This writing assessment is designed to enhance your research skills using the FASB Codification and improve your graduate level writing skills. Login credentials to the FASB Codification are provided in the syllabus under Class Guidelines.
Academic writing is different from general writing. You are strongly advised to start this project early in the semester and engage the help of UMUC Writing Tutors. Every graduate accounting course offers free UMUC writing tutors. Register for a writing tutor at the beginning of the semester and submit drafts of this assignment for guidance. Upon receiving guidance from a UMUC writing tutor, improve your next draft, and resubmit your paper for additional guidance. Writing is an iterative process whereby you plan, research, write, edit, research more if needed, rewrite, edit, and rewrite until you have created a clear, concise, and correct paper.
Case Citation:
Casey J. McNellis (2018) Dynamic Divestures: A Codification Exercise on the Reporting of Discontinued Operations. Issues in Accounting Education: February 2018, Vol. 33, No. 1, pp. 53-63.
Requirements
During the first week of 2018, Dynamic's corporate controller, Anne Smith, prepares to initiate the closing activities for 2017. The closing process at Dynamic is very extensive, as it includes routine activities for consolidating the activities of several subsidiary companies for the creation of the consolidated financial statements. Furthermore, Dynamic's reporting personnel must also address the unique complications of each acquisition and divesture. As Ms. Smith awaits the final financial statement numbers prepared by the reporting personnel at each subsidiary, she is anxious to determine the appropriate financial statement presentation of the three subsidiaries discussed above. Most specifically, she is curious as to whether the financial performance of each of the three subsidiaries qualifies for reporting under discontinued operations. Ms. Smith has asked you to review the intricacies of ZD Consulting, Hope Industries, and AM Mining Operations to determine which type of reporting (i.e., continuing operations versus discontinued operations) is appropriate for each subsidiary on Dynamic's consolidated income statement.
To complete the task, you should perform the following functions:
1. Consider the facts presented for each company within the case.
2. Consult the FASB Accounting Standards Codificationt for guidance on the specific income statement presentation issue that the controller has requested.
3. Prepare a memo that clearly addresses the issue, discusses each company's facts, and provides a clear conclusion regarding the appropriate presentation of each company's financial information on Dynamic's consolidated income statement. In constructing this memo, you should expect to incorporate Accounting Standards Codificationt references.
Instructions:
- Read the case study and prepare answers to the questions at the end of the case for ZD Consulting Services only.
- APA style formatting is required.
- Approximate length of the memo using APA style is 3 pages.
Attachment:- Dynamic Divestures Codification Case Reporting of Discontinued Operations.rar