Assignment 1: Full Disclosure in Financial Reporting – Verizon Communications

According to the textbook,the goal of financial reporting is to report financial information thatis transparent and complete and truthfully report the financialperformance of a company. Investors and other interested parties need toread and understand all aspects of financing reporting.

Usethe Internet to research Verizon Communications’ financial statements,annual report, notes to the financial statements, president’s letter,and management discussion and analysis from the most recent year inorder to complete this assignment.

Write a five to six (5-6) page paper in which you:

1. Discussthe disclosure requirement on accounting policies, and identify atleast two (2) examples of the most commonly required disclosure. Explainthe key ways in which the examples you provided are useful to financialstatement users. Analyze Verizon Communications’ disclosure onaccounting policies, and give your opinion on whether or not theinformation is helpful for decision making. Provide a rationale for yourresponse.
2. Explainthe importance of the management discussion and analysis section of anannual report.  Select three (3) items from Verizon’s management anddiscussion analysis of the annual report that could be useful topotential investors. Provide three (3) specific examples of how thethree (3) items you selected could influence a potential investor’sdecision to invest in Verizon. 
3. Describesegmented information, and explain the way in which companies determinesegments. Identify at least three (3) advantages and three (3)disadvantages of segmented financial data. Give your opinion on whetheror not the advantages outweigh the disadvantages. Outline the manner inwhich Verizon segments its financial data. Suggest key actions thatVerizon’s management can take in order to improve the company’ssegmented financial data. Provide a rationale for your response.
4. Analyzethe various types of auditor’s reports, and determine the impact thatthe auditor’s report has on a company’s ability to obtain financing froma bank. Identify the type of auditor’s report issued on Verizon, andspeculate the manner in which you believe banks will perceive Verizon’sauditor’s report. 
5. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

• Betyped, double spaced, using Times New Roman font (size 12), withone-inch margins on all sides; citations and references must follow APAor school-specific format. Check with your professor for any additionalinstructions.
• Includea cover page containing the title of the assignment, the student’sname, the professor’s name, the course title, and the date. The coverpage and the reference page are not included in the required assignmentpage length.

The specific course learning outcomes associated with this assignment are:

• Analyze and explain the requirements for full disclosure in financial reporting.
• Evaluate the importance and impact of full disclosure or non-disclosure in accounting practices.
• Use technology and information resources to research issues in intermediate accounting.
• Write clearly and concisely about intermediate accounting using proper writing mechanics.