You are the CFO for a small public corporation and just prior to releasing the annual report you were asked by the CEO to help him understand the concept of “Other Comprehensive Income.” He sees this on the Income Statement and the Balance Sheet. He is confused as to whether we report net income or comprehensive income in our public releases. Also, he doesn’t remember comprehensive income being a part of the financial statements when he took accounting courses in college (many years ago). He has asked for an information paper which will provide the specific accounting rules or pronouncements which require this presentation, any information you can provide on why accounting authoritative bodies established the requirement (who wants the info and why they want it) and an explanation (with examples) of the items which are required to be included in other comprehensive income.
The Research Memorandum must conform to A.PA format and be at least three to five pages in length, NOT including references. Spend no more than one page describing the situation. Paper and presentation must cite authoritative bodies.
I. In a minimum of seven sentences each:
1. describe your initial thoughts regarding the case and the challenges that you feel that you will face with regards to the depth and complexity of the issues that will be addressed.
2. summarize the background of your case and indicate any assumptions that you are making regarding the case. Define your problem statement and research question(s).
3. identify the key terms in your case and state why you believe that each one is relevant to your case.
II. Gather data from multiple sources and present that data in one to two pages (12-point, 2x spaced). Be sure to document your sources.
III. Organize and interpret the findings of your research in one to two pages (12-point, 2x spaced).
IV. Develop your recommendations and conclusions, and state them and their rationale in one to two pages (12-point, 2x spaced).
V. Using the guidelines above, have a comprehensive research memorandum on the case that you chose.