According to the AICPA (American Institute of Certified Public Accountants), a CPA in today’s environment must not only have a high level of technical competence and a sense of commitment to service, but must also have good communications and analytical skills and the ability to work well with people. 

Employers are looking for individuals who have the ability to analyze and evaluate complex business problems and the interpersonal skills and maturity to make decisions in a client and customer service environment. 

If you continue to use the company that you adopted in ACC 610, you will apply the technical competence and other skills required by today’s CPAs. Through case-study analysis, you will develop skills such as communication, presentation, and interpersonal relations in conjunction with technical accounting knowledge. 

If you have transferred directly into ACC 620 and have not had the opportunity to choose a company, or are choosing a different company than you used in ACC 610 you will do so at this time. 

Throughout ACC 620, you will apply the concepts you are learning using the financial data and business scenarios of a prominent retail company. You may choose from Walmart, Kroger, Amazon, Costco, The Home Depot, CVS Health Corporation or Target. ACC 620: 

Financial Reporting II is a continuation of ACC 610. In ACC 620, your focus in the final project will be on developing skills in critical thinking and applying accounting theories and practices according to generally accepted accounting principles (GAAP). 

You will be analyzing situations and communicating results to decision makers with an emphasis on stockholders’ equity, income measurement, income taxes, pensions, leases, and statements of changes in financial positions. 

Complete critical elements I and II of the final project. 

I. Stockholders’ Equity: 

A. Determine how your company got its initial financial start in terms of debt (liabilities) or equity (capital). Support your response. 

B. Analyze the equity section of your company’s balance sheet as compared to your company’s industry average. Rate the company’s performance against its competitors. 

C. Review your company’s dividend policy and its history. Based on the information, discuss the trends over the past year. 

II. Income Measurement/Revenue Recognition: 

A. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) came together on a unified project to outline the accounting principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. Research IAS-18, Revenue, and discuss how it would apply to your company. 

B. Review your company’s revenue over the past two years. Analyze the change in revenue (increase/decrease) and give the reasons for this change. 

C. Reflecting upon your company’s balance sheet, identify the unearned revenue accounts listed. How does your company handle the proper accounting treatment with regard to recognizing revenue from unearned revenue accounts?  

 Guidelines for Submission: Your paper must be submitted as a 2–4-page Microsoft Word document with double spacing, 12-point Times New Roman font, one inch margins, and at least three sources cited in APA format.