Reference no: EM133382943
Assume you and your team have been contacted by a client that has a significant investment in CRYPTOCURRENCY and would like you to conduct some research on the impact the Reporting GUIDELINES and the impact they will have on their financial statements. Assume the client has been reporting a net loss for the past 3 years, has significant debt, cash flow and liquidity issues and a deficit in retained earnings.
ADDITIONALLY, your client was investing with FTX and Alameda....both of which have filed for bankruptcy....and your client could potentially lose $500 MILLION...how should that be reflected in the Financial Statements???
Your MEMO should be 6-8 pages in length, not including references and include some of the following topics:
Define Cryptocurrency
Discuss the the ASC 350 Intangible Guidance and Topic 820 Fair Value Measurement and the impact it will have on both current and future transactions
Discuss the impact of Impairment on Financial Repots
Alternatives to CRYPTO reported as an Intangible Asset and should the guidance be updated or even be eliminated?
IMPACT of the FTX Bankruptcy on an investor
Conclusion
Here are some guidelines you and your team can follow when drafting your memo:
I. Drafting the Written Case Memo:
Once you have gathered the necessary information, a draft of your analysis to your client should include the following sections:
a. Introduction
Identify the key problems and issues in the case study.
Formulate and include a thesis statement, summarizing the outcome of your analysis in 1-2 sentences.
b. Historical Background
Set the scene: background information, relevant facts, and the most important issues.
Demonstrate that you have researched the problems in this case study.
c. Alternatives: What should we do about the problem?
Outline possible alternatives (not necessarily all of them)
Explain why alternatives were rejected
Constraints/reasons
Why are alternatives not possible at this time?
d. Proposed Solution
Provide one specific and realistic solution
Explain why this solution was chosen
Support this solution with solid evidence
Concepts from class (text readings, discussions, lectures)
Outside research
Personal experience (anecdotes)
f. Recommendations
Determine and discuss specific strategies for accomplishing the proposed solution.
If applicable, recommend further action to resolve some of the issues
What should be done and who should do it?
g. References/Resources
II. Finalizing the Case
After you have composed the first draft of your case study analysis, read through it to check for any gaps or inconsistencies in content or structure: Is your thesis statement clear and direct? Have you provided solid evidence? Is any component from the analysis missing?
When you make the necessary revisions, proofread and edit your analysis before submitting the final draft.