Search for a current event in the Journal of Accountancy and find one that involves accounting misstatements or fraud related to a publicly-traded company of your choice. Locate two or three corroborating news reports on this same company from other websites. The event should contain at least three of the following features:
• Theoretical structure of accounting
• Revenue recognition and profitability
• Economic resources
• Financial instruments and liabilities
• U.S. Generally Accepted Accounting Standards (GAAP)
• Financial reporting
After you have identified your current event, visit the SEC website and locate the company’s most recent Form 10K filing. Then, complete the following:
• Provide a one-page overview of the case based on your findings.
• Thoroughly research your topic or issue to identify trends, examine accounting principles and standards (include those from both FASB and IASB), make judgments, and offer recommendations or solutions.
• Be sure to explore issues of diversity and ethics as related to your topic or issue.
• Assess why this particular company is of interest to you and why other accountants should also share similar concerns.
• Review the company’s SEC Form- 10K filings. What do financial ratios tell you about the health of the company?
• Where applicable, be sure to include domestic or international accounting standards related to any notable issues.
• In the conclusion of the paper, express your opinion of the outlook for the company.
• What are your recommendations for investing in this company?
– Use at least 2 pages out of the 12 pages and do a ratio analysis calculation of the following (explain what each one means):
o 1. Working Capital Ratio
o 2. Quick Ratio
o 3. Earnings per Share (EPS)
o 4. Price-Earnings (P/E) Ratio
o 5. Debt-Equity Ratio
o 6. Return on Equity (ROE)
– Use the last 2 years of the company 10K to do the ratio analysis
Length: 12 pages, not including title and reference pages
References: Include at least 8 scholarly resources. One article must come from the Journal of Accountancy and it counts toward the 8 required sources.
Journal of Accountancy: https://www.journalofaccountancy.com/
– No passive voice
– Double check grammar