Explore BrainMass

Explore BrainMass

    This post provides notes written for a fake annual report.

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A) Prepare simple fictitious financial statements

    B) Write notes for the fictitious annual report.

    Note 1: Significant Accounting Polices (consisting of at least 10 items)

    Notes 2-10+: Consisting of at least the items below.

    Inventory
    Property, Plant, & Equipment
    Contingencies and Liabilities
    Changes in Accounting Principles or Estimates
    Post Balance Sheet Events
    Mergers and Acquisitions
    Lease Obligations
    EPS
    Long-Term Debt
    Employee Pension Obligations

    The notes will include as "Summary of Significant Accounting Principles" as Note 1.
    The notes will then include detailed information about at least 10 different items that are usually contained in the notes to the financial statements.
    The student will gain experience in writing business topics and the need to have detailed information provided in the notes to the financial statements.

    Determine the detail information that should be included in Notes 2-10+. It is important to understand the difference between information furnished in Note 1 and a separate note detailing the information for the subject of the individual notes.

    © BrainMass Inc. brainmass.com March 4, 2021, 11:58 pm ad1c9bdddf
    https://brainmass.com/business/leasing/472380

    Solution Preview

    I gave you four extra notes, which are four that are included in almost all financial statements, but weren't included in the list, so you have a total of 14 notes.

    Thank you for requesting me. I always appreciate it, and I am always here to help.

    Mary

    Note 1: Significant Accounting Polices (consisting of at least 10 items)
    Notes 2-10+: Consisting of at least the items below.
    Inventory
    Property, Plant, & Equipment xx
    Contingencies and Liabilities xx
    Changes in Accounting Principles or Estimates xx
    Post Balance Sheet Events xx
    Mergers and Acquisitions xx
    Lease Obligations xx
    EPS xx
    Long-Term Debt xx
    Employee Pension Obligations xx
    (We're going to call our company Green, for simplicity purposes in wording the notes.)

    Note 1: Significant Accounting Polices
    The financial statements of Green Company have been prepared in accordance with current accounting rules and regulations, and are GAAP compliant. Green Company is a parent company, and all reporting rules and regulations have been adhered to in the reporting of Green Company's subsidiaries. Green Company and all subsidiaries use the same accounting methods. The use of rounding is present throughout the financial statements and attached schedules. Individual columns that do not total within the financial statements and related data are due to differences in rounding. Although the difference is not stated in each table or column, where there is a mismatching of totals, this is the cause, and is permitted for presentation purposes under GAAP.

    Note 2: Lease Obligations
    Green Company and all subsidiary companies have current lease obligations that are contained in one lease. Green Company recognizes the lease as an operating lease and has accounted for the lease through the appropriate expensing. The lease obligations are recognized in each subsidiary's financial statements as a capital lease and related assets are treated as asset purchases.

    Note 3: Property, Plant and Equipment
    All property, plant, and ...

    Solution Summary

    The solution provides notes written as examples for a fictitious annual report. Fourteen sample financial statement notes are included.

    $2.49

    ADVERTISEMENT