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Write a 700- to 1,050-word executive memo as a team




As a Staff I assigned to the audit of a publicly traded company, your senior has asked you to evaluate both share-based payment reporting and special purpose entities (SPE) reporting for the company.;Research share-based payment reporting and SPE reporting individually.;Write a 700- to 1,050-word executive memo as a team that includes a description of what you will look for to see if the client is consistent with the generally accepted accounting principles (GAAP). Pay particular attention to accounting treatment of share-based payment and accounting consolidation theory as it relates to special purpose entities. Keep the memo as brief as possible while fully exploring the issues.;Format your paper consistent with APA guidelines, including appropriate citations and references. Run your paper through WritePointSM and Plagiarism Checker.;Additional Requirements;Level of Detail: Show all work;Other Requirements: I just need 210 word count answering partial question on this.;my question is (What to look for to see if the client is consistent with GAAP);I have an outline done for it and it would be nice if the answer can be modeled around it. Refer below for my outline;What to look for to see if the client is consistent with GAAP.Post Enron- controversy the attention went to the usage of SPE's. FASB reacted by coming out with a new interpretation of present accounting principles.. This was to include certain balance sheet items in the company's balance sheet..Sponsors benefit from the entities by removing debt from the balance sheet to meet certain ratios or loan covenants. In addition, the preparations shield the sponsor from financial failure by its Special Purpose Reporting Entities. The sponsor is at risk for only what it has put into the Special Purpose Reporting Entities should the project created fail. As a result, the sponsor pays the price for the off-balance sheet arrangements. On the other hand, the sponsor shall remove from its balance sheet the assets related to the debt that has been moved to the Special Purpose Reporting Entities. Generally Accepted Accounting Principles suggests the sponsor not possess the ability to vote in Special Purpose Reporting Entities.. FASB Interpretation: - The explanations of the targets of interpretation 46 (R) can be given in two ways: the identification of variable interest entities and the determination of the business endeavor. The business endeavor can have the result of variable interest entities related activities, liabilities, assets, etc. SPEs, which are some of the common entities, are not included for the above type of interpretation. Rests of the entities are included in this interpretation (Soroos & Ciesielski, 2008).;References;References;FASB Issues Final Statement on Accounting for Share-Based Payment. (2004). Retrieved December 22, 2008, from;IFRS-2: Share-based Payment. Retrieved December 22, 2008, fromhttp://accounting's/ifrs/ifrs-chapters/ifrs-2-share-based-payment/;Soroos, J. & Ciesielski, J.T. (2008). "Accounting for Special Purpose Entities". Retrieved December 22, 2008, from


Paper#23663 | Written in 18-Jul-2015

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