,
spelling, syntax, or organization
10
a professional and easy-to-read
format
eadability and articulation of
main ideas
that prevent understanding of
ideas
Total 100%