ACC 690 Milestone Three Guidelines and Rubric Overview: The final project for this course is the creation of a white paper consisting of a report and spreadsheets. You will be placed in a scenario in...

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In your final project, you will imagine yourself as an accountant at a certified public accountant (CPA) firm. The CPA partners have requested you write a white paper about a few different accounting situations that customers ask about. In Milestone Three, you will lay out the key issues regarding international business transactions.




ACC 690 Milestone Three Guidelines and Rubric Overview: The final project for this course is the creation of a white paper consisting of a report and spreadsheets. You will be placed in a scenario in which you will take the role of an associate in a certified public accountant (CPA) firm. The CPA partners in the scenario ask you to create a report for the firm’s clients to help address some of the questions they ask. You will address questions from the firm’s clients by assembling the necessary information in a written report format. Your report should include spreadsheet examples. Topics addressed in the white paper will cover bankruptcy, interim and segment reporting, foreign currency transactions, and nonprofit and governmental accounting. Your three milestone assignments for this course consist of drafting shorter reports and supporting spreadsheets, which will prepare you for the completion of a comprehensive white paper. You should use your instructor’s feedback from the milestone submissions to improve your final submission. Prompt: For Milestone Three, draft a short paper and the necessary spreadsheets for Section I, Part D of the final project. Specifically, the following critical elements must be addressed: I. Incorporation: Clients considering structuring their new business as a corporation are aware that there are complex issues to consider when accounting for an incorporated entity. The clients want information about the following key areas: D. When incorporating, it is important to consider whether or not the company will conduct business internationally. 1. Summarize the impact of foreign exchange rates on the company’s financial statements. What risks do foreign exchange rates pose? Provide academically supported example(s) in your response. 2. What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used? Provide academic support in your response. 3. Compose a hypothetical example to demonstrate the translation process using the two methods. Ensure all information is entered accurately. Rubric Guidelines for Submission: Your paper must be submitted as a 2- to 3-page Word document (excluding the title page, reference page, and spreadsheet addendums). Use double spacing, 12-point Times New Roman font, one-inch margins, and at least two academic sources (in addition to your textbook) cited in APA format. Your accompanying spreadsheets must be submitted as Microsoft Excel files. Critical Elements Proficient (100%) Needs Improvement (70%) Not Evident (0%) Value Incorporation: Impact of Foreign Exchange Rates Summarizes the impact of foreign exchange rates on the financial statements and determines the risks they pose, providing academically supported example Summarizes the impact of foreign exchange rates on the financial statements but does not determine the risks they pose, or summary is cursory, not supported, or has inaccuracies Does not summarize the impact of foreign exchange rates on the financial statements 30 Critical Elements Proficient (100%) Needs Improvement (70%) Not Evident (0%) Value Incorporation: Two Methods to Translate Financial Statements Describes the two methods used to translate financial statements and how the functional currency plays a role in determining which is used, with academic support Describes the two methods used to translate financial statements but does not describe how the functional currency plays a role in determining which is used, or description is cursory or has inaccuracies Does not describe the two methods of translation 30 Incorporation: Demonstrate the Translation Process Composes a hypothetical example demonstrating the translation process using the two methods and ensures all information is entered accurately Composes a hypothetical example demonstrating the translation process using the two methods but contains inaccuracies Does not compose a hypothetical example 30 Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total 100%
Answered Same DayMay 23, 2021

Answer To: ACC 690 Milestone Three Guidelines and Rubric Overview: The final project for this course is the...

Harshit answered on May 24 2021
149 Votes
FOREIGN EXCHANGE
1. The transactions on the foreign currency are initially recognized at the spot rate of the foreign currency against the functiona
l currency on the date of the transaction. If the balance from the transaction remains, the same is recorded at subsequent recognition in the financial statements on the date of balance sheet. If there is a difference of exchange rates, then amount of profit or loss has to be separately recognized as profit or loss due to translation of foreign currency. The amount of profit or loss due to exchange fluctuations affects the consolidated financial performance or the income statement of the financial statements.
The foreign exchange risk created due to the import or export creates Debtors or Creditors in foreign currency which is valued at two different rates. The foreign exchange rates pose the following risks:
· Transaction Risk: If the rate of exchange of foreign currency appreciates against the functional currency, the company has to make extra amount of payment due to increase in the value of currency.
· Translation Risk: The amount of profit or loss me have to be recognized by the parent company if the subsidiary maintains the books in another currency. The parent company has to translate the balances of subsidiary company in the functional currency which may create certain difference of profit or loss.
· Economic Risk: Due to the exposure of base company due to import or export, the fluctuations in the rate of...
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