Assignment 1: Full Disclosure in Financial Reporting – Verizon CommunicationsDue Week 9 and worth...

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Assignment 1: Full Disclosure in Financial Reporting – Verizon Communications Due Week 9 and worth 110 points According to the textbook, the goal of financial reporting is to report financial...

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Assignment 1: Full Disclosure in Financial Reporting – Verizon Communications

Due Week 9 and worth 110 points

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:

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.
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.
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.
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 way you believe banks will perceive Verizon’s auditor’s report.
Use the Strayer Library to locate at least two (2) quality academic resources in this assignment.Note:Wikipedia and other websites do not qualify as academic resources.

Answered Same Day Jun 01, 2021

Pallavi · Accepted Answer

1. The disclosure requirements on accounting policies:
a. As per the company accounting policy, the company should account any gain and losses, in the present year only, arrived from any transaction which is related to such business. In 2018, the company has accounted net pre tax pension and benefits of around $2.1 billion. In 2017, the company has accounted net pre tax pension and benefits of around $1.4 billion. However, in 2016, the company has accounted net pre tax pension and benefits of around $2.9 billion.
b. The company conducts impairment test at the end of each financial year and accounts for the difference if it arises in between the fair value and the carrying value of the respective asset. The company has executed the impairment test for Wireless, Wireline, Media and Connect reporting units at the end of fourth quarter of 2018. The result made it clear that fair value of all the reporting units has exceeded the carrying value of the reporting unit, except for Media reporting unit. In 2018, 2017, 2016 the company has conducted impairment test and concluded that fair value of all the reported units Wireless, Wireline and Connect is more than their respective carrying value and hence there is no impairment of goodwill. In 2017 and 2016, the fair value of the Media reporting units was more from the carrying value and hence did not reported any impairment loss  of goodwill. 
Further, the company has clearly and separately shown the impairment value of goodwill leads to which the financial users would be able to know the effect of such impairment in the financial statements. This disclosure would help to understand about the wealth of each reporting unit at the end of the financial year.
2. The three items from Verizon’s management and discussion analysis of the annual report that could be useful for the potential investors are as follows:
· Corporate responsibility goals
The company is focusing on the development of the technology that would be able to build the different impact on SDG 4 that delivers effective skills to the talented people thereby making them more efficient for the job. The company is not only delivering benefits to the youths but also motivating the standard which is beneficial for future economy.

Assignment 1: Full Disclosure in Financial Reporting – Verizon Communications Due Week 9 and worth 110 points According to the textbook, the goal of financial reporting is to report financial...

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