You have been provided with a significant amount of material from Ernst & Young’s Academic Resource Center on two converged accounting standards that cover revenue recognition and lease accounting. These are major converged accounting standards, which were subject to intense scrutiny not only by boards but also by publicly listed companies around the world.
By now, many U.S.-based publicly listed firms have implemented either or both of these accounting standards, and you can see the impact of their implementation disclosed, in detail, in their annual reports on Form 10K and in the footnotes to those financial statements.
In the MPAcc Program l, we believe “seeing is believing.” To that, find a publicly listed company of your choice and locate in its most recent annual report the disclosures and impacts of implementing revenue recognition or lease accounting standards on the financial statements.
Summarize any such related disclosures that you find as part of your initial response and provide a link to the related annual report.
Answer the following points and questions in your initial response:
- Prepare an organized annotation of what you found in the annual report for your chosen company. (An annotation is a summary of the main points of the implementation of the standard for the company you have chosen to summarize for the class)
- Include the following questions in your annotation:
- Problem: What is/was the major application of the standard which your chosen company was required to implement as a result of revenue recognition and lease accounting standard? What was different from before, in other words, as a result of your chosen company adopting the current accounting standard?
- Results: What was the result or conclusion of the financial statement impact of implementing the new standard on the results of operations and/or the financial condition of your chosen company?
- Application: How might practitioners or your classmates potentially apply what was covered or is being covered related to implementing that standard in the annual report in the real world? Be specific
