1. “Segmented Information and Reporting Requirements” Please respond to the following:
- Suppose that management is considering preparing segmented information but is unsure on how to identify a segment and is unsure on why the information is important. Outline a brief memo to management explaining the importance of segmented information, and create an action plan on the main steps management should take to identify a segment. Also, provide your opinion on the effect segmented information will have on the company’s financial disclosure.
- Speculate as to why there has been an increase in reporting requirements in the last ten (10) years. Also, give your opinion on whether the increase in reporting requirements has improved investors’ and creditors’ confidence in corporations. Provide at least two (2) specific examples of improvements to support your opinion.
2. “Financial Statement Analysis and Disclosures” Please respond to the following:
- Discuss the importance of financial statement analysis, and determine why it is important to investors and creditors. Imagine you are considering investing in a corporation. Suggest what key information you would look for in a company’s financial statements, and explain why this information is important to you.
- From the e-Activity, highlight the main elements that primary disclosure accounting policies encompass, and provide at least two (2) examples of the most commonly required disclosures. Give your opinion on the way in which the disclosures you identified are important to financial statement users. Provide a rationale for your opinion.
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