Reference no: EM132344488
Question
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 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 reportformat.
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.