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Module Two Short Paper: Footnotes
Charlotte De La Cruz
Southern New Hampshire University
ACC 317: Intermediate Accounting I
Professor Rebecca Ingoglia
July 9, 2023
Module Two Assignment: Footnotes
Footnotes to financial statements is additional information that helps explain how a company reached its financial figures. The figures in financial statements might need additional clarifications due to inconsistencies or irregularities. Additionally, footnotes disclose additional details about a company’s activities, investments, transactions and other items that could impact a company’s performance. A company will also explain what accounting method was used and if
it’s changed from any past practice or should be interpreted differently. Companies know what to
include in footnotes by referring to the International Financial Reporting Standards (IFRS) or Generally accepted accounting principles (GAAP) to determine what information is relevant. Footnotes are important because they provide additional information and number alone cannot explain a company’s story. Many external factors can affect a company’s financial results
and it is important to stay transparent about any changes, risks and uncertainties. Information presented in the core financial statements like the balance sheet, income statement and statement of cash flow often need additional clarification. For example, earnings per share can be calculated with different methods and a company’s earnings can be distorted by GAAP principles. Additionally, footnotes can be used to explain how a value was assessed on a line item, like the method in which depreciation was determined. Financial statements need supplemental information to explain numbers because they help explain the accounting policies adopted by the company as well as the assumptions used to prepare the financial statements. Different companies use footnotes for a variety of purposes, but they are essential when a
company’s goal is to provide additional context and transparency. Three companies that have unique details in their footnotes are Walmart, Alphabet and Tesla.
Walmart
- Their footnotes are very extensive and explain many different aspects of their business. The footnotes speak about different branches and locations, employee benefits, financial risks, products and legal proceedings. This provides a very detailed company story. Alphabet- The footnotes are brief and are more focused on explaining the financial statements. Subjects like gains and losses, resources for cash flow, legal meters and stockholders’ equity are mentioned. The company does not speak about their mission and beliefs, and instead focuses their attention more towards explaining the methods and factors that impacted the preparation of their financial
statements. Tesla- Tesla’s footnotes address their revenue related to vehicle sales, energy and storage. They also address tax incentives, property leases and international tax rates. Tesla’s footnotes provide information on the company’s stock, environmental liabilities and research expenses. Walmart and Tesla’s financial reports are 10K annual reports. These seem to be more in depth by
speaking in detail about subjects that go beyond the financial reports. This information provides an incredible amount of transparency about their goals, operations and commitments. Alphabet’s report is a 10 Q quarterly report. Their footnotes are brief and concentrated on the explanation of the financial statements. Although the amount of information differs with each company, the footnotes help clarify the context of the numbers provided and assist stakeholders and public in understanding the statements better.
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References
Alphabet Inc. (2022). Form 10-K Q1 2022. https://www.sec.gov/ix?doc=/Archives/edgar/data/0001652044/000165204422000029/goog-
20220331.htm#if498f6f02e5a474790944835d386b56b_16.
Investor.gov. (n.d.). Using EDGAR to Research Investments
. https://www.investor.gov/introduction-
investing/getting-started/researching-investments/using-edgar-research-investments. Walmart Inc. (2022). Form 10-K 2022. https://www.sec.gov/ix?doc=/Archives/edgar/data/104169/000010416922000012/wmt-
20220131.htm#i1ba69ebb72ec48f9b754a5e96c4cdf3f_139
.
Tesla Inc. (2021). Form 10-K Q4 2021. https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000095017022000796/tsla-
20211231.htm#consolidated_balance_sheets.
Related Questions
Answer the questions in the attached image
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None
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Visit the website of the US Securities and Exchange Commission (SEC) https://www.sec.gov/edgar/searchedgar/companysearch.html Search for the latest Form 10-K for a company you would like to analyze. Submit a short memo that
A. Includes the name of the company you have chosen.B. Review the company’s end-of-period Balance Sheet to determine the following:
Total assets
Total liabilities
Total equity
C. Compare beginning and ending Assets totals and discuss the amount of change.D. Compare beginning and ending Liabilities totals and discuss the amount of change.E. Compare beginning and ending Equity totals and discuss the amount of change.
Please provide a link to the company’s Form 10-K to allow accurate verification of your answers.
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ll Digicel ?
( 8:20 AM
© 49%
P Flag question
Time left 0:34:28
Auditing is the systematic process of obtaining
and evaluating evidence regarding
assertions about economic actions and events in
order to determine how well they correspond to
the established criteria. Developing knowledge of
business operations is regarded as a part of which
of the following audit processes?
а.
evaluation of evidence
b.
collection of evidence
С.
planning
d.
communication of results
Question 3
A moodle.uog.edu.gy
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Solve #35 please
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Question 1 If you are a financial analyst
considering an investment in a Public
Company (quoted in the stock markets),
which of the following statement is
correct? A) You will not have access to
the annual financial statements B) You
are an external user of accounting
information You will be using managerial
accounting 6.7 Points You are an internal
user of accounting information
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9
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a INOUS OF ADCOUNTING
O F E/20OISTAOSEMESTERPRINCIPLES orADACCOLNTINGPRINCIPLESSJOOr2DACCOUNTINGNO3sASS20200 pd
V Draw
Y Highight Q Frase
A Read aloud
as a
LECTURE Z - ACCountIng Coicepts
Question
• Define the following accounting concepts and explain for each their
implications for the preparation of financial statements
a) The Entity concept
b) Going concern
c) Materiality
d) Realization
e) Fair presentation (true and fair view)
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General Accounting Expert answer
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Please analyze, assess, and synthesize the Annual Report or Form 10-K or Form 20 - F (whatever they call
it in that jurisdiction) of the company you choose. You can usually find it on the Company's website in
Investor R. Introduction 2. Industry situation and company plans A. Management Letter B. B. Review
Company's Products and Services 3. Financial Statements A. Income Statement B. Cash Flow Statement
C. Balance Sheet D. Accounting Policies 4. Financial Analysis & Ratio A. Financial Analysis B. Ratio C.
Market Indicator Financial Ratios 5. References 6. Complete Calcuation of Part 4 in excelLimi
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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https://www.republictt.com/pdfs/annual-reports/RFHL-Annual-Report-2022.pdf
Use the link above to
c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer, indicate whether the company complied with the accounting standards and conventions.
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1
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Answer the question shown in the attached picture
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1UWI Open CampusACCT 1002INTRODUCTION TOFINANCIAL ACCOUNTINGWorksheet 1Unit # 2 WorksheetFinancial Accounting Cycle- Part I1. The accounting equation is often described as being very important inaccounting. Explain the purpose of the accounting equation and state twodifferent forms or ways in which it can be written.2. Distinguish between assets and liabilities and provide three (3) examples ofeach to support your arguments.3. Distinguish between income and expenses and provide three (3) examples ofeach to support your arguments.4. Suppose a business receives a bill for services rendered from one of itssuppliers. The business will pay the supplier next month. When the businessreceives the bill from its supplier, explain how this affect the accounting equationin terms of increasing or decreasing assets, liabilities, or owner’s equity?5. Suppose equipment is sold for cash in an amount equal to the cost of theequipment recorded on the books. How does this sale affect the…
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Disclosure of the accounting estimates involved when preparing financial statements enables users of financial statements to better understand how the financial information is derived, and it enables comparisons between companies regarding the basis on which management makes decisions.
Required:
Reflecting on topics we discussed throughout the semester, provide three examples of how different accounting estimates or accounting policies impact the profit reported by the firm.
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Requirement
Referring to the qualitative characteristics of accounting information, indicate the fundamental characteristic (relevance or representationally
faithful) and its related attribute (confirmatory value, completeness, materiality, neutrality, or predictive value) for each of the following uses of
accounting information.
Use of Accounting Information
This year's reported earnings per share is
a. $.50 below analysts' forecasts
Potential creditors review a company's long-
term liabilities footnote to determine that
b. entity's ability to assume additional debt.
A corporation discloses both favorable and
unfavorable tax settlements.
C.
A company discloses the write-off of an
accounts receivable. The receivable due from
a major customer accounts for 35% of the
d. company's current assets.
A financial analyst computes a company's
five-year average cost of goods sold in order
e. to forecast next year's profit margin.
*****
Fundamental Characteristic
Attribute
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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